Hong Kong Guides & FAQs

Explore our latest updates and helpful guides for starting your business in Hong Kong

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Company Incorporation

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Banking System

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Tax & Compliance Requirements

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Frequently Asked Questions

Corporate taxation in Hong Kong

Hong Kong SAR adopted territorial tax regime under which only incomes derived inside Hong Kong are subject to corporate income tax. The two-tier tax rates applied for the fiscal year 2018/19 onwards are presented below:

  • Net assessable income of the first 2mil HKD is taxed at 8.25%
  • The remainder is taxed at 16.5%

In addition, there are no sales, capital gains, most interest and dividend incomes, withholding taxes in Hong Kong.

Business incorporation

The cost for incorporating your business can be various and depend greatly on your business types, capital structures, industries, etc.

Some businesses need significant initial capital to start, while others such as micro-businesses and home-based companies have lower financial entry barriers.

One common way to estimate your incorporation cost is by drafting a business plan. Within your plan, the financial section should show your approximate revenue, profit, and expenses.

There are other ways to estimate your finances as well, such as our Hong Kong Cost Planning Tool. The tool will help you break down all initial costs of your business, so you know how much capital you should prepare when incorporating.

Business operation

  • Minimum one director and one shareholder, which can be the same person.
  • A local registered address in Hong Kong.
  • A local company secretary, which can be a Hong Kong resident (above 18 years old) or Hong Kong registered company.

It normally takes only 1 working days for e-filing and registration.

Yes. A Foreigner is allowed to take up 100% ownership in a Hong Kong company and can be the sole director and shareholder.

Company directors/shareholders/beneficial owners

Minimum one director and one shareholder are required. Moreover, at least one natural person must be appointed as a director. Corporate directors are only approved with specific conditions.

A person can be the sole director and shareholder of a company. But the sole director cannot be company secretary of the same company.

Yes, information of directors and shareholders must be filed for registration with the Company Registrar. The company is also responsible for identifying company’s significant beneficial owners and have to register with the Registrar.

Share capital

There is no required minimum registered capital to open a Hong Kong private company, and the standard is HK$10,000.

Ordinary (registered shares), preferred shares, voting and non-voting shares, share with no par value, redeemable shares, shares with special voting rights.

Annual compliance

  • Maintaining one director, one shareholder;
  • Maintaining local registered address and local company secretary;
  • Renewal business registration certificate;
  • Annual return filing;
  • Tax return filing with audited financial statements.

Industry News & Insights

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