Hong Kong: Asia’s #3 Startup Hub

Where you start a new venture matters; location influences everything, from how quickly you can register a company to whether investors are willing to back your idea. 

That’s why Intuit QuickBooks created the Asia Startup Index to pinpoint the countries that give new businesses their best chance to thrive. The study looked at 17 data points, including internet speed, workforce skills, cost of living, tax rates, and access to funding—critical factors in a strong startup ecosystem. These metrics reveal which countries provide the strongest foundations for new businesses—covering everything from digital infrastructure and talent readiness to affordability and market growth.

This article highlights the findings of the study, with a spotlight on Hong Kong SAR, which ranked #3 overall in Asia—right behind Singapore (#1) and China (#2). Keep reading to find out how Hong Kong performed across all the categories in this study, and what the results mean for entrepreneurs looking to launch their business here.

• Hong Kong: Key Insights
• The Best Countries in Asia to Start a Business
• Hong Kong’s Rank for Startup Factors
• Hong Kong’s Internet Speed & Connectivity
• Hong Kong’s Talent Pool & Skills
• Hong Kong’s Business Landscape
• Hong Kong’s Cost of Living for Startups
• Hong Kong’s Happiness & Work-Life Balance
• Why Hong Kong is a Startup Hub
• What the Experts Say
• Methodology

Hong Kong: Key Insights

Ranked #3 in the Asia Startup Index, Hong Kong stands out for its investor appeal, low taxes, and world-class financial ecosystem—offering a rare mix of global connectivity and access to capital.

• #3 Startup Hotspot in Asia: Hong Kong scored 64.55/100 overall.
• Business Landscape (77.11/100, 1st place): Hong Kong ranked as the #1 business landscape in Asia thanks to factors such as its high FDI (28.8%), healthy business density (21 new firms per 1,000 people), short time to start a business (1.5 days), low inflation (1.7%), and a predicted GDP growth in 2026 of 2.5%. 
• Internet Speed (92.0/100 2nd place): Hong Kong ranked 2nd overall for internet speed with a speed of 323.9 Mbps—almost 3x faster than the regional average of 133.2 Mbps.
• Talent Pool (64.55/100, 8th place): This category considered a number of metrics, with Hong Kong landing in 8th place overall. Hong Kong has an average monthly net salary (USD $3,649) that’s more than double the regional average (USD $1,056) and 74% of its workforce holds advanced education qualifications. 
• Cost of Living (94.10/100, 23rd place): Hong Kong is the second most expensive place to live in Asia, just behind Singapore (which had a Cost of Living score of 97.20).
• Happiness (41.70/100, 13th place): Hong Kong scored above average for happiness and quality of life.

The Best Countries in Asia to Start a Business

To spotlight the most promising regions for entrepreneurs, Intuit QuickBooks ranked 24 countries across business and lifestyle factors. The top three spots were claimed by Singapore, China, and Hong Kong in Asia for startup hotspots.

Hong Kong is a market primed for success, offering a distinctive blend of connectivity, skilled talent, and a well-developed business environment. It offers significant advantages in terms of business landscape and access to global markets, making it one of the most competitive and attractive startup hubs in the region. For founders looking to scale internationally, Hong Kong’s strategic position and robust support systems make it a compelling choice.

Hong Kong’s Rank for Startup Factors 

For this study, we conducted an analysis of 17 key indicators that can contribute to the success of startup businesses in that country. These indicators were then grouped into five categories:

1. Internet Speed: Fast and reliable internet connectivity makes a huge difference when starting a business, especially when you’re relying on remote collaboration. This study measured the average broadband speed (Mbps) across 24 countries in Asia.  

2. Talent Pool: Three indicators were measured as part of this category:

• AI readiness: A country’s preparedness for AI adoption gives startups an edge by making advanced tools and technologies easier to access and integrate.
• Workforce Advanced Education (%): A highly educated workforce gives startups access to skilled talent—driving innovation, efficiency, and faster growth.
• Average monthly net salary (USD): Higher wages indicate stronger purchasing power and talent attractiveness.

3. Business Landscape: We measured a number of factors that reveal how smooth (or challenging) it is to run a company day-to-day. These factors included:

• FDI net inflows (% GDP): More foreign investment suggests an open, attractive economy.
• Business density (new firms per 1 000): More new firms signal a dynamic start‑up scene.
• Predicted GDP growth 2026 (%): Faster growth suggests expanding markets.
• Private credit (% GDP): Higher credit depth indicates a well‑developed banking sector.
• Time to start business (days): Fewer days mean less bureaucratic delay.
• Cost to start business (% GNI): Lower costs ease entry.
• Corporate tax rate (%): Lower taxes reduce ongoing liabilities.
• Prime lending rate (%): Lower interest rates improve access to finance.
• Inflation rate (%): Low inflation preserves purchasing power and reduces uncertainty.
• Unemployment rate (%): Lower unemployment implies a strong labour market.

