For Israeli businesses, Hong Kong is a natural base for managing many of their regional operations and activities.  For SMEs (small and medium sized enterprises), setting up in Hong Kong is often the first step outside their home country, which is then followed by a gradual regional expansion. Given its geographic advantage and highly developed infrastructure, Hong Kong is also the ideal hub for companies to move into Greater China. Countries such as Thailand, Malaysia, Singapore, the Philippines and Vietnam are all within very easy reach.

Hong Kong leads the region in financial services, particularly corporate and investment banking, insurance, securities and fund management. The SAR is also an important export market for products from Israel ¡V especially for precious and semi-precious stones, telecommunications, measuring instruments and apparatus and equipment and parts.

The Greater Pearl River Delta ¡V with the commercial centres of Shenzhen, Guangzhou and Dongguan plus Hong Kong and Macao having a population of some 48 million ¡V has become progressively more attractive for Israeli and other international companies in Hong Kong. While manufacturing industries have long known about the opportunities in the Delta, professional services companies and financial institutions increasingly see the Pearl River Delta as an extension to the Hong Kong market for their products and services.

This region has become particularly attractive after China entered the World Trade Organization (WTO) in 2001, and the signing of the Closer Economic Partnership Arrangement (CEPA) in 2003. CEPA, a free trade agreement between Hong Kong and China that became effective on 1 January 2004, opens up new and exciting opportunities for companies in Hong Kong in the areas of trade in goods, trade in services, and trade and investment facilitation ¡V and for companies to invest in our city.  CEPA II, mainly effective on 1 January 2005, extends and creates new benefits in both goods and services.

Israeli companies and entrepreneurs have played an important role in Hong Kong¡¦s business community. Hong Kong is Israel¡¦s largest trading partner in Asia, and Israel is Hong Kong¡¦s 2nd largest export market in the Middle East. In 2003, bilateral trade between the two markets reached US$2.38 billion. (Bilateral trade between the two markets in 2004 is estimated at US$3 billion.) Leading import items from Israel include diamonds, semi-precious stones; precious gems; optical products and telecommunications equipment. Israeli companies also supply Hong Kong with a variety of semiconductors, electronic valves and tubes; measuring, checking, analysing and controlling instruments, as well as parts and accessories for office machines and computers. Other materials include plastic plates, sheets, film, foil and strip.

The companies from Israel in Hong Kong are a vibrant and diverse group. They are active in telecommunications, technology, IT, diamonds, trading, transportation, financial services, medical products and logistics. Many firms are increasingly engaged in business with Mainland China. SMEs flourish in many of the sectors.

For Israeli and other international companies, Hong Kong is the preferred location in Asia for regional offices and headquarters. Israeli activities in Hong Kong are based on the 72 Israeli companies with regional operations here, of which 34 are high tech firms. In addition there are local agents and distributors, Israeli investments and joint ventures.

The Economic and Trade Department of Israel¡¦s Ministry of Industry, Trade and Labour in Hong Kong promotes trade, investments, strategic alliances, and industrial and technological co-operation between Israeli and Hong Kong companies. It also provides business information and contacts. 

The Israeli Chamber of Commerce in Hong Kong promotes Israeli business interests in Hong Kong and acts as a forum for members to exchange views and seek advice. Membership is open to Israeli companies and individuals who have ties with Israel. The Chamber organises events with visiting Israeli officials and business leaders.

The Jewish Community Centre (JCC) is located in the Mid-Levels area on Hong Kong Island and provides a variety of Jewish and recreational activities. Its facilities include two restaurants, meeting rooms, a library, swimming pool, gym, classrooms and retail shop.

The Jewish Women¡¦s Association of Hong Kong (JWA) is a non-profit organisation committed to enhancing the lives of women and children in Israel and Hong Kong, and and unity in Hong Kong¡¦s Jewish community. It organises social events, including an annual Ball and a bazaar. 

Jewish Congregations in Hong Kong include Ohel Leah Synagogue, Chabad Lubavitch, Beth Midrash Shuva Israel and Heichal Ezra Synagogue (all Orthodox); and The United Jewish Congregation of Hong Kong (UJC), a member of the World Union of Progressive Judaism.

Travelling in and out of Hong Kong

Hong Kong is an extremely convenient centre for travel. The award-winning airport operates on a 24-hour basis.

El Al operates three non-stop flights weekly between Hong Kong and Tel Aviv, while many airlines offer daily direct flights to key hubs for access to Israeli cities. Daily non-stop flights are available to major cities in the Asia Pacific, North America, Europe, the Middle East and South Africa. Given Hong Kong¡¦s central location, most countries in Asia can be reached in five hours or less.

Education for Children

Education for expatriates and non-Chinese speaking children in Hong Kong is provided through over 40 international schools.

