Hong Kong Company Registration
Limited company · Two-tier profits tax · Territorial taxation
A Hong Kong limited company gives foreign founders a low-tax, free-port base with access to the mainland China market. Profits tax is 8.25% on the first HK$2 million of assessable profits and 16.5% thereafter, and the territorial system taxes only profits sourced in Hong Kong.
- Typical timeline
- 5–10 working days
- Entity type
- Private company limited by shares
- Profits tax
- 8.25% on the first HK$2m; 16.5% above
- Ownership
- Up to 100% foreign-owned
Every Hong Kong company must have its accounts audited annually by a Hong Kong practice, regardless of whether it trades. That cost should be budgeted from the start.
Why a Hong Kong entity
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Territorial tax — Only profits arising in or derived from Hong Kong are taxable. Offshore profits may be excluded, subject to the filing and substantiation requirements.
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Two-tier rates — The first HK$2 million of assessable profits is taxed at 8.25% for a qualifying company; the remainder at 16.5%.
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No indirect taxes — No VAT, no capital-gains tax, and no dividend withholding tax.
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Free movement of capital — No foreign-exchange controls, and multi-currency banking is routine.
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China access — A familiar structure for cross-border trade, sourcing, and holding arrangements involving mainland operations.
Registration requirements
| Requirement | Rule | Practical note |
|---|---|---|
| Company name | English name ending in Limited, and optionally a Chinese name ending in 有限公司 | Both must clear the Companies Registry name check. |
| Directors | At least one, any nationality, aged 18 or over | A foreign director is permitted. |
| Shareholders | At least one; may be the same person as the director | 100% foreign ownership is permitted. |
| Share capital | Typically HK$10,000 | No paid-up capital verification is required at incorporation. |
| Registered address | A Hong Kong address | Can be provided by the company secretary. |
| Company secretary | A Hong Kong resident or a licensed secretarial company | Must be appointed at incorporation. |
Registration sequence
Name selection
English and, if required, Chinese names are checked for availability and restricted words.
Shareholder and director details
Identity documents, addresses, and the shareholding split are confirmed.
Incorporation documents
The articles of association and incorporation form are signed; foreign shareholders can sign abroad.
Government filing
The application is filed with the Companies Registry and the business registration is obtained.
Corporate kit
The certificate of incorporation, business registration certificate, company seal, and statutory registers are delivered.
Banking and operations
A corporate bank account is opened and, where needed, employment visas are prepared for staff relocating to Hong Kong.
Annual obligations
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Annual return — Filed with the Companies Registry each year within the prescribed period after the incorporation anniversary.
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Audited accounts — Annual audit by a Hong Kong Certified Public Accountant practice, followed by the profits tax return.
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Business registration renewal — The business registration certificate is renewed annually and the fee paid.
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Significant controllers register — The company must maintain a register of significant controllers and keep it available for inspection.
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Employment visa — Foreign staff who will work in Hong Kong need an employment visa sponsored by the company; the company must show genuine local operations.
Frequently asked questions
Hong Kong or Singapore — which is better?
Hong Kong is usually stronger for mainland China trade, sourcing, and RMB-related business, with a territorial tax system and lower headline profits tax. Singapore is usually stronger for Southeast Asia, technology, and regional headquarters, with a broader treaty network. The answer depends on where the customers, suppliers, and banking relationships are.
Do mainland residents need a local guarantor or trading record?
No guarantor is required, and a newly formed company with no trading history can be registered. Banks, however, apply their own KYC and may be more demanding with new companies, so a clear business plan and source-of-funds evidence matter.
How long does registration take, and must I go to Hong Kong?
Typically five to ten working days. Registration can be completed remotely. Bank account opening may require a video or in-person interview depending on the bank.
What are the setup and annual costs?
Government fees plus the company secretary, registered address, and corporate kit at setup. Annually, the business registration fee, annual return, company secretary, registered address, bookkeeping, and the statutory audit. The audit is the largest recurring item and depends on transaction volume.
Why would a registration be rejected?
The usual reasons are a name that is too similar to an existing company, a restricted word, incomplete identity or address documents, or a company secretary who does not meet the licensing requirement. These are correctable and the filing can be resubmitted.
Can a Hong Kong company sponsor an immigration application?
It can sponsor an employment visa (the General Employment Policy or the Admission Scheme for Mainland Talents and Professionals) for staff who will genuinely work in Hong Kong. The company must demonstrate real operations, and the role must be one a local candidate cannot readily fill.
Talk to an advisor
Send us the details of your case. A senior advisor will tell you which route is realistic and what it will take — before any fee is agreed.
Last updated: 2026-11-03