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Among every nation and city on the global map, there is a never-ending, intense battle to win more businesses and subsequent fiscal gains, with the world's leading hubs rankings changing every year. While long-established powerhouses such as London and New York continue to dominate, an Asian momentum is already reshaping the leaderboard. Hong Kong, navigating a period of uncertainty since 2022, has reclaimed its place among the world's most attractive cities for businesses.

The latest Kearney 2025 Global Cities Report now ranks Hong Kong 7th worldwide, up two positions since 2024, outranking Los Angeles and Shanghai, cementing its place alongside giants like London, which has held second place for six consecutive years.

Interestingly enough, this renewed recognition comes at the same time as Hong Kong has been recording unprecedented growth in new company formations. By the end of 2025, the city has reached an all-time high of 1,557,103 registered companies, representing a net increase of 96,609 local companies compared to 2024.

Together, these figures confirm the assumption that Hong Kong commercial activity accelerated across multiple sectors, with more firms now taking the city seriously when choosing a jurisdiction to start a business. The city's allure has now risen to the pre-COVID-19 pandemic levels, with Hong Kong re-emerging as a major force in the race for global business hub leadership.

A Challenging Global Environment for Businesses

Across most parts of the world, companies are operating in an increasingly complex and unpredictable climate, with rules becoming heavier every year. The GDP growth, often perceived as one of the key metrics defining the current ease of doing business, is expected to slow down across many major economies. Coupled with tighter regulatory oversight, looming policy uncertainty, persistent inflation, geopolitical tensions, and other external factors, companies are facing reduced access to capital and greater complexity in doing business.

Importantly, regulatory regimes have become more demanding everywhere across the globe. Heightened compliance requirements, increasing reporting standards, and cross-border rules all made businesses' lives no easier.

At the same time, costs of doing business rose simultaneously, with taxes, interest rates, and other prices rising in tandem, significantly narrowing margins and limiting room for reinvestment, especially for small and medium enterprises (SMEs).

Within this broader global context, entrepreneurs are becoming highly selective as they seek a country or city that makes the most sense, relying less on the instinct to find the 'sweet spot'. In many cases, it all comes down to identifying a jurisdiction offering lasting stability, regulatory clarity, competitive costs, and enduring market access with minimal uncertainty.

In an era of caution and structural change, the growing attractiveness of select destinations is not an accident but a result of a major global reset, where yesterday's practical option is not always today's best choice.

Hong Kong Becomes Even More Attractive

Hong Kong's growing magnetism is not a matter of chance; rather, it is driven by its long-standing structural advantages that continue to resonate and attract international investors and entrepreneurs.

The law in Hong Kong remains based on the principles of English common law, providing a familiar and transparent framework for foreigners. Non-compliance with misunderstood rules can carry multi-million-dollar fines; in contrast, facing common law lowers friction and keeps such accidents rare. That level of clarity reassures confidence in Hong Kong even amid shifting cities' leadership.

Notably, the city is now home to 72 billionaires, ranking 3rd globally by billionaire population, ahead of many long-established financial centres, including London. With only eight billionaires recorded in 1997, the city has since grown almost 10 times, reflecting the city's consistently supportive ecosystem for wealth creation and preservation.

Ease of incorporation remains yet another powerful factor behind Hong Kong's allure. The city has no restrictions on foreign ownership, a company can be incorporated entirely online within a matter of days, and there is no minimum capital requirement for most legal entities. In reality, many underestimate the importance of such ease of access, while in fact it streamlines entry and allows one to set up quickly and efficiently.

As tax systems around the world keep getting more complex, Hong Kong continues to rank among the world's most tax-friendly jurisdictions. Beyond the general progressive corporate income tax, which remains comparatively low, there are no taxes on dividends, capital gains, withholdings, interest, or foreign-sourced income. In a world of continuous discussions about raising the minimum tax rates, this predictable tax environment is certainly worth its weight in gold, attracting entrepreneurs and multinational groups of companies across a broad range of sectors.

Geographically, Hong Kong is situated perfectly: at the doorstep of mainland China and within close reach of other major Asian economies. As uncertainty bites elsewhere, the city offers entrepreneur-friendly policies for foreigners deciding to relocate, a stable economy with three consecutive years of growth, and a world-class financial and banking system with no foreign-exchange controls.

This increasingly rare combination in today's market explains why Hong Kong continues to attract more company incorporations even as other markets lose momentum.

The Complexity Behind Incorporation Success

Despite all the advantages, Hong Kong company registration was never a shortcut. While the incorporation process itself is fast, the regulatory compliance, corporate structuring, ongoing reporting, and access to basic banking services are more demanding and require specialist know-how for non-residents and cross-border groups seeking to avoid negative long-term implications and structure with future-proofing in mind.

Attempting to navigate these requirements without expert guidance, therefore, can expose businesses to unnecessary risks. What seems simple can become time-consuming and opaque, especially when cross-border considerations are involved. At this point, specialist advisory support from firms such as Inteliumlaw becomes essential to set up a business in Hong Kong with legal confidence. With a strong track record in cross-border legal structuring, such consultants help businesses establish compliant structures that align legal, tax, and operational goals together, reducing disruption risk amid heightened scrutiny and shifting global business hub rankings.

Alongside London, which continues to rank the second highest among the world's leading business hubs, Hong Kong stands out as another highly credible base for starting a business. Yet, a business's success in Hong Kong will depend more on a sound structure built with meticulous legal precision rather than merely making the right choice. Otherwise, in a world where uncertainty is the new norm, Hong Kong is doubling down on what other hubs lack: predictability, which has now become a 'Holy Grail' among international businesses with long-term ambitions.