Carmel School was established in 1991as East Asia¡¦s first Jewish day school. It has expanded from a playgroup with a dozen toddlers into one of the territory¡¦s most respected international schools, with some 250 students of up to middle school age. Students come from Israel UK, Canada, Hong Kong, South Africa and the US ¡V with a wide number of other countries also represented. Religious backgrounds range from secular to traditionally observant. Academically, Carmel follows a US-style curriculum; religiously, it adheres to Modern Orthodox principles. Carmel School has much experience with Israeli newcomers.  

Contacts:

Carmel School

10 Borrett Road, Mid-levels, Hong Kong

Tel: (852) 2964 1600

Fax: (852) 2813 4121

E-mail: eepstein@carmel.edu.hk, admin@carmel.edu.hk

Website: www.carmel.edu.hk                

The largest provider of international education in Hong Kong is the English Schools Foundation (ESF). Established by Ordinance in 1967 to provide a ¡§modern liberal education,¡¨ the ESF now runs 18 schools ¡V five secondary schools, ten primary schools, two kindergartens and a special school. There are over 55 different nationalities in the Foundation¡¦s schools. Standards are high ¡V over 95% of students go on to the best universities worldwide.       

In addition to Carmel, schools following an American or North American curriculum include the Hong Kong International School, the American International School and two Christian schools. Other leading international schools are arranged according to different nationalities or specialties and include the Chinese International School (International Baccalaureate with strong emphasis on Putonghua education), the Canadian International School, the Hong Kong Academy Primary School (international baccalaureate curriculum) and several others.

Admission is subject to available places and academic selection criteria. It is advisable for parents to apply to a school before arriving in Hong Kong. Students in Hong Kong benefit from an international mix of students and exposure to languages such as Putonghua, which offers a great advantage for their future careers.

Getting Healthcare in Hong Kong

Hong Kong has first-world health standards. In addition to public hospitals, emergency rooms and specialist clinics, there are several leading private hospitals. Private medical care is available from outpatient departments of private hospitals, solo practitioners and medical practice groups.  Popular establishments include the Quality Healthcare Medical Centre, the Matilda International Hospital, the Hong Kong Adventist Hospital, Canossa Hospital (Caritas), St Paul¡¦s Hospital and the Hong Kong Sanatorium & Hospital.

Homeopathic and osteopathic care is available, as well as physical therapy and limited developmental programmes for children with special needs. 

Commuting within Hong Kong

Hong Kong is a highly mobile city with over 10.8 million passenger trips made daily on an efficient multi-modal public transport system. The major means of public transport in Hong Kong (expressed in terms of percent of total daily passenger trips) are franchised buses (38%), railways (32%), public light buses (15%), and taxis (12%). There are also ferries serving the outlying islands, as well as an extensive highway and road network. Public transportation fees are low compared with most European countries. Many expatriates decide not to own a car in Hong Kong because of its highly efficient and inexpensive transportation system.

Restaurants and Food

Hong Kong is well known for its wide variety of excellent restaurants and bars. With over 9,000 restaurants, virtually every international cuisine can be found in the city, including an impressive array of choices from around the world. The neighbourhood south of Hollywood Road (nicknamed ¡§SoHo¡¨) and Lan Kwai Fong on Hong Kong Island have a lively mix of stylish restaurants and bars, which attract an international and cosmopolitan crowd. 

Israeli/Jewish food is available at several Kosher restaurants in Hong Kong. They include the Sabra Coffee Shop and Waterside restaurant at the Jewish Community Centre, Shalom Grill Restaurant and Hayam. There also are a number of Middle Eastern restaurants in the city.

For those who enjoy cooking at home, Hong Kong has many stores and supermarkets stocking international and products from Israel. The Jewish Community Centre and Shalom Grill offer Kosher food and beverages, much of which comes from Israel. Oliver¡¦s, Great Food Hall, City Super, some of the larger Park n¡¦ Shop and Wellcome supermarkets and shops in major hotels sell Israeli and other international products. Hong Kong also has a wide choice of delicatessens, bakeries and wine shops. 

Sports and Recreation

There are a wide variety of sports and recreation activities available in Hong Kong. Football (soccer) and increasingly basketball are popular in the schools and is played in professional and amateur leagues. Golf can be played at Hong Kong¡¦s only public course ¡V The Jockey Club Kau Sai Chau in the New Territories ¡V or at several country clubs. Tennis is widely available at both public and private facilities and tournaments featuring major international players are held annually. Sailing, swimming and other water sports are widely available at beaches and public and private facilities. Rugby is provided in most schools and through programmes organised by the Hong Kong Rugby Football Union. There also are classes and competitions in various martial arts throughout Hong Kong.  Several Israeli groups get together regularly to play basketball and soccer on the weekends.

