Complete guide: requirements, taxes, costs, jurisdiction comparison ⬇
Why Hong Kong: key facts
- Profits Tax — 8.25% on the first HKD 2 million of assessable profits, 16.5% above that. With an Offshore Profit Claim — 0% on offshore income.
- VAT, dividend tax, capital gains tax — none.
- DTA network — double taxation agreements with 45+ countries including the UAE, PRC, France, and Japan.
- 100% foreign ownership — no requirement for local partners or residents.
- Payment system access — Stripe, PayPal, Apple Pay, Google Pay, App Store.
- Confidentiality — the Significant Controllers Register is closed to the public.
- Remote registration — no visit to Hong Kong required.
Who Hong Kong is right for — and who should look elsewhere
Suitable for:
- Trade with China and Asia: export, import, intermediary arrangements.
- IT, SaaS, mobile apps monetised via App Store / Stripe / PayPal.
- E-commerce with fulfilment from China.
- Holding structures — ownership of stakes in Asian assets.
- IP management, royalty models.
- Fintech and payment companies (MSO licence), crypto (VATP licence since 2023).
Consider another jurisdiction if:
- Business is focused exclusively on the GCC / Middle East market — UAE or Bahrain are more logical.
- European address and EU DTA treaties are required — Cyprus or Malta are preferable.
- Active operations in Russia / CIS — Hong Kong banks work with this direction with more difficulty.
Company requirements
| Parameter | Requirement |
|---|---|
| Director | Minimum 1 natural person, any nationality and residency |
| Shareholder | Minimum 1 natural or legal person, any country |
| Corporate secretary | Mandatory; HK resident or licensed TCSP firm |
| Registered address | Physical address in Hong Kong (P.O. Box not accepted) |
| Share capital | Minimum HKD 1. Recommended from HKD 10,000 |
| Audit | Annual, mandatory for all companies regardless of turnover |
Types of companies in Hong Kong
| Structure | Liability | Best suited for |
|---|---|---|
| Private Limited (Ltd.) | Limited | 95% of use cases: trading, IT, holding, fintech |
| Public Limited | Limited | IPO, listing on HKEX |
| Branch Office | Parent company | Branch of a large corporation |
| Representative Office | Parent company | Marketing with no commercial activity in HK |
| Partnership | Unlimited | Professional services |
For most purposes — Private Limited Company. Only this structure allows full use of the territorial tax principle and Offshore Profit Claim.
Taxes in Hong Kong
| Tax | Rate | Condition |
|---|---|---|
| Profits Tax (first HKD 2 million) | 8,25% | Income sourced from HK |
| Profits Tax (above HKD 2 million) | 16,5% | Income sourced from HK |
| Offshore Profit Exemption | 0% | On successful Offshore Profit Claim |
| VAT / GST | 0% | Does not exist |
| Dividend tax | 0% | Does not exist |
| Capital gains tax | 0% | Does not exist |
| Stamp Duty (share transfers) | 0,2% | Applied to the transaction |
| Business Registration Fee | ≈ HKD 2,150/year | Annual levy |
Offshore Profit Claim: if all business is conducted outside Hong Kong (counterparties not in HK, contracts signed outside HK), the company may annually confirm offshore profit status through an auditor and pay zero Profits Tax.
FSIE Regime from 2024: passive income (dividends, royalties, interest, gains on asset disposals) is exempt from tax only upon meeting economic substance requirements. Tax planning is essential for holding structures.
Step-by-step incorporation guide
- KYC and name check. Verify 2–3 name options in the Companies Registry database; conduct beneficiary due diligence. Timeline: 1–2 days.
- Document preparation. Articles of Association, Incorporation Form NNC1, founder resolutions. Timeline: 1–2 days.
- Filing with Companies Registry. Electronic submission via e-Registry. Review period: 1–4 business days.
- Receipt of documents. Certificate of Incorporation (CI) and Business Registration Certificate (BRC) from the IRD. Company seal produced.
- Bank account opening. Selection of bank or payment provider suited to the business model. Timeline: 2–6 weeks.
- Accounting setup. Appoint auditor, set up HKFRS-compliant bookkeeping. First tax return due 18 months after registration.
- Name is identical or too similar to an existing registered name.
- Restricted words without a licence: Bank, Trust, Royal, Insurance, Chamber.
