I
Hong Kong

Hong Kong

Company Formation in Hong Kong

Hong Kong

Formation Time
1–2 business days
Min. Capital
HKD 1
Corporate Tax
16.5% (8.25% on first HKD 2M)
Foreign Ownership
100%

Overview

The Hong Kong Special Administrative Region (HKSAR) is the premier financial and commercial gateway between mainland China and global capital markets, operating under the constitutional principle of 'One Country, Two Systems' with an independent legal system grounded in English common law. Governed by the Companies Registry and Inland Revenue Department (IRD), a Hong Kong Private Limited Company can be incorporated in 1 to 2 business days. Hong Kong offers one of the world's most advantageous corporate tax regimes: a two-tiered profits tax system that taxes the first HKD 2 million of corporate profits at just 8.25%, and subsequent profits at 16.5%. Operating on a strict territorial source principle, profits derived from commercial activity, trade, or services performed outside Hong Kong are completely exempt from tax under an approved Offshore Profits Claim. Hong Kong levies zero VAT/GST, zero sales tax, zero capital gains tax, zero dividend withholding tax, and maintains zero foreign exchange controls, enabling frictionless international liquidity. Under the Closer Economic Partnership Arrangement (CEPA), Hong Kong-registered companies enjoy preferential duty-free market access to mainland China across goods and service sectors.

0% offshore income
0% VAT
8.25% on first HKD 2M
China gateway

Why Choose Hong Kong

1

Two-tiered profits tax: 8.25% on first HKD 2M; 16.5% standard rate

2

Territorial tax system: offshore profits qualify for 0% Hong Kong taxation

3

Zero VAT, zero sales tax, zero capital gains tax, and zero dividend withholding tax

4

No foreign exchange controls — completely unrestricted movement of capital and currency

5

CEPA framework providing preferential duty-free market access to mainland China

6

English common law legal system with independent courts and commercial judiciary

7

HKD 1 minimum share capital with 24-hour electronic Companies Registry setup

8

Asia's premier private equity, IPO capital market, and cross-border trade hub

Business Entity Types

EntityOwnershipDirectorsCapitalTaxBest For
Private Company Limited by Shares100%1 (individual of any nationality)HKD 18.25% on first HKD 2M profit; 16.5% standard; 0% on approved offshore claimsInternational trading, China trade gateway, fintech, corporate holding
Limited Partnership Fund (LPF)100%1 General Partner (GP) + 1 Investment ManagerNo minimumProfits tax exemption under Unified Funds Exemption regime; 0% capital gainsPrivate equity, venture capital, real estate funds, crypto/Web3 investment syndicates
Registered Non-Hong Kong Company (Branch)100%1 authorized representative resident in HKNone8.25% / 16.5% on HK-sourced profitsForeign multinational corporations expanding operational presence into HK
Company Limited by Guarantee100%2 directorsNoneExempt from profits tax if recognized as charitable institution under Section 88Chambers of commerce, industry trade associations, educational and philanthropic bodies
Sole Proprietorship / Partnership100%1 proprietorNoneStandard 15% profits tax rate (7.5% on first HKD 2M)Individual freelancers, localized trading businesses

Step-by-Step Formation Process

1

Name Search & Clearance

Same day

Conduct electronic name availability check on Companies Registry Cyber Search Centre.

2

Statutory Filing Preparation

1 day

Draft Articles of Association and prepare Form NNC1 with shareholder/director declarations.

3

Electronic Registry Incorporation

1–2 days

Lodge electronic filing with Companies Registry and Inland Revenue Department simultaneously.

4

CoI & Business Registration Issuance

Same day

Receive Certificate of Incorporation (CoI) and Business Registration Certificate (BRC).

5

Corporate Kit & SCR Establishment

1 day

Issue share certificates, prepare company seal, and establish Significant Controllers Register (SCR).

6

Corporate Bank Account Setup

2–4 weeks

Open multi-currency accounts with commercial banks (HSBC, Standard Chartered) or virtual banks (ZA Bank, Airwallex).

Costs & Fees

Government / License FeeHKD 1,720+
Our Service FeeUSD 2,000+
Annual RenewalUSD 1,200+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Hong Kong remains Asia's leading international banking hub with over 150 licensed banks. Non-resident entrepreneurs can open accounts with traditional high-street institutions like HSBC Hong Kong, Standard Chartered, and Bank of China (Hong Kong), or leverage licensed virtual banks and fintech platforms (Airwallex, ZA Bank, Neat, Currenxie) that offer streamlined electronic KYC onboarding.

