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.
How to register a company in Hong Kong?
|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|