How to Set up a Company in Hong Kong

Hong Kong as an International Business Hub

Under British rule, Hong Kong evolved into a leading financial and business hub. Its strategic location in Asia, combined with a legal system based on English common law and a favorable tax regime, positioned it as a thriving financial center that attracted many of the world’s major financial institutions.

What are the advantages of incorporating in Hong Kong?

Hong Kong has long been a popular destination for businesses of all sizes to incorporate. Its straightforward approach to company registration and affordable operating costs make it especially attractive for sole shareholder companies.

The city is one of the best places for Western companies seeking unrivaled access to China while operating in a business-friendly environment. Whether you want to sell products in China or export goods from China to the West, Hong Kong facilitates these processes with ease.

As a major financial center, Hong Kong provides access to world-class business and banking infrastructure. The city’s financial framework was designed to attract businesses, featuring a relaxed corporate regulatory environment and simple taxation, which makes it a dynamic place to operate.

Alongside Singapore, Hong Kong consistently ranks highly in surveys assessing the ease of doing business and remains a popular choice for expatriates looking to incorporate in Asia.

What are the tax benefits of setting up a company in Hong Kong?

Hong Kong has a headline corporate tax rate of 16.5%. However, profits below HKD 2,000,000 are taxed at the reduced rate of 8.25%.

Another noteworthy aspect that has made Hong Kong a popular jurisdiction for offshore companies is the availability of an offshore tax exemption. Businesses that do not have active operations within Hong Kong can apply for this exemption, allowing them to potentially operate in the region while paying no income tax.

Additionally, Hong Kong does not impose a capital gains tax, nor is there a tax on shareholder dividends. Because the region operates under a territorial tax system, foreign sourced income is generally not subject to taxation.

Whether you intend to operate a business in Hong Kong or use the company to hold other investments, it can be an effective way to conduct international operations while minimizing tax liabilities, or even eliminating them entirely if structured correctly.

International tax planning is complex. The information provided here is general in nature only. If you would like to discuss taxation specific to your situation, please book a call.

Can a foreigner set up a company in Hong Kong?

Hong Kong welcomes businesses from around the globe. The jurisdiction has relatively relaxed regulations concerning corporate roles and foreign ownership. A company registered in Hong Kong can be owned entirely by foreigners.

What else is required to incorporate in Hong Kong?

In Hong Kong, there is no requirement for a resident director, which makes it an attractive option for expatriate business owners. However, it is mandatory to have a resident company secretary.

There is no minimum number of shareholders needed, allowing for the possibility of a company with just one person. Additionally, the minimum paid-up share capital required to register a company in Hong Kong is only HKD 1.

Please contact us if you are interested in our nominee corporate secretary services.

Next steps

If you’re interested in setting up a company in Hong Kong and exploring its use in an offshore business plan, feel free to get in touch.

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