4. Cost of Living: High costs shorten the runway for early-stage startup ventures, while affordable markets give founders more breathing room to experiment and scale. For this category, we considered the following:

• Weekly rent (USD): Lower rents reduce start‑up operating costs.
• Cost of living index: Lower living costs stretch founders’ runway and wages.

5. Quality of Life: A happier workforce is more engaged and productive, and founders thrive when they can balance personal wellbeing with professional success. 

Next, we’ll reveal how Hong Kong scored within these categories, and explain in greater detail how these metrics affect startup businesses.

Hong Kong’s Internet Speed and Connectivity: #2 in Asia

Hong Kong ranked in second place in our study for internet speed, with an average broadband speed of 323.9 Mbps. For context, Singapore ranked #1 with the fastest internet in Asia (393.2 Mbps), while Pakistan recorded the slowest speed in the region (16.23 Mbps).

Fast and reliable connectivity is essential for startups, powering everything from real-time collaboration and cloud services to e-commerce and customer engagement. Hong Kong’s position as #2 in Asia for internet speed underlines its reputation as a highly connected market, making it especially attractive to founders building digital-first businesses in this region.

Hong Kong’s Talent Pool and Skills: #8 in Asia

Ranking #8 in Asia for Talent Pool & Skills, Hong Kong offers a strong balance of education, expertise, and competitive salaries that position it as a regional hub for skilled professionals.

Key insights:

• Workforce with advanced education: 74% of workers in Hong Kong are tertiary educated (slightly above the regional average of 73.30%)
• Average monthly income: Hong Kong offers competitive compensation for talent, with an average monthly income of USD $3,649—second only to Singapore (USD $4,443.30) and well above the regional average of USD $1,056.

A skilled and competitively paid workforce is a powerful driver of startup success, enabling companies to innovate, scale quickly, and attract global investment. This combination of education and income positions Hong Kong as a regional hub for high-value talent and emerging technology.

AI Readiness

AI readiness data was unavailable for Hong Kong, and therefore excluded from its average Talent score.

Workforce with Advanced Education: #16 in Asia

A highly skilled workforce is vital for startup innovation and scalability. About 74% of Hong Kong’s workers hold tertiary qualifications, which is slightly above the regional average of 73.30%.

This depth of education means startups can access talent capable of driving technological growth, adopting new tools, and building globally competitive products.

Average Monthly Income: #2 in Asia

Average salaries are a key indicator of both purchasing power and talent competitiveness. At USD $3,649 per month, Hong Kong ranks second in Asia—just behind Singapore ($4,443) and well above the regional average of $1,056.

While higher wages can increase operating costs, they also signal a thriving market with strong consumer spending and talent willing to invest their skills locally. For startups, that balance supports both growth and stability.

Hong Kong’s Business Landscape: #1 in Asia

Hong Kong ranks #1 in Asia for its Business & Startup Environment, with a score of 77.11/100, ahead of Singapore (74.52) and Georgia (68.04).

Key insights:

• FDI inflows: #1 in Asia, with 28.8% of GDP (regional average: 4.92%)
• Business density: #1 in Asia, with 21 new firms per 1,000 people (regional average: 3.57)
• Private credit: #1 in Asia, with 230.9% of GDP (regional average: 88.69%)
• Time to start a business: Joint #2 (alongside Singapore) in Asia, with 1.5 days (regional average: 20.77 days)

Hong Kong’s top ranking reflects its position as a world-class financial hub with exceptional credit depth, strong investor confidence, and a streamlined regulatory system that makes business formation fast and affordable.

Foreign Direct Investment (FDI) Inflows: 28.8% of GDP

Hong Kong ranks #1 in Asia for FDI inflows, with foreign investment amounting to 28.8% of GDP, compared with a regional average of 4.92%.

This strong performance underscores Hong Kong’s global reputation as an international business gateway, providing startups with access to capital, networks, and partnerships that drive long-term growth.

Business Density: 21 New Firms per 1,000 People

Entrepreneurship is thriving in Hong Kong. With 21 new firms per 1,000 people, the city’s business density is the highest in Asia and more than six times the regional average of 3.57.

This vibrant ecosystem reflects high confidence among entrepreneurs and a culture that supports innovation and competition.

Predicted GDP Growth 2026: 2.5%

While Hong Kong leads in most business metrics, its projected GDP growth of 2.5% for 2026 falls below the regional average of 3.66%.

This slower growth outlook reflects a mature, service-based economy—but also one with strong stability, efficient regulation, and world-class infrastructure that continues to attract investors and startups alike.

