Company Formation
Hong Kong is one of the few countries in the world that applies tax on a territorial basis, while many countries levy tax differently and tax the world-wide profits of a business, including profits derived from an offshore source. Hong Kong profits tax is only charged on profits derived from a trade, profession or business carried on in Hong Kong.
Consequently, this means that a company which carries on a business in Hong Kong, but derives profits from another place, is not required to pay tax in Hong Kong on those profits. Sourced income is currently subject to a rate of 8.25% on assessable profits up to HK$2,000,000; and 16.5 % tax on any part of assessable profits over HK$2,000,000 and there is no tax in Hong Kong on capital gains, dividends and interest earned.
Set up a business in Hong Kong with 818Hi
With many years of experience, 818HI is renowned for its local expertise and is able to provide clients worldwide with fast and effective Hong Kong company formation services.
Please find Hong Kong company incorporation form here.
The 818HI team can communicate in fluent English, French, Chinese, Russian, Korean and Japanese to bridge eventual language barriers.
For more information, please contact us.
How to register a company in Hong Kong?
| Criteria | Requirement |
| Minimum number of shareholders | 1 |
| Minimum number of directors | 1 |
| Minimum share capital requirement | HK$1 |
| Nationality and address of shareholders / directors | No restrictions |
| Address in Hong Kong | Mandatory |
| Incorporation time | 1 to 5 working days |
| Confidentiality | Company records are open to public |
| Tax advantages | 8.25% on assessable profits up to HK$2,000,000; and 16.5 % tax on any part of assessable profits over HK$2,000,000 derived in Hong Kong, offshore income is not taxable |
| Bank account opening | Bank treat Hong Kong companies more favorably |
Frequently Asked Questions (FAQ)
Can a foreign individual or company be a 100% shareholder of a Hong Kong company?
Yes, non-Hong Kong residents (individuals or companies) can incorporate a local limited company in Hong Kong and own 100% of the shares.
How long does it take to incorporate a Hong Kong company?
For paper submissions, the Certificate of Incorporation and Business Registration Certificate are usually issued on the 4th working day after submission. For electronic submissions, these certificates are typically issued within 1 hour for a private company limited by shares.
Does a Hong Kong company require a local resident director?
No, a non-Hong Kong resident can be appointed as a director of a local limited company.
Can a sole director act as the company secretary?
No, under Section 154(1B) of the Companies Ordinance, the sole director cannot also act as the company secretary. Additionally, a private company cannot appoint a corporate secretary if the sole director of the corporate secretary is also the sole director of the company.
Do I need to visit Hong Kong to incorporate a company?
No, the entire application process can be completed remotely.
Are the details of directors and shareholders public information in Hong Kong?
Yes, information about company directors and shareholders can be accessed at the Hong Kong’s Companies Registry.
What are the minimum requirements for registering a Hong Kong company?
•Minimum of one shareholder (local or foreign, aged 18+).
•Minimum of one director (local or foreign, aged 18+).
•The shareholder and director can be the same person.
•No minimum share capital is required; typically, 1 share of HKD 1.00 is issued.
•Must have a local registered address (P.O. boxes are not allowed).
•Must appoint a company secretary (individuals must reside in Hong Kong, and corporate secretaries must have a registered office in Hong Kong).
•The sole shareholder and director cannot also act as the company secretary.
What is the minimum age requirement for directors and shareholders?
Both directors and shareholders must be at least 18 years old.
Do foreigners need a Hong Kong partner to form a company?
No, a local partner is not required. However, you will need a corporate secretary for statutory compliance. The secretary also serves as the registered address agent and handles annual filings.
Can a Hong Kong company hire foreign employees?
Yes, a Hong Kong company can hire foreign employees, but an employment visa must be filed and approved for each employee.
Is a Hong Kong company required to file audited accounts?
Yes, all Hong Kong companies must file audited accounts with the Inland Revenue Department along with their profits tax return annually, unless exempted.
Does a Hong Kong company need a business license to operate?
Certain businesses require licenses, such as travel agencies, restaurants, employment agencies, fund managers, insurance brokers, lawyers, liquor distributors, moneylenders, banks, and childcare centers. Licenses can be applied for only after incorporating the company.
Are corporate directors and shareholders permitted?
Yes, both directors and shareholders can be individuals or corporate entities. However, the sole director must be an individual.
What are the paid-up capital requirements for Hong Kong companies?
There is no minimum share capital requirement. The typical minimum issued/paid-up capital is 1 share of HKD 1.00.
What are the guidelines for naming a Hong Kong company?
Company names must:
•Not be the same as or similar to existing names in the Companies Registry’s index.
•Not infringe on trademarks.
•Not be offensive or contrary to public interest.
•Not combine English words/letters with Chinese characters.
Who can act as the company secretary for a Hong Kong company?
An individual acting as the secretary must reside in Hong Kong. A corporate secretary must have its registered office or place of business in Hong Kong.
How long must a Hong Kong company keep its accounting records?
Records must be preserved for seven years after the end of the financial year to which they relate.
What documents are needed to incorporate a Hong Kong company?
•Copy of your passport.
•Proof of residential address (utility bill, phone bill, or bank statement issued within the last three months).
•Completed incorporation details form with information about the proposed company, such as its name, shareholders, and directors.
How long does it take to open a corporate bank account in Hong Kong?
Once the company is registered, it typically takes 1 to 10 days to open a corporate bank account.
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