Hong Kong as a Regional Headquarters Hub: Growth in Foreign Companies and Strategic Expansion Across Asia
- 2 hours ago
- 3 min read
Hong Kong continues to strengthen its position as a leading regional headquarters hub in Asia. The latest 2025 data confirms sustained growth in the number of overseas companies establishing a presence in the city, alongside a steady increase in regional headquarters operations.
For multinational enterprises evaluating their Asia Pacific strategy, Hong Kong remains a commercially strategic base for coordination, capital access and cross-border expansion.
Rising Number of Overseas Companies in Hong Kong
The number of companies in Hong Kong with parent companies located outside the city reached 11,070 in 2025. This represents continued growth from 9,040 in 2023 and 9,960 in 2024.
At the same time, the number of regional headquarters established in Hong Kong increased to 1,510 in 2025, up from 1,340 in 2023 and 1,410 in 2024.
This upward trajectory demonstrates confidence among international corporations in Hong Kong’s long-term business environment, regulatory framework and regional connectivity.
Top Origin Countries of Parent Companies
Hong Kong’s international business community is diverse, with strong representation from major global economies.
The top five locations of parent companies in 2025 were:
Chinese Mainland: 3,090 companies
United States: 1,550 companies
Japan: 1,550 companies
United Kingdom: 770 companies
Singapore: 590 companies
The growth in representation from these jurisdictions highlights Hong Kong’s continued relevance as both a gateway to Mainland China and a coordination hub for broader Asia Pacific operations.
Why Multinationals Choose Hong Kong
The survey identifies five primary factors that make Hong Kong attractive to international businesses:
Simple tax system and low tax rates
Strategic geographical location
Access to Chinese Mainland and international or regional markets
Free port status
Free flow of information
These structural advantages create operational efficiency and regulatory clarity, both of which are essential for regional headquarters functions.
Hong Kong’s territorial tax system, absence of VAT and straightforward corporate tax regime remain commercially significant for global groups seeking tax certainty.
Major Lines of Business Operating in Hong Kong
The leading business sectors for overseas companies in Hong Kong reflect its diversified commercial base:
Import and export trade, wholesale and retail
Financing and banking
Professional, business and education services
Transportation, storage and courier services
Information technology services
This mix illustrates that Hong Kong’s role extends beyond financial services alone. It functions as a logistics platform, services centre and digital operations hub for multinational enterprises.
From Startups to Regional Headquarters
Hong Kong’s corporate landscape is not limited to established multinationals. Its startup ecosystem has also experienced steady growth.
Between 2023 and 2025:
The number of startups increased from 4,257 to 5,221
Startup employment rose from 16,453 to 19,753
The top five startup sectors mirror broader economic strengths:
Financial Technology
Information, Computer and Technology
Biotechnology
Education and Learning
Health and Medical
This alignment between startup growth and multinational activity strengthens Hong Kong’s innovation pipeline. Early-stage companies can scale within a market that already hosts regional decision-makers, financial institutions and professional services providers.
International Founder Participation
Hong Kong’s startup founder base remains internationally diverse.
67% of founders are Hong Kong locals
33% are non-local founders
1% are returnees
Among non-local founders, the largest proportion originates from Mainland China at 52%, followed by the United Kingdom, the United States, France and Australia.
This international participation reinforces Hong Kong’s dual function as both a regional launchpad and a global business connector.
Strategic Implications for Asia Pacific Expansion
For multinational corporations, the 2025 data highlights several key considerations:
Hong Kong continues to attract headquarters-level decision-making functions
The city remains deeply integrated with Mainland China while retaining international commercial standards
The growth in startup activity strengthens sector innovation and talent availability
Access to regional markets remains a core strategic advantage
As businesses expand across Asia Pacific, regional headquarters structures must be carefully aligned with tax planning, transfer pricing policies, employment law compliance and regulatory reporting requirements.
Early structuring decisions can significantly influence long-term operational efficiency and risk management.
How Woodburn Can Support Regional Headquarters and Expansion Planning
Woodburn advises multinational enterprises, investors and growth-stage businesses establishing or expanding regional headquarters operations in Hong Kong.
Our services include:
Cross-border tax planning and compliance
Governance and regulatory compliance support
Accounting, payroll and financial reporting services
As Hong Kong continues to grow as a regional headquarters hub in 2025, structured planning and disciplined compliance remain essential to protecting enterprise value and enabling sustainable regional growth.
Woodburn Accountants & Advisors is one of China and Hong Kong’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.