Private Credit: 230.9% of GDP

Hong Kong’s financial system is one of the most developed in Asia, with private credit equal to 230.9% of GDP, compared with a regional average of 88.69%.

This depth of credit availability provides startups with easy access to financing, supporting expansion, innovation, and cross-border investment.

Time to Start a Business: 1.5 Days

It takes just 1.5 days on average to start a business in Hong Kong—placing it joint #2 in Asia alongside Singapore, and well ahead of the regional average of 20.7 days.

This efficiency reflects Hong Kong’s streamlined regulations, digital-first registration process, and government support for new enterprises.

Cost to Start a Business: 0.5% of GNI

Starting a business in Hong Kong costs only 0.5% of gross national income (GNI)—far below the regional average of 7.66%.

This low barrier to entry enables entrepreneurs to formalize operations quickly and dedicate more resources to innovation and scaling.

Corporate Tax Rate: 16.5%

Hong Kong’s corporate tax rate of 16.5% remains among the lowest in Asia, below the regional average of 22.3%.

This pro-business tax environment continues to attract startups, foreign investors, and multinational corporations looking for regional headquarters.

Lending Rate: 5.7%

With an average lending rate of 5.7%, Hong Kong offers affordable borrowing compared to the regional average of 9.4%.

Accessible credit and competitive loan rates make it easier for startups to secure funding and reinvest in growth.

Inflation Rate: 1.7%

Inflation in Hong Kong is well-controlled at 1.7%, significantly below the regional average of 4.4%.

Stable prices reduce uncertainty for business planning and help startups maintain predictable operating costs.

Unemployment Rate: 2.8%

At 2.8%, Hong Kong’s unemployment rate is nearly half the regional average of 4.35%.

A strong, active workforce supports steady consumer demand and provides startups with reliable access to skilled labor.

Together, these factors cement Hong Kong’s reputation as Asia’s leading hub for entrepreneurship and investment.

Hong Kong’s Cost of Living for Startups: #23 in Asia

To assess how affordable it is to set up a business in Hong Kong, the Asia Startup Index Study analyzed data on weekly rent and the Cost of Living Index.

Key insights:

• Average weekly rent: #2 in Asia with USD $525 (regional average: $145.75)
• Cost of Living Index: #2 in Asia with 72.2/100 (regional average: 36.93/100)
• Ranking: #23 out of 24 for overall affordability

Affordability is a key challenge for startups in Hong Kong. High property and living costs can strain budgets and shorten the runway for early-stage businesses. However, these costs also reflect Hong Kong’s position as a global financial hub, offering access to world-class infrastructure, talent, and connectivity.

Average Weekly Rent: $525 USD

Hong Kong’s average weekly rent of USD $525 is more than three times the regional average of $145.75 and second only to Singapore ($715).

This high rental cost reflects the city’s premium location, advanced infrastructure, and limited real estate space. For startups, it underscores the importance of cost-efficient planning—whether through co-working spaces, hybrid operations, or flexible office arrangements.

Cost of Living Index: 72.2/100

With a Cost of Living Index of 72.2/100, Hong Kong ranks as the second most expensive city in Asia, just behind Singapore (85.3/100).

Everyday expenses—from housing and transport to food and services—are significantly higher than in most Asia-Pacific markets. For startups, this means balancing the city’s strategic advantages with the reality of higher operating costs when budgeting for teams and long-term growth.

Hong Kong’s Quality of Life: #13 in Asia

Key insights:

• Hong Kong ranked #13 in Asia for quality of life with a score of 41.70/100.
• For the happiness index score Hong Kong scored 5.5/10.

Hong Kong ranked 13th in Asia for quality of life, with a happiness index score of 5.5/10 placing it in the middle of the regional pack—below leaders such as Singapore and Taiwan, but ahead of many lower-ranked economies.

For startups, this balance presents both opportunities and challenges. While Hong Kong excels as a global financial centre, its high costs and fast-paced environment can affect work-life balance. However, world-class infrastructure, safety, and services help maintain a high quality of life overall.

For entrepreneurs and their teams, this means Hong Kong offers a dynamic professional environment, but balancing work with personal wellbeing may require more conscious effort than in some other Asian hubs.

Why Hong Kong is a Startup Hub

Hong Kong stands out as one of Asia-Pacific’s premier startup hubs, ranking #3 overall in the Asia Startup Index. Its top position for business environment, world-class internet speed, and strong financial ecosystem make it especially attractive for founders seeking global connectivity and investor confidence. With low taxes, abundant access to capital, and a highly educated workforce, the city provides a fertile ground for ambitious ventures.

That said, startups must also weigh the challenges of Hong Kong’s high cost of living and relatively modest growth outlook compared to some emerging markets. Still, for entrepreneurs who value international reach, a stable economy, and a dynamic business community, Hong Kong offers a compelling base in the heart of Asia.

