Hong Kong company formation.

A gateway to Asian markets.

Hong Kong is an onshore jurisdiction with a long-standing reputation for trade, finance and the rule of law.

Companies are incorporated under the Companies Ordinance (Cap. 622) by the Companies Registry and registered for business with the Inland Revenue Department. Hong Kong taxes only profits arising in or derived from Hong Kong, at comparatively low rates, while expecting full statutory audits and annual tax filings. That combination of low tax and real compliance is what gives a Hong Kong company its credibility with banks and trading partners.

AT Express is headquartered in Cyprus, with offices in the United Kingdom, Hong Kong, China, Vietnam and Singapore. Our team in Hong Kong coordinates formations, company secretarial services and banking introductions with licensed local professionals.

The private company limited by shares.

Almost all international owners use a private company limited by shares. It may have between one and fifty members, restricts the transfer of its shares and may not invite the public to subscribe for them. Overseas companies can alternatively register a non-Hong Kong company place of business, or open a representative office, but a locally incorporated subsidiary is usually simpler to bank and to operate.

What sets Hong Kong apart.

• One director and one shareholder; at least one director must be a natural person, of any nationality.
• A company secretary who is resident in Hong Kong, or a body corporate with a registered office or place of business there.
• Electronic incorporation, with certificates normally issued in about an hour for online applications.
• A territorial, two-tier profits tax, with no VAT or sales tax and no tax on dividends paid.
• A free port with no restrictions on capital movements and a freely convertible currency.

Territorial, two-tier profits tax.

Under the two-tiered regime published by the Inland Revenue Department, corporations pay profits tax at 8.25% on the first HK$2 million of assessable profits and 16.5% on the remainder. Only one entity in a group of connected entities may elect for the lower tier.

Because the system is territorial, profits arising outside Hong Kong may not be chargeable, but offshore claims are examined closely and require evidence of where the profit-producing activities took place. Since 2023, Hong Kong has also applied a foreign-sourced income exemption regime to certain passive income received by entities in multinational groups, which may require economic substance in Hong Kong.

A balanced view.

What you will need.

• At least one director who is a natural person, and at least one shareholder; both may be non-residents.
• A company secretary resident in Hong Kong, or a qualifying corporate secretary.
• A registered office address in Hong Kong.
• A company name approved by the Registry and articles of association.
• Identification and address documents for directors, shareholders and significant controllers.

From first call to certificate.

According to the Companies Registry, a certificate of incorporation and business registration certificate are normally issued in about one hour for electronic applications. Preparing documents and completing due diligence takes longer, and banking usually takes the most time.

Keeping the company in good standing.

• Annual return to the Companies Registry within 42 days of the anniversary of incorporation.
• Audited financial statements prepared by a Hong Kong certified public accountant each year.
• Profits tax return filed with the Inland Revenue Department when issued.
• Business registration renewed each year.
• Significant controllers register kept at the registered office or a prescribed place in Hong Kong.

Banking for a Hong Kong company.

Hong Kong companies can open accounts with local banks, international banks in the territory, or licensed virtual banks and payment institutions. Banks expect a clear business plan, evidence of trading links with the region and full documents on the owners, and some require a meeting. Approval is at the bank’s discretion. See international bank account opening and our comparison of Hong Kong and Singapore companies.

Frequently asked questions.

Official sources.

1. Hong Kong Companies Registry, Frequently asked questions on incorporation and business registration — electronic processing time and secretary requirements.
2. Inland Revenue Department, Profits tax.
3. Inland Revenue Department, Two-tiered profits tax rates regime.
4. Council of the European Union, EU list of non-cooperative jurisdictions for tax purposes.
5. OECD, International standards on tax transparency, including the Common Reporting Standard.
6. Internal Revenue Service, Foreign Account Tax Compliance Act (FATCA).

Hero image: “Hk Kln (163394719)” by Warren Ng, licensed under CC BY-SA 3.0.