When a Hong Kong company makes sense
- You trade internationally and want to invoice and get paid in USD, EUR or HKD
- You plan to set up a mainland WFOE and want a Hong Kong parent above it (see Hong Kong holding structures)
- You want a simple, well-understood common-law company for regional business
Requirements
| Requirement | Detail |
|---|---|
| Shareholder | At least one, individual or company, any nationality |
| Director | At least one individual director, any nationality |
| Company secretary | Hong Kong resident individual or Hong Kong company |
| Registered office | A physical address in Hong Kong |
| Significant controllers register | Kept at the registered office |
Tax
Hong Kong taxes profits sourced in Hong Kong only. Corporations pay 8.25% on the first HKD 2 million of assessable profits and 16.5% on the rest. There is no VAT, no tax on dividends and no capital gains tax.
Ongoing compliance
An annual return to the Companies Registry, business registration renewal, audited accounts and a profits tax return each year. We can handle all of it.
Frequently asked questions
Can a foreigner be the only director and shareholder?
Yes. One person can be both the sole shareholder and the sole director, and they don't need to live in Hong Kong. The company secretary must be a Hong Kong resident or a Hong Kong company, which we provide.
Is a Hong Kong company the same as a mainland China company?
No. Hong Kong has its own legal and tax system. A Hong Kong company can't invoice in RMB or hire staff in mainland China; for that you need a mainland entity such as a WFOE, which the Hong Kong company can own.
How long does opening a bank account take?
Banks carry out their own checks on the owners and the business. Expect anywhere from a couple of weeks to a few months, depending on the bank and how clear your business model and documents are.