5 Things Western Entrepreneurs Should Know Before Doing Business in Hong Kong

Opinions expressed by Entrepreneur contributors are their own. Key Takeaways Understand that relationships come before contracts and that many of Hong Kong’s best-known companies are still controlled by families, so you need to know who really makes the decisions. Entrepreneurs should also understand that doing business in Hong Kong is not the same as doing business in mainland China. The laws, regulations and ways of working are different. Plan for the cost of being in Hong Kong, invest in local talent, and think in decades — not quarters — as Hong Kong rewards those who stay. More overseas companies are operating in Hong Kong than ever before. Government figures show a record 11,070 companies with parent companies outside the city in 2025, up 11% in a year, including 1,550 with U.S. parents. And Boston Consulting Group’s latest Global Wealth Report found that Hong Kong has overtaken Switzerland as the world’s largest cross-border wealth hub. My family has been in business here for four generations, and I have watched many Western companies arrive. The ones that struggle are rarely let down by the numbers. More often, they arrive with the wrong assumptions about how business works here. These are the five things I would tell any Western entrepreneur before they start. 1. Relationships come before contracts Hong Kong has an excellent legal system, and contracts here are taken seriously. But a contract is usually the last step, not the first. Most of the deals I have seen succeed began with an introduction from someone both sides trusted, followed by several meals and conversations before anyone discussed terms. Western founders sometimes see this as slow. I see it as due diligence done in person. Trust takes a long time to build and surprisingly little time to lose, so it pays to invest in it early. If you can, ask someone respected locally to introduce you, and follow up in person rather than relying on email. 2. Find out who really makes the decision Many of Hong Kong’s best-known companies are still controlled by families, and the person across the meeting table is not always the person who decides. In some firms, the real decision is made quietly by a senior family member or a small inner circle before the formal meeting takes place. In my own family’s business, we chose to bring in outside professionals to run the company rather than rely on family members. Many families here have done the same, but ownership and influence often stay with the family. Ask early how decisions are made and who needs to be comfortable with them. It can save you months. It also helps to know which generation you are dealing with. Many younger family members were educated overseas, as I was, and are often open to new ideas and new partners. They will usually still want the senior generation’s blessing before they commit. 3. Hong Kong is a gateway to China, not a copy of it Hong Kong runs on common law, its currency is freely convertible, capital moves in and out freely, and English is an official language. That makes it easy for Western companies to set up here. It is also why mainland Chinese companies are arriving in growing numbers. The number of companies with mainland parents rose 18% last year to 3,090. But doing business in Hong Kong is not the same as doing business in mainland China. The laws, regulations and ways of working are different. If the mainland or the wider Greater Bay Area is part of your plan, hire people who understand both systems and, ideally, speak Cantonese and Mandarin as well as English. It is also worth speaking to InvestHK, the government’s investment promotion agency, before you arrive. It helped a record 560 companies set up or expand in the city in 2025, and its advice is free. 4. Plan for the cost of being here, and invest in local talent Hong Kong is not a cheap place to operate. Demand for offices is rising again, and CBRE reports that rents in Central have risen nearly 16% so far this year. In AmCham Hong Kong’s 2026 survey, 71% of members said the high cost of living was putting off foreign talent. Rather than relying on expensive expatriate packages, hire and train good local people. I have spent 30 years funding education, and I have seen what talented young people can achieve when someone gives them an opportunity. The talent pool is also growing. The government’s talent schemes, including the Top Talent Pass, have approved more than 410,000 applications, according to figures given to the Legislative Council earlier this year. In my experience, companies that invest in their Hong Kong team tend to stay longer and do better. 5. Think in decades, not quarters Hong Kong rewards those who stay. I have seen the city written off during the Asian financial crisis, the SARS outbreak and the pandemic. Each time, the businesses that stayed and kept investing were well placed for the recovery. Local partners notice who stays through the difficult periods, and they remember. If you ever need to scale back, explain why and keep in touch with your partners. In AmCham’s latest survey, 92% of members said they had no plans to move their headquarters out of the city. Come with a long-term plan and the patience to see it through. Hong Kong is open for business, and the opportunities are real. But success here depends as much on the relationships you build, and how long you are willing to stay, as on your business plan. Get those right, and Hong Kong can be one of the most rewarding places in the world to build a company. Key Takeaways Understand that relationships come before contracts and that many of Hong Kong’s best-known companies are still controlled by families, so you need to know who really makes the decisions. Entrepreneurs should also understand that doing business in Hong Kong is not the same as doing business in mainland China. The laws, regulations and ways of working are different. Plan for the cost of being in Hong Kong, invest in local talent, and think in decades — not quarters — as Hong Kong rewards those who stay. More overseas companies are operating in Hong Kong than ever before. Government figures show a record 11,070 companies with parent companies outside the city in 2025, up 11% in a year, including 1,550 with U.S. parents. And Boston Consulting Group’s latest Global Wealth Report found that Hong Kong has overtaken Switzerland as the world’s largest cross-border wealth hub. My family has been in business here for four generations, and I have watched many Western companies arrive. The ones that struggle are rarely let down by the numbers. More often, they arrive with the wrong assumptions about how business works here. These are the five things I would tell any Western entrepreneur before they start. 1. Relationships come before contracts Hong Kong has an excellent legal system, and contracts here are taken seriously. But a contract is usually the last step, not the first. Most of the deals I have seen succeed began with an introduction from someone both sides trusted, followed by several meals and conversations before anyone discussed terms.