Hong Kong is a Special Administrative Region (SAR) of the People’s Republic of China with a high degree of autonomy, an independent tax regime, and a legal system based on English common law. Thanks to minimal taxes, a reliable legal environment, and international respectability, Hong Kong is considered a top-tier jurisdiction in Asia.
Key tax advantages and features
- Corporate tax only on income derived from Hong Kong (territorial principle)
- No dividend, interest, capital gains tax, or VAT
- 100% foreign ownership allowed
- CEPA agreement for simplified access to mainland China
- Transparent legal framework based on common law
Main business vehicles in Hong Kong
PRIVATE LIMITED COMPANY
| Minimum share capital | 1 HKD |
| Shareholder liability | Limited to capital |
| Public registry | Yes |
| Bearer shares | Not allowed |
| Tax ID (TIN) | Yes |
| Accounting | Mandatory |
| Audit | Mandatory (certified HK auditor) |
| Nominee services | Allowed |
| Incorporation time | Up to 3 weeks |
Tax regime in Hong Kong
| Tax / Regime | Rate |
|---|---|
| Corporate profits tax | 8.25% (up to 2M HKD), 16.5% above |
| VAT / GST | Not applicable |
| Dividend / interest / royalties tax | 0% |
| Capital gains tax | 0% |
| Inheritance / gift tax | 0% |
Compliance and reporting
- Annual Profits Tax Return (PTR) required
- Annual audited financial statements required
- First PTR issued ~18 months after incorporation
- IRD evaluates tax liability annually
- Accounting records must be kept for 7 years minimum
Who should use a Hong Kong company
- E-commerce and digital service providers
- China-facing trading companies
- International consulting and online agencies
- Startups, tech companies, and holdings
How to set up a company in Hong Kong
- Choose company type (usually Private Limited Company)
- Prepare documentation and name clearance
- Register with Companies Registry and obtain Business Registration (BR)
- Open a bank account (optional)
- Prepare accounting and audit infrastructure
Interested in more?
Complexity
Establishment of the company, its settlement, delivery of apostilled documentation, bookkeeping. All under one agency.
Support
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Management
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Fair price
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