With the assurance of Sirket.io, in Hong Kong set up the company. Contact one click, get Hong Kong company within 5 days.
Apply NowBoth local and foreign individuals can establish companies in Hong Kong. Foreign investors have the right to establish 100% foreign-owned companies in Hong Kong, and there are no local residency or citizenship requirements for company founders or directors.
The average cost of establishing a company in Hong Kong is $2,000. Company formation in Hong Kong is completed within an average of 5 business days.
Private Limited Company: The most common type of company formed in Hong Kong. The liability of shareholders is limited to the number of shares they own. Public Limited Company: A type of company whose shares are publicly traded and listed on the stock exchange. Suitable for larger businesses and investors. Branch Office: A business unit that allows foreign companies to do business in Hong Kong. It is considered an extension of the parent company. Representative Office: Allows foreign companies to conduct marketing and research activities in Hong Kong, but cannot engage in commercial activities. Partnership : A business structure formed between two or more people in which the partners have unlimited liability. Limited Partnership: A type of partnership in which one partner has unlimited liability and the others have limited liability.
Company formation is quick and online applications are usually processed within an hour. Low tax rates (8.25% for the first HKD 2 million, 16.5% thereafter) and tax exemptions on certain incomes. Its location in the heart of Asia provides easy access to China and other markets. There are no restrictions for foreign investors and no citizenship or visa is required. Its strong financial infrastructure, legal framework based on the English legal system and reputation as an international financial centre provide businesses with a reliable and predictable environment.
Income tax rates in Hong Kong are progressive. As of 2023, the income tax rates for individuals are as follows: HKD 0 2% HKD 50,001 6% HKD 100,001 10% HKD 150,001 14% HKD 200,001 17%
Corporate tax rate in Hong Kong: For first HKD 2 million in income: 8.25% For income over HKD 2 million: 16.5% Additionally, there is no tax on certain incomes in Hong Kong, such as capital gains, VAT and dividend tax
We only set up your company in Hong Kong in 5 business days.
The company establishment fee of HKD3,970 to be paid to the government is included in the price.
Contact us to get information about Accounting and Auditing Packages.
Hong Kong is a unique business center located in the heart of Asia and stands out as one of the world’s most important financial centers. Ranked high on the World Bank’s ease of doing business index, Hong Kong is an ideal location for investors looking to expand into the Asian market. Its strategic location provides easy access to mainland China and other Asian countries. It offers investors a secure business ecosystem with its modern infrastructure, advanced banking system and professional business environment.
Hong Kong’s robust legal system and transparent governance approach inspire confidence in investors. Hong Kong has an autonomous governance structure based on the principle of “One Country, Two Systems”, thus providing access to the Chinese market while maintaining international business standards. It stands out with being one of the economies with the least corruption and strong intellectual property rights protection.
Key Advantages:
These features make Hong Kong an indispensable center for companies looking to grow, especially in the Asian market. It continues to be one of the region’s most important business centers, with the advantages it offers to both local and international companies.
Hong Kong is a business center that stands out with its various advantages for international companies. Its simple and low tax system minimizes the financial burden of companies, while its modern infrastructure and professional business environment provide maximum efficiency to businesses. Thanks to Hong Kong’s territorial tax system, only income from Hong Kong is taxed and income from overseas is generally exempt from tax.
Hong Kong, which requires minimal bureaucracy and paperwork during the business establishment process, offers 100% company ownership to foreign investors. Its advanced banking system and freedom in capital movements create an ideal environment for companies doing international trade. Its skilled workforce and multilingual employee pool provide significant advantages in meeting the human resources needs of global companies.
This package of advantages makes Hong Kong an attractive center for companies looking to grow in the Asian market and conduct global trade. It offers investors a secure business ecosystem with its solid legal infrastructure and transparent business environment, while maximizing operational efficiency with its tax advantages and modern infrastructure.
There are various types of companies available to investors looking to set up a company in Hong Kong. The most common type of company is the Limited Company, but different structures can be chosen depending on the needs of investors. Each type of company has its own advantages and legal requirements. When choosing a company, business objectives, capital structure, risk factors and tax advantages should be taken into consideration.
A Private Limited Company is the most popular type of company in Hong Kong because the partners’ liability is limited to the capital they contribute and the company has a separate legal personality. This structure is ideal for small and medium-sized businesses. There are also options for foreign companies to open a branch office or representative office.