Media

Hong Kong has a large and sophisticated media community. There are more than 50 registered newspapers and about 700 periodicals. There are 11 English-language newspapers and 30 Chinese-language newspapers providing residents with greater access to news and information than they would find in most other Asian business centres.  Most residents from Israel get the latest news updates from home via the Internet. With broadband access widely available, staying in touch with events in home countries is usually easy and convenient. 

Television viewers can receive over 45 pay and free television channels in Hong Kong, as well as several free-to-air satellite TV channels. The content is diverse and international, including channels like ABC Asia Pacific, CNN, CNBC, BBC World, HBO, ESPN, Discovery, National Geographic, Turner TCM & Cartoon Network and others. There are two free-to-air terrestrial television stations in Hong Kong: Asia Television Limited (ATV) and Television Broadcasts Limited (TVB).

Radio programmes in Hong Kong are broadcast in English, Cantonese and Putonghua. There are three radio operators: Hong Kong Commercial Broadcasting Limited, Metro Broadcast Corporation Limited and the government-funded Radio Television Hong Kong (RTHK), which offer 13 channels and more than 2000 hours of programmes a week between them. The two commercial stations each transmit three channels, while RTHK

broadcasts seven channels including an English-only, classical music and a BBC World Service relay.

Hong Kong¡¦s Political System

Hong Kong and Mainland China were re-unified on 1 July 1997 under the formula of ¡§one country, two systems¡¨. This principle, which is enshrined in the Basic Law, means that Hong Kong¡¦s previous legal system has continued in place as the foundation of the rule of law. Under the Basic Law, Hong Kong enjoys a high degree of autonomy except in matters of defence and foreign affairs, and continues to flourish as a capitalist economy and international business centre. Hong Kong¡¦s finances also remain independent from the mainland and Hong Kong remains a separate customs territory and is a full and separate member of the World Trade Organization (WTO) and the Asia-Pacific Economic Co-operation Forum (APEC).

Hong Kong Employment Visa and Identity Card

Individuals who have decided to work in Hong Kong must apply for and obtain an employment visa from the Hong Kong Immigration Department before their arrival.  Processing normally takes four to six weeks. Those who intend to start their own business or to be self-employed should apply for an employment (investment) visa, a special category of visa for foreigners who wish to come to* Hong Kong to set up a business. A period of 10 to 15 weeks should be allowed for the processing of an employment (investment) visa.

Family members accompanying an employment visa applicant to Hong Kong need to submit dependant visa applications at the same time as the employment visa application.

All residents of Hong Kong are required by law to register with the Immigration Department for an identity card within 30 days of their arrival. The only exceptions are persons in transit, tourists staying only a few days, or business people who stay for a few weeks. Children aged 11 to 17 must also be registered for juvenile identity cards.

Visa Requirements for Visitors

Visitors from Israel enjoy visa-free access to Hong Kong. They are normally granted a three-month visitor¡¦s visa upon arrival. Visitors are not allowed to study or work in Hong Kong.

Business Registration

Registering a business in Hong Kong is a simple, straightforward procedure. Information regarding incorporation of a limited company in Hong Kong can be obtained from the Registrar of Companies. All businesses, whether limited companies, sole proprietorships, or partnerships must register with the Business Registration Office and pay a fee for the issue of a business registration certificate. The current fee for a one-year certificate is HK$2,600 (US$333) and a three-year certificate is HK$7,000 (US$897).

Agreements between Israel and Hong Kong

The Governments of Israel and the Hong Kong Special Administrative Region have concluded the following bilateral agreements: air services, R&D and investment protection.

Taxation

Hong Kong taxes are among the lowest in the world, and Hong Kong¡¦s tax regime is simple and predictable.  The corporate profits tax rate is 17.5% but the actual tax bill is often less after deductions and depreciation allowances. The personal tax rate is capped at 16%. No tax is paid by firms or individuals on foreign-sourced income of any kind, and there is no estate duty tax on non-Hong Kong assets. Tax returns are short and easy to complete, in contrast to the situation in many countries.

Basically, only company profits, salaries and property rental income are taxable. Hong Kong does not tax dividends or bank interest. There is no capital gains tax, no VAT or sales tax. This limited tax base, combined with exceptionally low tax rates, makes Hong Kong¡¦s tax burden much lower than in virtually all other developed economies. 

Mandatory Provident Fund

The Hong Kong government launched a mandatory pensions scheme for the territory in 2000. Members of the workforce aged between 18 and 65, and self-employed persons aged 65 or below, are required to participate in and make regular contributions to registered Mandatory Provident Fund (MPF) schemes. Mandatory contributions are calculated on the basis of 10 % of an employee's relevant income, with the employer and employee each paying 5 %. Self-employed persons also have to contribute 5 % of their relevant income and may choose to contribute on a monthly basis or a yearly basis. However, all contributions can be withdrawn if the scheme member has departed or will leave Hong Kong permanently. This applies to all expatriates leaving Hong Kong.