Ready to launch your business in Hong Kong? Discover how Intuit QuickBooks Online can help simplify accounting, cash flow, and compliance for your startup.

If you’re curious to see how Hong Kong compares with other leading hubs across Asia, you can explore the reports for Malaysia, Singapore, and the Philippines. You can also visit our startup guides to learn more about starting a business in Hong Kong.

What the Experts Say

Many factors can affect a country’s business startup worthiness. For additional insight, we asked Eric Chan, Chief Consultant at Reachtop KSHK Group and Intuit QuickBooks Online Master Trainer & ProAdvisor, for his thoughts.

“Hong Kong’s top business landscape ranking shows how effortlessly startups can launch and scale—1.5 days to start a business, low taxes, and unmatched investor access make it a magnet for agile entrepreneurs.

With internet speeds topping 323 Mbps, Hong Kong gives startups the digital backbone to move fast, collaborate globally, and stay competitive in Asia’s high-speed innovation race.

From high workforce education to the region’s second-highest salaries, Hong Kong offers global talent and investor confidence—proving it’s not just a gateway to Asia, but a growth engine in its own right.”

Methodology

The aim of this study was to help founders compare the ease and appeal of launching a business across Asia. Rather than focusing on just one aspect (like tax rates or venture capital), QuickBooks pulled together a broad basket of 17 indicators. These cover:

• Infrastructure: How fast and reliable your internet connection is (average broadband speed).
• Capital access: How much foreign investment a country attracts and how deep its banking sector is (FDI inflows and private credit as a share of GDP).
• Costs: Rent, cost of living, net salaries, corporate tax and lending rates, and the cost of starting a company.
• Business environment: How long it takes to register a company, how easy the process is, and expected economic growth.
• Talent and fundamentals: Workforce with advanced education, unemployment and inflation rates, happiness scores, and a government AI‑readiness rating.

We chose these factors because a healthy start‑up ecosystem needs both affordable overheads and access to talent, capital, and stable economic conditions.

How we standardized data indicators for comparison

Each indicator (Mbps, dollars, percent of GDP, number of days) was measured differently. To put them on the same footing we turned every value into a percentile score. Think of a percentile as a “score out of 100” showing how a country ranks against its peers: the higher the percentile, the better. For indicators where bigger numbers are good (like faster internet or more FDI), higher values got higher percentiles. For indicators where smaller numbers are preferable (like lower rent or taxes), we flipped the values so that a smaller cost results in a higher percentile. This way, “better” always translates into a higher score.

Treating all metrics equally

Rather than arbitrarily deciding that, say, broadband speed is twice as important as inflation, we simply averaged the percentile scores. Each of the 17 indicators counts the same towards the final score. If data for a country were missing (for example, Taiwan’s FDI figure or a recent lending rate for Laos), we averaged only the available metrics. This avoids penalizing countries for gaps in international data, but it also means scores for those countries are based on fewer inputs and should be interpreted cautiously.

Where does the data come from?

Most numbers come from recognized international sources such as the World Bank, IMF, Oxford Insights, UN Happiness Report, the Speedtest Global Index, and national statistics. For living costs and rents, we used Numbeo, which aggregates user‑submitted prices; this provides broad coverage but may not match official statistics. We always used the most recent year available (usually 2023–2024, 2024-2025) but note that for some indicators (like prime lending rates in Japan or Laos) the latest official data are a few years old. Corporate tax rates are headline statutory rates; actual liabilities can differ depending on incentives or sectors.

Reading the results

The final index produces a score between 0 and 100. A higher score means a country offers faster internet, more investment, lower operating costs, better talent supply and a more favorable regulatory climate, on average. Singapore leads the ranking thanks to world‑class digital and financial infrastructure, fast incorporation and abundant skilled workers. Malaysia is mid‑table, benefiting from low costs and a healthy banking sector but still facing some red tape. The Philippines falls lower due to slower digital speeds and longer start‑up times, despite its strong growth and young workforce.

Caveats to keep in mind

• Data gaps: Not every country reports every metric. Missing values are omitted from that country’s average, which can boost or dampen the overall score.
• Data freshness: Some metrics, particularly lending rates, use the most recent available figure even if it dates back a few years.
• Crowd‑sourced data: Numbeo figures on rent and living costs are based on user submissions and may be less precise than official statistics.
• Tax and regulatory complexity: Headline corporate tax rates and ease‑of‑doing‑business scores don’t capture all sector‑specific incentives or bureaucratic nuances.
• Outliers: For visual comparisons, we trimmed obvious outliers (e.g., extreme FDI and inflation values) to make charts easier to read. The index calculation still uses the full dataset.