Starting a Business in Hong Kong: A Step-by-Step Guide

Starting a business in Hong Kong involves choosing the right business structure, meeting local company requirements, submitting registration documents, and preparing for ongoing tax and compliance obligations.

Hong Kong remains a leading international business hub, offering access to Mainland China and the wider Asia-Pacific market. In 2025, 1,532 non-Hong Kong companies were newly registered, bringing the total number to 15,586 by year-end⁽¹⁾ .

This guide explains how to start a business in Hong Kong step by step, including what to consider when starting a company in Hong Kong as a foreigner.

Why start a business in Hong Kong?

Hong Kong offers unmatched access to Asia’s markets, low taxes, and a world-class business environment. Below, we clearly define all the reasons why it’s the ideal place to start a business and the challenges your venture may confront.

Advantages of starting a business in Hong Kong

Hong Kong offers a range of compelling advantages for businesses, making it a top destination for entrepreneurs and investors as follows:

• Attractive tax regime: Hong Kong offers a two-tiered profits tax system. The first HK$2 million of profits are taxed at 8.25%, and profits exceeding this threshold are taxed at 16.5%⁽²⁾. Hong Kong does not impose a general value-added tax or sales tax. Under its territorial source principle, only profits arising in or derived from Hong Kong are generally subject to Profits Tax. Whether income is foreign-sourced depends on the operations that produced the profits and where those operations were carried out.
• Access to Mainland China & Asian Markets: Hong Kong serves as a strategic gateway to Mainland China and other key Asian markets. Its unique position allows businesses to leverage the “one country, two systems” framework, facilitating smoother cross-border operations.​
• Supportive startup ecosystem: The Hong Kong government actively supports startups through various programs. For instance, Cyberport offers funding and resources to digital startups, while the Innovation and Technology Fund provides financial support for technology development.
• Skilled workforce & infrastructure: Hong Kong is home to a highly educated labor force, particularly skilled in Artificial Intelligence (AI) and automation. The Hong Kong International Airport is a leader in cargo, and the city’s public transport system is efficient and well-connected. It also offers high-speed internet and excels in logistics with advanced ports and cargo facilities. Regional connectivity is enhanced by the Express Rail Link and Hong Kong-Zhuhai-Macao Bridge.

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6 Benefits Of Setting Up A Company In Hong Kong

Challenges of starting a business in Hong Kong

While Hong Kong is a global business hub, there are several challenges that new entrepreneurs should be aware of, including:

• Strict corporate banking requirements: Due to stringent anti-money laundering (AML) regulations, foreign entrepreneurs may face delays or rejection when opening a corporate bank account. Most banks require in-person verification and detailed documentation.
• Work visa limitations: Foreigners must prove they possess skills that are not readily available locally or meet investment thresholds to obtain a business or employment visa.
• Highly competitive and saturated market: Key sectors like finance, trading, and consulting are already crowded, making it difficult for new businesses to gain traction without a unique value proposition.
• High operational costs: Office rental and living expenses in Hong Kong are among the highest in Asia, affecting startups with limited budgets.
• Cultural and language barriers: Although English is common in business, understanding Cantonese and local customs is important for smoother communication and market integration.

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How To Set Up A Company In Hong Kong: A Step-by-Step Guide

How to start a business in Hong Kong: Step-by-step 

To start a business in Hong Kong, founders should prepare their business model, select a legal structure, meet the company requirements, file the registration documents, and arrange banking, licences, financing, accounting, tax, and ongoing compliance.

Step 1: Create a business plan

A business plan helps founders define their commercial direction, assess financial viability, prepare forecasts, and explain the proposed business to investors, banks, immigration authorities, and other stakeholders.

Although business plan is not one of the standard documents required to incorporate a local company with the Companies Registry, it can still be valuable for:

• Defining the company’s products, services, and target customers
• Explaining the business model and sources of revenue
• Estimating startup costs, working capital, and cash flow
• Preparing for bank or payment-account onboarding
• Seeking loans, investors, or government support
• Supporting an Investment as Entrepreneurs visa application
• Planning marketing, recruitment, taxation, and operations

The plan should reflect the company’s intended activities rather than relying on generic projections or market assumptions.

