Land is scarce in Hong Kong therefore property prices are expensive by world standards.

Office space rental is a high fixed cost for companies.

Generally speaking rentals are higher for office space on Hong Kong Island, followed by Kowloon and the New Territories. Expensive districts tend to be centrally located, in close proximity to government offices and legal firms.

Districts on Hong Kong Island that have higher-than-average rentals include Central, Admiralty and the harbour-front area in Wanchai. Parts of Kowloon also have higher rentals, such as Tsimshatsui.

New Zealand companies that need to impress clients with a smart office might find it justifiable to locate in these areas.

Otherwise it is suggested that companies consider value for money and locations in other districts which may be more practical and cost effective. “Second choice” business districts that are popular include:

• Kowloon Bay and Kwun Tong (both in Kowloon),
  
• Sheung Wan,
  
• North Point,
  
• Fortress Hill and
  
• Quarry Bay (all on Hong Kong Island).

Companies that need large office or storage spaces can consider renting in the New Territories districts such as Fo Tan and Siu Lek Yuen where rental is much less expensive.

Companies involved in science, technology, design or research and development and require offices with specialised facilities and possibly incubator services, a number of options are available including: the Hong Kong Applied Science and Technology Research Institute (ASTRI), Hong Kong Science and Technology Parks (HKSTP), Cyberport, Hong Kong Design Centre. For details see Invest HK.

Depending on the product type, nature and positioning, a retail outlet must be carefully chosen with plenty of research and onsite investigation done beforehand.

Retail space rental is again expensive in Hong Kong and usually landlords request tenants to sign a minimum of one to two year fixed lease.

Some of the busiest and most popular shopping districts in Hong Kong are Causeway Bay (Hong Kong Island), Tsimshatsui (Kowloon) and Mongkok (Kowloon). Different types of shoppers visit each district, with Causeway Bay and Tsimshatsui being more high-end and expensive and Mongkok low-end and mass market.

The major shopping malls are spread across Hong Kong serving different consumer groups.

Ultra high-end ones include Elements (in Kowloon), IFC, Landmark and Pacific Place (all on Hong Kong Island). They are frequented by wealthy locals, expatriates and cash-loaded mainland tourists. Patrons are after branded, unique and superb quality products. They are the least price-sensitive consumer group.

Mid-to-high end malls include Times Square (on Hong Kong Island), Harbour City and Festival Walk (both in Kowloon). These places are visited mainly by the middle class who are generous in spending. Patrons are after branded, new and good quality products, but they are still moderately price-sensitive.

There are also a number of extremely busy shopping malls patronised by a mixed demographic. These malls are usually located in the New Territories, an area initially inhabited by people on lower incomes, but with urban sprawl now including rich residents. Examples include New Town Plaza in Shatin, Tai Po Mega Mall and APM in Kwun Tong frequented by white collar workers whose offices have moved into the neighbourhood in recent years.

Kwun Tong has traditionally been an “old” district with plenty of aging residents and empty  industrial buildings. During the past five years or so the district has undergone a gradual facelift and has become revitalised as a new business district.

Setting up an office in Hong Kong is fast, easy and inexpensive. The first step is to select company name and structure. A unique company name needs to be chosen in order to register a local company in Hong Kong. The processing time for registering a limited company is four days. Registering a branch office of parent company takes 3-4 weeks.

There are different company structures to suit different business requirements. A Hong Kong limited company allows its owner to take advantage of all the tax benefits and concessions available to a fully incorporated business. Hong Kong-based companies can benefit from the Closer Economic Partnership Arrangement (CEPA) with mainland China. Companies must be incorporated at the Companies Registry and registered with the Business Registration Office of the Inland Revenue Department.

Invest Hong Kong (InvestHK) is the Hong Kong government department responsible for attracting and facilitating inward investment into the city. It supports overseas, mainland China and Taiwanese companies to set up and expand in Hong Kong providing assistance to companies at any stage of their business development.

All of InvestHK services are free, customised and confidential. New Zealand companies that are totally new to Hong Kong can seek a first-hand consultation with InvestHK.

Set-up procedures are detailed in Invest HK website.

• Quality telecommunications services are widely available to the public at affordable prices. Fixed voice services, mobile services, broadband services and data services in Hong Kong are top tier:
  
• the mobile penetration rate is over 166 percent.
  
• the number of public Wi-Fi access points is close to 8000.
  
• nearly 80 percent of households are using broadband internet services.
  
• in local fixed telecommunications network services, the density of lines per household is among the highest in the world.
  
• digital terrestrial TV covered about 46.5 percent (1.06 million) of local households by end of 2009. The government aims to switch off analogue broadcasting in 2012.

In Hong Kong leasing and purchasing of properties are mostly done through licensed agents.

There are numerous real estate agents who can provide property leasing/rental, buying/selling services. Major local agencies include:

• Midland Realty.
  
• Rentaline Property Agency
  
• Century 21 Hong Kong
  
• Savills Hong Kong
  
• Colliers International

The Estate Agents Authority provides handy guides to purchasing properties and signing tenancy agreements.

The Community Legal Information Centre also provides useful information.

Staff can be hired through:

• the Labour Department of the Hong Kong government,
  
• online recruitment portals or printed classified ads and
  
• commercial recruitment agencies.

The Labour Department has an interactive employment service to search for jobs or place ads online.

Local commercial online recruitment portals include:

• ClassifiedPost Hong Kong.
  
• JobsDB.com
  
• Career Times Online.
  
• Monster Hong Kong.
  
• Recruit Online.

All these portals (except JobsDB.com) have printed versions.

There are also numerous commercial human resources agencies providing recruitment and headhunting services, including:

• Hudson.
  
• Michael Page International (HK).
  
• Gemini Personnel. 
  
• Adecco.
  
• Levin Human Resources Development.
  
• Drake.
  
• Ambition Group Hong Kong. 
  
• Williams (Hong Kong).

The Labour Department has information on labour laws and regulations, including compensation and occupational safety and health.

The Hong Kong Government website also has important information for employers on licensing for certain occupations and the Mandatory Provident Fund (MPF) which all Hong Kong employers have to participate in.

Additionally, employers have obligations to complete and submit an employer’s return.

Useful links include:

• Vocational Training Council.
  
• Hong Kong Management Association.
  
• Hong Kong Productivity Council.
  
• Federation of Hong Kong Industries.
  
• The Open University of Hong Kong.
  
• The Hong Kong Institute of Education, School of Continuing and Professional Education.
  
• The University of Hong Kong, School of Professional and Continuing Education.
  
• City University of Hong Kong, School of Continuing and Professional Education.
  
• Hong Kong Baptist University School of Continuing Education.
  
• The Hong Kong Polytechnic University, College of Professional and Continuing Education.
• The Chinese University of Hong Kong School of Continuing & Professional Studies.
  
• Lingnan Institute of Further Education.

Apart from the above education and training institutes, there are plenty other private commercial training companies serving corporate clients. Usually these training companies tailor short-term programmes according to the client’s needs.