Government Support, Incentives, and Funding for Australian Companies Expanding to Hong Kong
- Kristina Coluccia
- Feb 4
- 3 min read
Expanding into international markets can unlock new growth opportunities for Australian businesses. Among the prime destinations in Asia, Hong Kong stands out due to its strategic location, pro-business policies, and strong economic ties with Australia. For companies considering expansion, understanding the landscape of government support, incentives, and funding is crucial. This guide explores the various assistance programs available to Australian companies eyeing a presence in Hong Kong.
Why Expand to Hong Kong?
Hong Kong offers a gateway to Asia and China, supported by low taxation, a robust legal system, and an open economy. It is ranked consistently as one of the world's freest economies, and its proximity to mainland China makes it a hub for regional operations.
Key Advantages:
Low corporate tax rate (8.25% to 16.5%)
Strategic location in Asia-Pacific
Strong IP protection and legal system
Free flow of capital and talent
Comprehensive Double Taxation Agreement (DTA) between Australia and Hong Kong
Australian Government Support for Businesses Expanding Overseas
Australian companies looking to expand abroad can benefit from various government initiatives, including trade agreements, funding programs, and tax incentives.
Export Market Development Grant (EMDG)
This is a key financial assistance scheme that reimburses eligible exporters for promotional activities in international markets.
Eligible Expenses:
Marketing and advertising overseas
Participation in trade shows and events in Hong Kong
Overseas representation and consultants
IP registration and market research costs
DFAT and Free Trade Agreements (FTAs)
The Department of Foreign Affairs and Trade supports exporters through FTAs, including the Australia-Hong Kong Free Trade Agreement (A-HKFTA). This agreement eliminates tariffs, facilitates service exports, and enhances investment security.
Hong Kong Government Incentives for Foreign Companies
Innovation and Technology Fund (ITF)
For Australian tech companies, the ITF supports R&D activities in collaboration with local institutions or partners.
ITF Schemes:
Enterprise Support Scheme (ESS)
Researcher Programme
Technology Voucher Programme (TVP)
Tax Incentives
Hong Kong offers various tax incentives to attract foreign companies:
Two-tier profits tax regime (first HK$2 million profits taxed at 8.25%)
No VAT, GST, or capital gains tax
Deduction for R&D expenditures
Bilateral Support and Networking Platforms
Australia-Hong Kong Business Chamber
A valuable network for Australian businesses to connect with peers and experts in Hong Kong, providing market insights and partnership opportunities.
Hong Kong-Australia Business Association (HKABA)
Operates in Australia and promotes bilateral trade, offering:
Events and seminars
Business matching
Advocacy and information exchange
Tips for Securing Government Support
Start Early: Begin planning your expansion well in advance.
Understand Eligibility Criteria: Each grant or incentive has specific criteria—review them thoroughly.
Leverage Networks: Join chambers and trade associations for up-to-date information and advocacy.
Develop a Market Entry Strategy: A clear, well-researched strategy enhances your chance of support and success.
Expanding into Hong Kong presents vast opportunities for Australian businesses. Through a combination of Australian and Hong Kong government support, companies can mitigate risks, reduce entry costs, and accelerate growth. From grants and incentives to strategic advice and networking platforms, the pathway is well-paved for determined businesses.
Are you interested in expanding your business to Hong Kong? Contact us to explore tailored support and expert guidance.
Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.
Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.
