Asia-Pacific · Company formation
Company formation in Hong Kong
This offers territorial taxation of foreign-sourced income. It also works as an Asia-Pacific holding or trading gateway, with strong treaty access to mainland China.
At a glance
- Entity
- Private company limited by shares (Limited / Ltd)
- Corporate tax
- Two-tiered profits tax: 8.25% on the first HKD 2m of assessable profits, 16.5% above. Territorial — foreign-sourced profits may be exempt via an offshore claim, though the IRD is scrutinising and rejecting more such claims in 2026 (rates as of 2026).
- Incorporation time
- ~24 hours via the electronic e-Registry for a straightforward filing; realistically 3–5 business days end to end.
- Minimum capital
- None prescribed; typically one share of HKD 1 issued.
- Resident director
- No resident director required (one director of any nationality suffices); however, a Hong Kong-resident company secretary or a licensed TCSP corporate secretary is mandatory.
- Audit
- Mandatory annual statutory audit by an HKICPA-registered CPA for every company regardless of size; no small-company turnover exemption — only companies granted dormant status are excused.
- Remote set-up
- Yes, fully remote via the e-Registry; documents signed electronically with no in-person step.
- Government fee
- HKD 1,545 incorporation fee (e-filing; HKD 1,720 hard copy) to the Companies Registry, plus a HKD 2,350 one-year Business Registration Certificate levied by the IRD from 1 April 2026 (as of 2026).
- Best for
- This offers territorial taxation of foreign-sourced income. It also works as an Asia-Pacific holding or trading gateway, with strong treaty access to mainland China.
The process
- Choose and confirm the availability of an English and/or Chinese company name with the Companies Registry.
- Appoint at least one director and shareholder, secure a Hong Kong-resident company secretary (or licensed TCSP) and a local registered office; gather certified passport and proof-of-address for beneficial owners.
- Prepare the incorporation form (NNC1) and Articles of Association.
- File electronically via the e-Registry with the incorporation fee; the Business Registration Certificate is issued simultaneously.
- Receive the Certificate of Incorporation (usually within one working day) and establish the Significant Controllers Register.
- Open a bank or fintech account and register with the Inland Revenue Department for profits tax.
What can go wrong
- The territorial/offshore exemption is genuine but no longer easy: in 2026 the IRD is rejecting more offshore-profits claims and demands documented proof that profit-generating activity occurred wholly outside Hong Kong.
- Bank account opening is the real bottleneck — traditional banks apply heavy KYC/AML and can take 4–8 weeks; fintech alternatives (Airwallex, Statrys, Aspire) are faster but narrower in scope.
- Every non-dormant company must appoint an HKICPA auditor and be audited annually irrespective of turnover, a recurring cost even for near-dormant holding vehicles.
- Under the Foreign-Sourced Income Exemption (FSIE) regime, foreign passive income (dividends, interest, IP income, disposal gains) received by an MNE entity is taxable unless economic-substance conditions are met — material for pure holding structures; confirm current substance requirements.
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Form a company in Hong Kong?
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