REGISTRATION OF BUSINESS IN HONG KONG

Hong Kong is one of the world’s most trusted and efficient business hubs. As a Special Administrative Region of China, it operates under a separate legal and tax system (“one country - two systems" framework) which allows to offer a secure and predictable environment for international entrepreneurs.

Hong Kong is one of the most attractive locations in Asia for internationally focused business activities. It is particularly well-suited for companies and entrepreneurs operating with partners across Asia-Pacific, thanks to its advanced financial infrastructure, stable regulatory environment, and open market policies.

The Hong Kong tax system is widely recognised for its simplicity, transparency, and competitiveness. A territorial taxation regime applies, meaning that only income sourced from Hong Kong is subject to tax. Foreign-sourced income is generally not taxed, provided certain conditions are met.

Since 2018, Hong Kong has participated in the OECD Automatic Exchange of Financial Account Information (CRS) and adheres to international transparency standards. At the same time, Hong Kong is not included on international “blacklists”, maintaining its status as a reputable and compliant jurisdiction in the context of anti-money laundering and countering the financing of terrorism.

Benefits of doing business in Hong Kong

• World-class banking system

Home to numerous international banks, supporting efficient global payments and treasury operations.

• Confidentiality and asset protection

Beneficial ownership information is filed with authorities, but not publicly disclosed, providing a high degree of privacy.

• Fast and straightforward company incorporation

Companies can often be registered within a few days with minimal administrative burden.

• Free capital movement

No foreign exchange controls – funds may be transferred freely in and out of Hong Kong.

• No customs duties

Free-port status with duty-free import and export of most goods, combined with one of the world’s busiest ports.

• Territorial tax regime

Only Hong Kong-sourced profits are taxed; offshore income may be exempt subject to conditions.

• Trusted global financial centre

Hong Kong is a member of the OECD and a member of the Financial Action Task Force (FATF), ensuring alignment with international compliance and anti-money-laundering standards.

• Highly developed legal system

Based on English common law, providing strong investor protection and contract enforcement.

Requirements for business registration in Hong Kong

Setting up a company in Hong Kong is straightforward, but certain legal and administrative requirements apply. The most common and flexible structure for international entrepreneurs is a private company limited by shares or by guarantee.

• Company Name Requirements

A company name can be registered in English, Chinese, or both (any combination of English words/letters and Chinese characters is not allowed). An English company name must end with the word “Limited” and a Chinese company name must end with the characters “有限公司”. It should be unique and not conflict with existing registered names or trademarks. A company name will not be registered if it is offensive or otherwise contrary to the public order.

• Director & Shareholder Requirements

There should be at least one director and one shareholder (individual or corporate).

The same individual may act as both director and shareholder. No residency or nationality requirements. A director cannot simultaneously act as the company secretary. The number of shareholders could be between one and fifty.

• Company Secretary & Registered Address

A company secretary must be a Hong Kong resident or a corporate secretary service licensed in Hong Kong. A P.O. Box is not accepted as a registered office address in Hong Kong. Companies should always use a full physical address where documents can be delivered.

• Compliance & Reporting

Statutory records must be maintained such as, in particular, register of directors or register of shareholders. Annual audit is mandatory and should be conducted by a Hong Kong Certified Public Accountant (CPA). Annual filings required: (i) Annual Return (Companies Registry); (ii) Annual Financial Statements and Audit Report; (iii) Profits Tax Return (to Internal Revenue Department). Proper accounting records should be kept for at least 7 years (including financial reports, payroll, and contracts).

• Licensing Requirements

Certain business activities require licences/permits: finance & money service operations; logistics & customs-related services etc.

• Additional Notes

Beneficial owner information is filed with authorities but not publicly disclosed.

Taxation in Hong Kong

Hong Kong follows a strict territorial taxation system. Companies are taxed only on profits that arise in or are derived from Hong Kong. Profits generated outside Hong Kong are not subject to Hong Kong tax (additional conditions could apply). To benefit from offshore tax exemption, a company must apply to the Hong Kong Inland Revenue Department and should obtain approval through an "offshore profits claim." Offshore status is not automatic; it must be reviewed and confirmed by the tax authorities. 

Two-tier corporate tax rates are applicable:

(i) 8.25 % on assessable profits up to HKD 2,000,000;

(ii) 16.5 % on any part of assessable profits over HKD 2,000,000.