Hong Kong S.A.R : The Hong Kong Companies Registry recently announced the incorporation of the 1,500,000th Hong Kong company, marking a milestone in Hong Kong company incorporation activity. The sharp rise in newly registered companies in Hong Kong is reflective of positive business sentiment and growth of the local economy, reports GuideMeHongKong.com.

Further analysis by GuideMeHongKong.com indicates that on an average, close to 11,500 companies were registered on a monthly basis during the first half of 2010. There has been a total of 92,466 new Hong Kong company formations this year – a 31% increase as compared to the corresponding period in 2009. There were a total of 350 new foreign company registrations in Hong Kong during H1, 2010 – a 24.5% increase as compared to the corresponding period in 2009. The Hong Kong Companies Registry confirms that 7,986 new foreign company formations were recorded from January 2010 until July 2010.

Jacqueline Low, the Director of Corporate Services at Janus Corporate Solutions – the company that runs the GuideMeHongKong.com site opines that the positive statistical data is indicative of growing business confidence in the Asian market. Asia’s accelerated pace of economic recovery with China at the helm has resulted in a veritable shift of economic power from West to East. The common business sentiment that seems to be prevailing is that China-based businesses are performing and will continue to perform far better than those located in US or Europe. With Asian economies presenting a better business growth potential, there is a rampant growth of companies in business friendly and low tax jurisdictions such as Hong Kong.

“Hong Kong is the perfect regional base for foreign entrepreneurs and enterprises who wish to enter the Asian market. By setting up a Hong Kong company you can avail of tax gains and reap the benefits of the Hong Kong-China preferential trade agreement. With the West facing challenging economic conditions, all eyes are now on Asia. Hong Kong’s second quarter economic growth figures are further evidence of the region’s upbeat economic performance. Hong Kong’s GDP growth of 6.5% during the second quarter of 2010 was stronger than anticipated. The buoyant economy has contributed to the steady rise in the number of Hong Kong company formations and the number of foreign enterprises setting up shop here,” said Ms. Low.

Hong Kong’s position as the second largest FDI recipient in Asia is reflective of its popularity as a regional base for foreign companies and foreign investment. According to the World Investment Report 2010, released by the United Nations Conference on Trade and Development (UNCTAD), FDI inflows into Hong Kong during Q1 2010 was US$20billion, which translates into a 72% increase as compared to the first quarter of 2009.

“With the ascent of Asia, especially China, investors will be encouraged to put in more money here than other parts of the world. Hong Kong being a key financial and business hub in the Asia-Pacific region will definitely see more company formations in the months to come,” added Ms. Low.

More information about company incorporation in Hong Kong can be found at http://www.guidemehongkong.com/