Step 2: Choose the right business structure

The structure you select affects personal liability, ownership, tax administration, funding options, and ongoing compliance. Common options for a small business include a private company limited by shares, a sole proprietorship, and a partnership.

A private company limited by shares is commonly selected by founders seeking limited liability, clearer ownership arrangements, and a structure that can support investment or expansion. Sole proprietorships and partnerships must apply for business registration within one month after commencing business.

Before making a decision, it’s essential to evaluate business goals, risk tolerance, and investment needs. If unfamiliar with Hong Kong’s regulations, consulting a professional can ensure the best structure is selected for your specific requirements.

Step 3: Meet government requirements

To operate smoothly, avoiding unnecessary legal hassle in the future, meeting the government’s legal requirements is a crucial next step. Businesses must complete a few key factors:

• Hiring a local company secretary: Hong Kong law requires all companies to appoint a company secretary according to Section 474 of the Companies Ordinance. The company secretary plays a crucial role in maintaining company records, ensuring compliance with legal obligations, and filing necessary documents with government authorities.
• Establishing a registered business address: As per Sec. 658 of the HKCO, every business must have a physical address in Hong Kong for official communication. This address will be used for receiving legal notices and business correspondence.
• Reserving a unique company name: It’s necessary to choose a business name that is distinct and complies with local guidelines. The name must not be identical to any existing business and must avoid prohibited terms. Businesses can search the Integrated Companies Registry Information System (ICRIS) to confirm name availability before proceeding with registration.
• Appointing at least one director: a director can be an individual aged 18 or above, or in limited cases a corporate entity. Directors may be Hong Kong residents or non-residents, and nominee directors are permitted; there is no cap on the maximum number of directors.
• Appointing at least one shareholder: a shareholder can be an individual aged 18 or above, or a corporate entity, and may be a Hong Kong resident or non-resident. Nominee shareholders are allowed, and the sole director may also act as the sole shareholder.
• Meeting the minimum share capital: a Hong Kong private company must issue at least HK$1.00 in share capital, with no maximum limit, and bearer shares are not permitted.

Step 4: Register your business

To formally establish a company in Hong Kong, you must submit the required incorporation documents to the Companies Registry through the e-Services Portal or in person at the office, which include:

• An Incorporation Form (Form NNC1 for companies limited by shares or Form NNC1G for those not limited by shares)
• A copy of the company’s Articles of Association
• A Notice to the Business Registration Office (IRBR1).

Once your company is successfully registered, you will receive the Certificate of Incorporation, which formally establishes your business as a legal entity. It will also receive a Business Registration Certificate through Hong Kong’s one-stop company incorporation and business registration service.

Different procedures apply to other business structures:

• A company incorporated outside Hong Kong that establishes a place of business in Hong Kong must generally apply for registration as a non-Hong Kong company using Form NN1, the required certified supporting documents, and Form IRBR2. These documents are submitted to the Companies Registry under the one-stop registration process.
• Sole proprietorships and partnerships are not incorporated through the Companies Registry. They must apply for business registration with the Business Registration Office within one month after commencing business.

*Note:

For online applications, certificates are typically issued within an hour, while paper applications take about four working days.

Step 5: Open a business bank account

Hong Kong bank account allows you to legally manage business finances, including receiving payments, making transactions, and fulfilling tax obligations. More importantly, having a dedicated business account ensures financial transparency and helps your company comply with local regulatory requirements.

When selecting a bank, consider your company’s needs. Some banks may offer more flexibility for startup businesses, while others provide extensive international services. Smaller banks may be more accommodating if you have a solid business plan but lack local financial history.

Because of its strict compliance policies, it’s advisable to contact banks in advance, compare requirements, and confirm the onboarding process.

To open an account, prepare essential documents such as:

• Certificate of Incorporation.
• Business Registration Certificate (BRC).
• Articles of Association.
• Proof of identity for directors and shareholders (e.g., passport, Hong Kong ID).
• Proof of address (e.g., utility bill or bank statement).
• Account application forms provided by the bank.
• Personal resumes and bank reference letters for directors, shareholders, and other key members.
• Bank statements for key members or related corporate entities, and proof of business activities such as contracts, invoices, or agreements.

If an application is rejected, reviewing the common reasons for refusal can help you prepare a stronger submission: see 3 reasons why Hong Kong banks may reject your application.

