Hong Kong Could Give Mexico Access to 87M Consumers: InvestHK

As Mexican companies look toward Asia to diversify their markets and supply chains, Hong Kong has emerged as an attractive entry point, offering a unique blend of Western legal frameworks and direct access to the Chinese mainland. According to Karla Loyo, Principal Consultant, Invest Hong Kong (InvestHK) Mexico, the territory offers a structured pathway for businesses ranging from agro-industrial exporters to fintech startups, supported by a government agency dedicated to facilitating every stage of the expansion process.

InvestHK, operating 34 global offices including one in Mexico, guides investors from planning to expansion. During the Take Your Business to Hong Kong event, Loyo explained that while the agency does not directly handle legal or accounting tasks, it connects companies with specialized service providers. This ecosystem helps businesses navigate local requirements, facilitating everything from banking and personnel movement to commercial networking.

According to Loyo, a central element of Hong Kong's appeal lies in the One Country, Two Systems policy. While the territory is part of China, it maintains an independent legal and economic framework based on Common Law, a heritage of its history as a British colony. This distinction provides a layer of transparency and familiarity for Western investors. The territory is ranked as the freest economy in the world and serves as a premier center for arbitration and intellectual property protection, factors that reduce the complexity of resolving commercial disputes compared to other Asian jurisdictions.

Financially, the region offers a simplified and competitive tax regime. There is no Value Added Tax (VAT), no tax on dividends or investments, and no global tax. Profit tax is set at 8.25% for the first HK$2 million in earnings. Furthermore, the Hong Kong dollar is pegged to the US dollar, providing monetary stability, and the territory acts as the largest global offshore center for the Renminbi, facilitating currency exchange and capital flow. For Mexican companies, particularly SMEs that may face barriers with traditional banking, Hong Kong’s fintech ecosystem, hosting over 1,000 fintech companies, offers alternative and immediate operational solutions.

Loyo described Hong Kong as a hyper-connected hub, with an airport that hosts over 130 airlines. "To put it in perspective, while Mexico hosts no more than 45 airlines, Hong Kong operates with 130 international carriers. It is a logistics powerhouse that consistently tops the list of the world's busiest air cargo hubs,” she added.

According to Loyo, this connectivity is vital for the integration of Hong Kong into the Greater Bay Area (GBA), a development zone that links Hong Kong and Macao with nine municipalities in Guangdong province. This region alone represents a market of approximately 87 million consumers with high purchasing power, rivaling the economic bays of Tokyo and San Francisco.

For the Mexican export sector, specifically the agro-industry, the opportunities are substantial. Hong Kong imports approximately 95% of what it consumes due to limited land for manufacturing or agriculture. This reliance on imports creates a constant demand for fresh produce, beverages, and meat products, which can enter the territory free of tariffs, with the exception of alcoholic beverages exceeding 30% ABV. 

Additionally, the territory serves as a re-export hub, where goods are received and subsequently distributed to mainland China and other key Asian markets such as Korea and Japan. "Companies often approach us imagining they will sell billions of products in China, but the reality of that market is incredibly complex. They tend to dismiss Hong Kong because of its 7.5 million inhabitants, yet despite its size, it remains the strategic gateway that offers direct access to the world's most important market," she added.

Loyo emphasizes that the territory is not just a commercial destination but a platform for technological incubation and wealth management. With government funding programs available for companies that establish a physical presence and hire local staff, Hong Kong actively encourages the development of sectors like biotech, AI, and green energy. By leveraging these incentives and the region's strategic location, Mexican companies can effectively bypass many of the cultural and linguistic barriers associated with doing business directly in mainland China, using Hong Kong as a stable, English-speaking launchpad for broader Asian operations.

Esly Cuevas, Global Affairs Partner and Director of Diplomacy, LHO Global, noted that investing in Hong Kong presents a strategic opportunity for Mexican companies seeking to expand their footprint in Asia, due to its robust financial infrastructure, business-friendly regulations, and gateway position to mainland China make it an ideal hub for trade, investment, and innovation. "Partnering with an experienced internationalization firm is crucial to navigate local regulations, cultural nuances, and market entry strategies, ensuring a smooth and successful expansion,” she added. 

Constituting a Company in Hong Kong

During the event, Paola Sánchez, Senior Associate, Hawksford, detailed the operational simplicity of establishing a presence in the territory. Unlike other jurisdictions that require significant capital or residency, a Hong Kong Limited Liability Company (LLC) can be incorporated remotely with as little as 1 HKD (US$0.13). This structure offers flexibility, allowing a single entity to conduct diverse commercial activities without restrictive categorization.

Sánchez highlighted that while traditional banking can be challenging for Latin American SMEs due to rigorous compliance checks, the fintech ecosystem provides a rapid solution. "We can incorporate a company in two weeks and have a multi-currency digital bank account operational shortly after, all without the director ever stepping foot in Hong Kong," she explained.

On the fiscal front, the system is designed to support business continuity. Hong Kong operates on a territorial tax basis, meaning only income sourced within the territory is taxed. The compliance burden is minimal, consisting of a single annual tax return and a mandatory audit. Notably, the payment schedule is structured to benefit corporate liquidity. "The Hong Kong government acts as a partner to business. If you pay taxes in January 2027 for the fiscal year ending in December 2025, it is because the system is designed to facilitate cash flow and keep companies operating efficiently," Sánchez noted, contrasting this with the administrative complexity often faced in Latin American markets.