Three Tips for Managing a Successful Business Expansion to Hong Kong

Hong Kong is an ideal place to set up shop if you are looking to expand your business into an international market. Friendly taxation laws and incentives are designed to make Hong Kong the preferred choice for international businesses looking to create a foothold in Asia.

As with any international expansion, however, there are some tricky waters to navigate both in the initial setup and long-term management of your business in Hong Kong. Here are three tips to help make your venture as successful and sustainable as possible.

1. Use a Local Payroll Service

Payroll can be a difficult thing to manage when you open offices in Hong Kong, as your new employees will need to be paid in their own currency. This can be even more difficult if you aren’t planning to have a local structure there. Handling inquiries from your employees regarding payroll can also be tough if you aren’t fluent in the native language.

Furthermore, if you choose to set up a Representative Office in China as opposed to a Joint Venture or WFOE, then you won’t be permitted to handle the payroll of your employees yourself. Because this is a common need for foreign business entities, there are a number of trusted Invoicing Solutions in Hong Kong for you to look into.

2. Understand the Culture

When you plan to conduct business in any foreign country, it is a good idea to brush up on the local culture and customs. This is especially true in places like Hong Kong where there is an emphasis on respect and a distinct hierarchical structure to the business world.

Something as simple as neglecting to stand up when a superior enters the room, particularly in regards to your elders, can be a major faux pas. Make sure that you are well versed on the long-standing tradition of gift giving in business and that you are always dressed accordingly. Failing to show proper respect to those whom you deal with in business can be detrimental to the success of your expansion to Hong Kong.

3. Research the Market

This is an important step to take when you are planning an international expansion of any kind, but since the culture in the East can be so different to that of the West, it is important to do the right research ahead of time so as to better ascertain the compatibility of your product or service with the local market in Hong Kong. If you need to make any adjustments to the way your business is marketed and branded, it is best to do so well before opening your doors in your new location.

It is a good idea to perform a SWOT analysis for your business and how it will perform in Hong Kong. Doing so will allow you to make alterations to the way your business operates in order to ensure that it will have the best chance for success.