Step 6: Obtain necessary licenses and permits

Depending on your business type, you may need industry-specific licenses such as food and beverage permits, import/export certificates, or health and safety approvals. To get accurate information on required licenses, follow these steps:

• Visit the Business Licence Information Service (BLIS) portal.
• Use the search function to identify licenses based on your business type, product, or service.
• Review the listed requirements and application procedures for each license.
• Submit your application through the appropriate government department as guided.

Businesses are generally required to apply for the relevant licence within one month of starting operations, and processing typically takes two to eight weeks from the application date, depending on the licence type and issuing authority.

Step 7: Secure financing for your startup

Startup businesses in Hong Kong have access to various funding sources such as personal savings, bank loans, angel investors, and venture capital. Each option has its own benefits and requirements. In addition, the Hong Kong government offers several financial support schemes:

• Innovation and Technology Fund (ITF): designed for businesses in tech and innovation sectors.
• SME Financing Guarantee Scheme: supports financing provided by participating lenders to eligible small and medium-sized enterprises through government-backed guarantees. The application period for the 80% Guarantee Product has been extended to the end of March 2028. Financing remains subject to the participating lender’s credit assessment, HKMCI’s approval, and the applicable scheme requirements⁽³⁾ .

To increase the chances of securing funding, entrepreneurs should prepare a clear business plan, detailed financial forecasts, and a compelling pitch. This preparation demonstrates professionalism and builds confidence among investors or funding agencies.

Step 8: Comply with taxes & financial reporting tax

In Hong Kong, businesses are legally required to meet ongoing and financial reporting obligations. Proper compliance ensures smooth operations and avoids penalties. Below are the key requirements:

• File the Annual Return with the Companies Registry to keep company details up to date. File within 42 days of the company’s incorporation anniversary.
• Maintain accurate and complete accounting records in accordance with the Companies Ordinance.
• Prepare and submit audited financial statements annually.
• File the Profits Tax Return with the Inland Revenue Department (IRD) on time. Submit the first return together with audited accounts around the 18th month after incorporation, then annually thereafter.
• Pay Profits Tax 16.5% for corporations, 15%⁽⁴⁾ for unincorporated businesses.
• Pay Salaries Tax if you employ staff.
• Pay Property Tax if your business owns property in Hong Kong.
• Engage a certified public accountant (CPA) for reliable financial reporting and compliance support.
• Hold the first Annual General Meeting (AGM) within 18 months of incorporation, and every subsequent AGM within 15 months of the previous one.
• File the Employer’s Return with the IRD within the period specified in the IRD’s notice, if the company employs staff.
• Renew the Business Registration Certificate at least one month before its expiry date.

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A Beginner’s Guide To Opening An Offshore Company In Hong Kong

Do you need a visa when starting a company in Hong Kong as a foreigner?

Foreigners can establish a business in Hong Kong without needing a visa or residency. However, if you intend to live and work in the city, you must apply for a suitable visa. Several visa categories support entrepreneurial and professional activities:

• Entrepreneur visa (also known as the Investment Visa): For those planning to establish or join a business in Hong Kong. You must demonstrate a solid business plan, sufficient funds, and potential to contribute to the local economy.
• General Employment Policy (GEP) visa: For professionals employed by a Hong Kong company. A confirmed job offer and relevant qualifications are required.
• Top Talent Pass Scheme (TTPS): For high-income individuals or graduates from top universities. No job offer is needed.

Applications can be submitted online via the https://www.immd.gov.hk or in person, including the following documents:

• A detailed business plan
• Proof of sufficient capital
• Academic or professional qualifications
• Relevant work experience

*Note:

Supporting documents must be in English or Chinese, with certified translations if required. For an initial Investment as Entrepreneurs visa or entry permit application, processing normally takes approximately four weeks after the Immigration Department receives all required documents and the relevant application fee.

If approved, you may also sponsor dependents under certain conditions. Each visa type has specific requirements, so reviewing official guidelines or consulting a legal advisor is recommended to ensure compliance.

Additional resources for entrepreneurs in Hong Kong 

Hong Kong offers a supportive environment for entrepreneurs, with a range of resources to help launch and grow businesses efficiently.