- Incomplete KYC package or expired passport.
- Signature on the power of attorney does not match the passport.
Bank account in Hong Kong
| Type | Banks | Requirements | Timeline |
|---|---|---|---|
| Major banks | HSBC, Standard Chartered, Bank of China HK | Substance, in-person director visit, balance from HKD 500,000 | 4–8 weeks |
| Mid-tier banks | Hang Seng, DBS HK, Fubon | More flexible, suitable for SMEs | 3–6 weeks |
| Digital banks / EMIs | Airwallex, Statrys, Currenxie, ZA Bank | Online onboarding, multi-currency, minimal requirements | 1–3 weeks |
CIS nationals can open an account remotely. Compliance at major banks has tightened — a practical alternative is digital banks and EMIs.
Documents for incorporation and bank account:
- Passport (notarised copy) of each director and shareholder.
- Proof of residential address (not older than 3 months).
- Certificate of Incorporation and Business Registration Certificate.
- Articles of Association.
- Register of directors and shareholders.
- Business plan and description of activities; expected turnover and counterparty information.
- If corporate shareholder: full corporate pack of the parent company with apostille.
Cost of opening and maintaining a company
| Expense item | Cost (USD) | Frequency |
|---|---|---|
| Incorporation (government fee + BRC) | ≈ 130–180 | One-time |
| Corporate secretary + address | 600–1 200 | Annual |
| Financial audit | 1 000–3 000 | Annual |
| Annual Return (filing fee) | ≈ 35 | Annual |
| Bank account opening | 500–2 000 | One-time |
| Director visa | 1 500–4 000 | Every 2 years |
| MSO / VATP licence (if required) | From 3,000 | One-time |
Total year one (basic package, no visa or licence): USD 2 500–5 000.
With bank account and accounting support: USD 5 000–9 000.
Hong Kong vs Singapore vs UAE: jurisdiction comparison
| Parameter | Hong Kong | Singapore | UAE (Free Zone) | Cyprus |
|---|---|---|---|---|
| Corporate tax | 8,25% / 16,5% (0% offshore) | 17% | 9% (above AED 375 000) | 12,5% |
| VAT | 0% | 9% GST | 5% VAT | 19% |
| Incorporation cost | From USD 650 | From USD 1 200 | From USD 4 500 | From USD 1 500 |
| Incorporation timeline | 5–7 days | 7–14 days | 10–21 days | 10–15 days |
| Remote setup for CIS nationals | Yes | Difficult | Partly | Yes |
| Stripe / PayPal / App Store | Yes | Yes | Limited | Yes |
| Substance requirements | Minimal | Moderate | Growing | Moderate |
| DTA network | 45+ countries | 90+ countries | 135+ countries | 65+ countries |
| Reputation with counterparties | High | Very high | Moderate | Moderate |
| Maintenance cost (year 2) | ≈ USD 4 000 | ≈ USD 6 000 | ≈ USD 5 500 | ≈ USD 3 500 |
Hong Kong — best for: trade with China and Asia, IT / SaaS, e-commerce, holdings, IP structures, fintech.
Singapore — best for: businesses requiring maximum reputational jurisdiction with European and US partners.
UAE — best for: business in the Middle East, Africa, CIS markets; personal tax residency.
Cyprus — best for: holdings with European DTAs, IT structures targeting the EU market.
How we help you open a company
- Turnkey registration. Full document preparation and submission to Companies Registry; receipt of CI and BRC.
- Bank account opening. Bank or EMI selection matched to the business model; KYC package preparation; compliance guidance.
- Accounting and audit. HKFRS-compliant bookkeeping, audit report, Profits Tax Return and Annual Return filings.
- Corporate secretary. Register maintenance, change filings with Companies Registry, annual general meeting administration.
- Tax planning. Offshore Profit Claim, DTA application, FSIE Regime compliance for holding structures.
- Visa support. Investment Visa and Business Visa for directors and key employees.
Conclusion
Company registration in Hong Kong takes 5–7 days and is available entirely remotely. The jurisdiction provides access to Asian markets, territorial taxation, international payment systems, and a DTA network covering 45+ countries. With a properly structured business, the effective tax burden can be zero.
Registering a company in Hong Kong means acquiring a tool that genuinely works for international business. Our team will guide you from the initial consultation to a fully operational structure with a bank account.
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