There are basic legal and governance structure requirements that must be met for each type of company to operate in Hong Kong. First, all companies must obtain a Business Registration Certificate from the Hong Kong Inland Revenue Department before they can commence business. This registration must be completed within one month of the company being established. Each company must appoint a company secretary resident in Hong Kong and provide a physical office address. PO Box addresses are not accepted. Companies must also undergo annual audits and report regularly.
In terms of management structure, every company must have at least one individual director. This director can be a citizen of any country and does not have to be a resident of Hong Kong. However, the company secretary must be a resident of Hong Kong. It is possible for the sole shareholder and director to be the same person, but this person cannot be the company secretary. The shareholder structure can vary depending on the type of company; for example, private limited companies can have a maximum of 50 shareholders, while public companies do not have this limit. The company’s board structure should be tailored to the size and type of company. All these requirements are regulated and supervised by the Hong Kong Companies Ordinance.
When choosing between these types of companies, the size of the business, field of activity, risk factors and tax advantages should be taken into consideration. Since each structure has its own advantages and disadvantages, it is important to choose the most appropriate type of company by consulting with professional advisors.
The company formation process in Hong Kong is a well-organized system that is usually fast and efficient. The process can typically be completed within 5-7 business days. The first step is to check if the name of the company you wish to set up is available at the Companies Registry in Hong Kong. After the name approval, the company incorporation documents are prepared and submitted to the Companies Registry. These documents should include the application form, Articles of Association, the identity of the directors and shareholders, and proof of address. Once all the documents are approved, the company’s Certificate of Incorporation and Business Registration Certificate are issued. Foreign investors are not required to be physically present in Hong Kong, however, some banks may request a personal meeting when opening a company bank account. It is also possible to open a bank account online with some Hong Kong banks. It is mandatory to appoint a company secretary based in Hong Kong and to provide a physical office address.
The documents required for establishing a company in Hong Kong are of great importance for the smooth establishment of the company and the fulfillment of legal requirements. These documents, requested by the Hong Kong Companies Registry and the Inland Revenue Department, form the basis of the company establishment process. For foreign investors, the documents must be in English or an official translation must be provided. The preparation of all documents completely and correctly will ensure that the establishment process progresses quickly. These documents must clearly state the company’s legal status, management structure and ownership status.
Important Documents:
These documents may vary depending on the type of company and field of activity. Additionally, some specific sectors may require additional licenses and permits. Preparing the documents accurately and completely is critical to the smooth running of the establishment process.
In Hong Kong, the costs of establishing a company can be divided into two main categories: official fees and operational expenses. The main costs to be paid during the establishment phase are the company registration fee and the business registration fee. A business registration fee of HKD 2,250 is paid for 1 year or HKD 5,950 for 3 years. In addition, annual ongoing costs include company secretarial services, registered office address rent, accounting and auditing fees.
Note: Additional licensing costs may be required for some specific sectors. Other government fees must also be taken into account.
The tax and accounting system in Hong Kong is considered one of the simplest and most efficient in the world. Hong Kong has a territorial tax system, where only income from Hong Kong is taxed. This system offers significant advantages, especially for companies doing international business. The fiscal year usually starts on April 1 and ends on March 31. Every company is required to prepare annual audited financial statements and file tax returns. There is no VAT (Value Added Tax) or GST (Goods and Services Tax) in Hong Kong. This is a significant feature that sets Hong Kong apart from many other countries.
Tax Types and Rates in Hong Kong:
Tax Declaration Processes in Hong Kong:
Tax declaration and financial obligations in Hong Kong are systematically regulated. Every company must submit tax returns regularly from the end of the fiscal year. The tax office (Inland Revenue Department) usually sends out tax return forms on the first working day of April each year, and companies must complete and return these forms within one month. For companies with a tax representative, an extension period may be granted under the “block extension”. An additional one-month extension is granted in the case of electronic filing.
Basic Financial Obligations:
Failure to fulfill these obligations on time and correctly may result in fines and additional sanctions. Therefore, it is highly recommended to use professional accounting and auditing services. Especially for foreign investors, it is very important to work with an experienced accounting firm to comply with local regulations.
For more information about Hong Kong, you can read our blog posts.