Startup Accelerators and Incubators

• Cyberport is a digital tech hub wholly owned by the HKSAR Government, supporting over 2,200 startups with resources in AI, fintech, and digital innovation, offering incubation, funding, and global expansion support.
• HKSTP (Hong Kong Science and Technology Parks Corporation) is a statutory body that fosters a dynamic innovation and technology ecosystem by supporting startups, connecting industry players, and nurturing tech talent.

Government Tools and Support Services

• InvestHK offers free consultation and assistance with business setup for both local and foreign entrepreneurs.
• The SME Centre under the HKTDC provides access to market information, training programs, and various funding schemes to help small businesses grow effectively.
• The Companies Registry allows for quick company registration and guides legal compliance.

Tip: Before submitting an incorporation application, founders should verify the proposed company name, review the required documents, and confirm the company’s registration details through reliable official sources. These checking tools for your Hong Kong company registration can help reduce filing errors and make the registration process more efficient.

Networking and Business Communities

• StartmeupHK Festival by InvestHK offers overseas startups enter Hong Kong with ecosystem insights, networking opportunities.
• RISE connects startups with investors, mentors, and industry peers.
• The Hong Kong General Chamber of Commerce advocates for businesses, offers networking, hosts 500+ annual events, and provides services like certification, training, and venue rental.
• Federation of Hong Kong Industries offers ongoing business development opportunities, policy updates, and training sessions.

Cost of starting a business in Hong Kong

The cost of starting a business in Hong Kong varies depending on your company structure, licensing needs, and chosen service provider, but the following government and service fees give a general benchmark.

• Business Registration Certificate fee: from 1 April 2026, the total one-year Business Registration fee is HK$2,350, comprising a HK$2,200 registration fee and a HK$150 levy for the Protection of Wages on Insolvency Fund⁽⁵⁾.
• Government and licence fees: industry-specific licences may cost around HK$2,000 or more, depending on the licence type.
• Registered office address: a virtual or physical registered office typically starts at around HK$2,000 per year.
• Company secretary fee: engaging a corporate service provider as company secretary typically costs from HK$1,500 to HK$3,000 per year.
• Business bank account fee: opening a corporate bank account may involve a one-time cost from around HK$500, depending on the bank.

Start up business in Hong Kong with BBCIncorp

BBCIncorp is an all-in-one platform that combines corporate and legal expertise with digital tools to simplify cross-border company formation. Clients can use the BBCI Client Portal to complete e-KYC, upload documents, and track their Hong Kong incorporation progress in real time.

Support is available through an AI-powered chatbot, searchable self-service guides, and live chat with human agents during extended business hours.

We provide end-to-end services for company incorporation in Hong Kong, including:

• Company Formation Service: Expert guidance on selecting a suitable business structure, preparing incorporation documents, and completing the company registration process.
• Company Secretary Services: Assistance with adhering to local corporate governance regulations, ensuring compliance with Hong Kong laws.
• Open a Corporate Bank Account: Support with bank selection, document preparation, and the account-opening process.
• Accounting Services: Offer accurate bookkeeping, tax compliance, and dedicated support tailored to your business.
• Local Registered Office Address: Meets legal requirements and enhances your business’s credibility in the region.
• Virtual Office Solutions: Establish a presence in Hong Kong with services such as mail forwarding and phone answering, even without a physical office.
• Compliance and Taxation Support: Ensure you meet ongoing compliance obligations, including tax filings and annual reporting, with our professional assistance.

BBCIncorp provides a connected and transparent experience for entrepreneurs establishing a business in Hong Kong. Our combination of professional expertise, digital tools, and ongoing support helps clients reduce administrative complexity while maintaining clearer visibility over their company formation and compliance progress.

Whether you’re starting a business or an expanding business, let us handle the details while you focus on what matters most in growing your business.

Conclusion

Hong Kong remains an attractive destination for entrepreneurs due to its competitive tax system, strategic location, established legal framework, and access to international markets. Understanding how to start a business in Hong Kong helps founders prepare for incorporation, banking, licensing, tax, and ongoing compliance from the outset.

BBCIncorp provides end-to-end support for company formation and ongoing business administration. Chat with us to discuss your plans and take the next step toward establishing your Hong Kong company.