Hong Kong has built a reputation as one of Asia’s easiest and most reliable places to start a business. Its appeal lies in a low and predictable tax system, open trade policies, and a streamlined digital registration process. As of mid-2025, more than 1.49 million local companies are registered, with over 84,000 new incorporations recorded in just the first half of the year — proof that the city remains a favourite base for global entrepreneurs and growing SMEs.
Starting a company in Hong Kong gives business owners access to one of the world’s most open markets. The corporate profits tax is capped at 16.5%, and small businesses benefit from a two-tier system that reduces the rate on the first HK $2 million (approx. USD $257,000) of profits.
Company formation is remarkably fast, the entire process can be completed online in about an hour. There are no exchange controls, so profits and capital can move freely across borders. Combined with its proximity to China and the wider Asia-Pacific region, Hong Kong remains a strategic location for international trade and investment.
Before you register, decide which structure best fits your goals and risk profile:
Your company name must follow the Companies Registry (CR) guidelines. Use the CR’s e-Search tool to check availability before submitting.
Names can be in English, Chinese (traditional characters), or both. Avoid words that are offensive, misleading, or suggest official status — such as “Royal,” “Bank,” or “Trust” — unless you have specific approval. Private limited companies must end with “Limited” or “有限公司.”
Pro tip: prepare several alternatives. Even though digital checks are fast, names that resemble existing ones (for example, “ABC Ltd” vs “ABC Limited”) may still be rejected.
To incorporate a company, you’ll need:
Applications can be filed online through the e-Registry (typically processed within an hour) or submitted on paper, which takes about four working days.
Once your application is approved, you’ll receive two key documents:
Together, these serve as proof of your company’s legal standing in Hong Kong.
Every Hong Kong company must have at least one individual director, who can be of any nationality. The company secretary must be either a Hong Kong resident or a licensed corporate body with a local address.
The roles of director and secretary must be held by different people or entities.
A registered office address in Hong Kong (not a P.O. box) is mandatory.
Shareholders may be individuals or corporations, and one person can serve as both director and shareholder.
Since 2018, non-listed companies in Hong Kong have been required to maintain a Significant Controllers Register — a record of individuals or entities that hold significant control.
Who qualifies as a controller:
Each company must appoint a designated representative, who is either a Hong Kong resident (director or employee) or a licensed professional such as an accountant, solicitor, or Trust or Company Service Provider (TCSP).
The SCR must be stored at the registered office (or another reported location) and updated within seven days of any change.
Failure to maintain or update the register can result in fines of up to HK$300,000 or imprisonment for responsible officers. Many firms use TCSPs to manage SCR obligations and stay compliant.
After incorporation, companies must:
To open a corporate bank account, banks will ask for:
Banks conduct Know-Your-Customer (KYC) and anti-money-laundering checks, so processing can take time. Some companies open a secondary account to avoid delays.
Depending on your business type, you may need additional licences.
Use the Business Licence Information Service online tool to find out what applies to your sector. Common examples include:
Non-compliance can lead to heavy penalties, so apply only after receiving your Business Registration Certificate.
Hong Kong’s government has digitised almost every step of the compliance process:
|
Fee |
Timeline |
|
|
Incorporation |
HK$1,545 |
1 hour (online) / 4 days (paper) |
|
Business registration |
HK$2,000 + levy (1 year) / HK$5,200 (3 years) |
— |
|
Non-Hong Kong company registration |
— |
~10 working days |
Hong Kong operates a two-tier profits tax:
Unincorporated businesses pay 7.5% and 15% respectively. Only profits sourced in Hong Kong are taxable; offshore income is exempt.
There are no VAT, capital gains, dividend, or withholding taxes. Salaries tax is progressive from 2% to 17% (or a flat 15%), and property tax is 15% on net rental value.
From 2025, the OECD Pillar Two minimum tax rule applies to large multinationals, setting a global floor of 15%.
Foreign entrepreneurs can relocate to Hong Kong under several visa schemes:
Although optional since 2014, many firms still use a company chop — a rubber stamp showing the company name and registration number — for contracts, invoices, and banking documents.
A common seal, once required for formal deeds, is now largely ceremonial but still useful for traditional or overseas transactions.
Entrepreneurs can register a company themselves via the e-Registry, or hire a Trust or Company Service Provider (TCSP) to handle everything.
|
Advantages |
Drawbacks |
Approx. cost |
|
|
DIY registration |
Fast, low-cost, full control |
Requires knowledge of compliance rules |
Government fees only |
|
TCSP assistance |
Expert setup, useful for non-residents |
Higher service fees |
HK$2,000–5,000 setup; HK$3,000–6,000 annual |
Non-residents are advised to use a licensed TCSP. You can verify providers on the Companies Registry’s TCSP Register.