Hong Kong
Set up a Hong Kong company: entity types, tax benefits, costs, and timelines. Connect with verified HK incorporation specialists on XBandGlobal.
Foreign Ownership Eligibility
Hong Kong welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- 100% foreign ownership allowed
- No residency requirement for shareholders or directors
- Fully remote company formation
- No minimum share capital
- Company secretary must be HK resident or HK-registered company
- Registered address in Hong Kong required
Ownership
100% Foreign OK
Formation
100% Remote
Tax at a glance
Hong Kong Tax Overview
8.25%
Profits Tax (first HK$2M)
Two-tier rate for corporations — one entity per connected group may elect
16.5%
Profits Tax (remainder)
Standard rate for incorporated businesses on assessable profits above HK$2M
Territorial
Tax system
Only profits arising in or derived from Hong Kong are taxable — offshore income is exempt
None
VAT / GST
Hong Kong does not impose any value-added tax or goods and services tax
None
Capital gains tax
Profits from capital asset sales are excluded from Profits Tax
None
Withholding tax on dividends
Dividends to shareholders (local or foreign) are not subject to withholding
Abolished
Estate / death duties
Abolished since February 2006 — no succession tax applies
None
FX controls
Free movement of capital in and out with no restrictions
57 DTAs
Double Taxation Agreements
Including mainland China, UK, Japan, India, Canada, France, and others
7.5% / 15%
Unincorporated Profits Tax
For sole proprietorships and partnerships — two-tier: 7.5% on first HK$2M, 15% on remainder
Pros & cons
Advantages & Considerations
Key Advantages
Territorial taxation — only HK-sourced profits are taxed; offshore income is exempt even when remitted to Hong Kong
No VAT or GST — reduces compliance burden and makes cross-border trade simpler
Low corporate tax: 8.25% on the first HK$2M of profits, 16.5% on the rest — among the lowest in developed economies
No capital gains tax — capital asset sales fall outside Profits Tax completely
No withholding tax on dividends — shareholders receive distributions without deduction, regardless of nationality
Incorporate in 1 hour — private limited companies can form same-day via the CR e-filing portal
100% foreign ownership with no requirement for a local director or local shareholder
Access to mainland China through CEPA (Closer Economic Partnership Arrangement) and the Greater Bay Area
Common law legal system based on English law — familiar to international businesses and widely used in cross-border contracts
160+ licensed banks and a top-5 global financial centre with liquid capital markets
Free port with no customs duties on most imported or exported goods
No foreign exchange controls — capital moves in and out freely
57 comprehensive Double Taxation Agreements reduce cross-border tax exposure
Intellectual property protections for patents, trademarks, copyright, and designs enforced under HK law
Considerations
Commercial rent is among the most expensive in the world — Grade A office space in Central costs a premium
Bank account opening can take 2–6 weeks; non-resident directors often face extra scrutiny and in-person attendance requirements
All companies must be audited annually by a certified public accountant — no small-company exemption exists
A local company secretary (HK resident or HK-registered body corporate) is mandatory — an ongoing cost for foreign-owned companies
The political environment under One Country, Two Systems may create uncertainty for some industries
Stiff competition for skilled talent in tech and finance against Singapore and Shenzhen
High cost of living — ranked among the world's most expensive cities, which affects staffing budgets
Limited physical space across the territory can constrain companies that need to scale physical operations
Structural Comparison
PRIVATE LTD
BRANCH
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Search and reserve your company name via the Companies Registry e-Services portal
Prepare incorporation documents: Form NNC1, Articles of Association, and Form IRBR1
Appoint at least one natural-person director and a Hong Kong–resident company secretary
Submit incorporation application (electronic filing recommended)
Receive Certificate of Incorporation and Business Registration Certificate
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Hong Kong setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? YES.
Banking options for non-resident founders in Hong Kong. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| HSBC Hong Kong | Full-service international bank | Low (Visit Required) | Largest bank in HK; at least one signatory must attend in person. Business Integrated account from HK$10K–50K deposit. |
| Hang Seng Bank | Major local bank (HSBC subsidiary) | Low (Visit Required) | Popular with SMEs. In-person attendance required. Competitive fees for local transactions. |
| Standard Chartered HK | International bank | Low (Visit Required) | Some remote options for existing global SC clients. Good for multi-currency and cross-border needs. |
| Bank of China (Hong Kong) | Major bank (strong mainland China links) | Low (Visit Required) | Useful for business with mainland China. In-person attendance generally required. |
| DBS Hong Kong | Singapore-based multinational bank | Low (Visit Required) | Good digital banking platform. Limited remote options available. |
| Virtual / Digital Banks | Digital-only (ZA Bank, Airstar, etc.) | High (Remote) | Fully remote opening possible in some cases. Lower or no minimum deposit. Best for startups needing speed. |
Regulatory requirements
Annual Compliance Matrix
| Requirement | Deadline | Details |
|---|---|---|
Annual Return (NAR1) | Within 42 days of incorporation anniversary | File with Companies Registry — reports current directors, secretary, registered office, and share capital. |
Profits Tax Return | Within 1 month of issue (extensions available via Block Extension Scheme) | File with IRD along with audited financial statements and tax computation. First return issued ~18 months after incorporation. |
Annual Audit | Before each Annual General Meeting | All HK-incorporated companies must prepare audited financial statements. Auditor must be a CPA registered with the AFRC. |
Business Registration Renewal | Before expiry of current certificate | Maintain a valid Business Registration Certificate (1-year or 3-year basis). Must be displayed at place of business. |
Significant Controllers Register (SCR) | Ongoing — must be kept at registered office at all times | Maintain a register of individuals or entities with significant control (25%+ shareholding, voting rights, or right to appoint/remove directors). |
Notify Changes to CR | Within 15 days of change | Report any changes to directors, company secretary, registered office, or share capital to the Companies Registry. |
Operational Highlights
Technology Voucher Programme (TVP)
Up to HK$600,000 (government funds 75%, max 6 projects)
Local enterprises using technology services to improve productivity
BUD Fund (Branding, Upgrading, Domestic Sales)
Helps enterprises develop brands, restructure operations, and expand sales in mainland China and ASEAN
Hong Kong-registered companies
SME Export Marketing Fund (EMF)
Supports participation in export promotion activities — trade fairs, exhibitions, business missions
SMEs registered in Hong Kong
Re-industrialisation & Technology Training (RTTP)
Government covers 2/3 of training costs for advanced tech (Industry 4.0, AI, IoT)
Local companies training staff in advanced technologies
Patent Application Grant (PAG)
Up to HK$250,000 per patent for search, drafting, and filing costs
Local companies and individuals filing patent applications
Frequently Asked
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