- Entity type
- Private company limited by shares (Ltd)
- Corporate tax
- 8.25% on first HK$2m, 16.5% above — territorial
- Setup cost from
- $1,200
- Setup time
- 1–5 business days
- Minimum capital
- HK$1
- Local director
- Not required
- Remote formation
- Yes
- Residency visa
- Possible
- Banking
- Difficult
Best for: Trading, sourcing and e-commerce businesses dealing with China and Asia that want a low-tax, territorial system.
Advantages
- Low two-tier profits tax and a territorial system — offshore profits can be exempt
- No local director needed, 100% foreign ownership
- Fast online incorporation, often within a day
Watch out for
- A Hong Kong-resident company secretary and local registered address are mandatory
- Statutory audit every year, regardless of size
- Traditional bank accounts are hard to get — plan for fintech alternatives
How to set up a company in Hong Kong
- 01
Check the name and appoint a company secretary
1 dayCheck name availability on the Companies Registry. Appoint a Hong Kong-resident individual or local company as secretary and get a registered office address.
- 02
File the incorporation form (NNC1)
1 dayFile online via e-Registry (HK$1,545). Business Registration is applied for in the same step.
- 03
Receive your certificates
1–4 daysThe Certificate of Incorporation and Business Registration Certificate are issued together. The one-year BR fee is HK$2,350 (including the levy, reinstated in April 2026).
- 04
Set up your statutory registers
1 dayKeep the Significant Controllers Register, register of members and directors at your registered office.
- 05
Open a business account
1–8 weeksHSBC, Bank of China and Standard Chartered apply strict KYC and often want a visit. Airwallex, Statrys and Hong Kong virtual banks are faster for non-residents.
- 06
Plan your tax position
ongoingThe Inland Revenue Department issues the first profits tax return about 18 months after incorporation. If your profits are earned outside Hong Kong, consider an offshore claim with professional help.
Why Hong Kong?
Hong Kong offers one of the simplest tax systems in the world: profits tax is only charged on Hong Kong-sourced profits, at 8.25% on the first HK$2 million and 16.5% above. No VAT, no capital gains tax, no withholding tax on dividends — and it’s the gateway to mainland China.
The territorial system and offshore claims
If your company’s profit-generating activities happen outside Hong Kong (for example, you sell to European customers and negotiate contracts from abroad), you can file an offshore claim. The IRD reviews these carefully and may ask detailed questions — good documentation is essential.
Since 2023 the Foreign-Sourced Income Exemption (FSIE) regime taxes certain passive income (dividends, interest, disposal gains, IP income) received in Hong Kong unless economic substance or participation exemptions apply.
Typical costs
| Item | Approx. |
|---|---|
| Incorporation (e-filing) | HK$1,545 |
| Business Registration (1 year) | HK$2,350 |
| Company secretary + address | HK$3,000–8,000/year |
| Audit + tax filing | HK$6,000–15,000/year |
Is Hong Kong right for you?
It’s a great fit for trading, sourcing and Asia-facing businesses. Be realistic about banking and the mandatory audit; for simple online service businesses a US LLC is often cheaper to run.
Every year
- Annual return (NAR1) to the Companies Registry
- Business Registration renewal (HK$2,350)
- Statutory audit of financial statements
- Profits tax return
- Significant Controllers Register upkeep
Questions about Hong Kong
Is offshore income tax-free in Hong Kong?+
Profits sourced outside Hong Kong are not taxed under the territorial system, but you must claim and prove it. Under the FSIE rules, passive foreign income received in Hong Kong needs economic substance or another exemption.
Do I need a local director?+
No. One director of any nationality is enough. Only the company secretary must be local.
Why is banking so hard?+
Banks apply strict anti-money-laundering checks to non-resident companies. Many founders start with Airwallex, Statrys or a virtual bank.
Did government fees change recently?+
Yes. The HK$150 Business Registration levy returned on 1 April 2026 after a two-year waiver.
General information, not legal or tax advice. Fees, rates and rules change. Check current figures with the official authority or a licensed adviser before acting. Disclaimer