Account Opening Time
2–4 weeks
Multi-Currency
Yes — multiple currencies supported

Recommended Banks

HSBC Hong KongStandard Chartered HKBank of China (Hong Kong)Hang Seng BankDBS Hong KongZA BankAirwallex

Tax Overview

Corporate Tax
8.25% on first HKD 2,000,000 of assessable profits; 16.5% on balance above HKD 2M
Personal Income Tax
2% to 17% progressive salaries tax (standard rate cap of 15%)
VAT / Sales Tax
0% — Hong Kong levies no VAT, GST, or general sales tax
Capital Gains Tax
0% — complete exemption on capital gains and share disposals
Withholding Tax
0% on outbound dividends and interest; 2.475%–4.95% on royalties paid to non-residents
Double Tax Treaties
45 countries

Under Hong Kong's territorial source tax doctrine, income derived outside Hong Kong is not subject to profits tax upon filing an Offshore Profits Claim. Under the updated Foreign-Sourced Income Exemption (FSIE) regime, multinational enterprises must demonstrate adequate economic substance in Hong Kong to claim exemption on specified foreign passive income.

Visa & Residency

Top Talent Pass Scheme (TTPS)

2 years

Fast-track visa for graduates of world's top 100 universities or individuals earning HKD 2.5M+ (~USD 320,000) annually

General Employment Policy (GEP) - Entrepreneur

2 years (renewable 3-3 pattern)

For entrepreneurs who establish or join a business capable of making substantial economic contribution to Hong Kong

Quality Migrant Admission Scheme (QMAS)

2 years, renewable

Points-based talent admission scheme for skilled professionals without pre-existing job offer

New Capital Investment Entrant Scheme (New CIES)

2 years (renewable)

Requires investment of HKD 30 million+ in permissible financial assets and non-residential real estate

Family visa: AvailableProcessing: 4–8 weeks

Frequently Asked Questions

Is offshore income really tax-free in Hong Kong and how do I claim it?
Yes. Hong Kong operates a territorial source principle of taxation. If a company's commercial operations, contracting, customer negotiations, and service fulfillment occur entirely outside Hong Kong, the profits can be claimed as offshore-sourced and 100% exempt from profits tax. This requires an Offshore Profits Claim filed alongside the annual audited accounts, subject to review and verification by the Inland Revenue Department (IRD).
Can I open a Hong Kong bank account without physically visiting Hong Kong?
Yes. Licensed virtual banks such as ZA Bank, as well as global cross-border financial platforms like Airwallex and Currenxie, offer 100% remote digital onboarding for Hong Kong entities. Traditional tier-one banks (HSBC, Standard Chartered) generally prefer video conference KYC or an in-person appointment at a commercial branch.
Do I need a local resident director to set up a Hong Kong company?
No. Hong Kong corporate law permits 100% foreign ownership and all directors may be foreign nationals residing anywhere in the world. However, every Hong Kong company must appoint a licensed Hong Kong resident Company Secretary (an individual resident or a licensed Trust or Company Service Provider corporate body, which Incorp International provides).
Is an annual financial audit mandatory for every Hong Kong company?
Yes. Under the Hong Kong Companies Ordinance, every private limited company must have its annual financial statements audited by an independent Hong Kong Certified Public Accountant (CPA) before submitting its annual Profits Tax Return to the Inland Revenue Department. There is no small-company audit exemption in Hong Kong.
What is the Foreign-Sourced Income Exemption (FSIE) regime in Hong Kong?
Introduced in 2023 to satisfy EU and OECD international tax standards, the FSIE regime specifies that multinational enterprise groups receiving foreign passive income (dividends, interest, IP disposal gains, equity disposal gains) in Hong Kong must satisfy economic substance requirements (adequate local staff and expenditure) to preserve 0% tax exemption.
How does CEPA provide advantages for Hong Kong companies entering mainland China?
The Closer Economic Partnership Arrangement (CEPA) is a bilateral free trade agreement granting Hong Kong goods zero-tariff entry into mainland China, alongside preferential market-access concessions for Hong Kong service suppliers across banking, legal, transport, and IT sectors.
What is the Significant Controllers Register (SCR) requirement?
All Hong Kong companies must maintain an up-to-date Significant Controllers Register (SCR) at their registered office, detailing individuals or legal entities holding more than 25% of shares or voting rights, or exercising significant control. The register is not accessible to the general public, but must be available for inspection by authorized law enforcement officers.