Hong Kong is a prime destination for entrepreneurs, registering nearly 67,000 new companies in the first half of 2024. With its favorable tax regime, strategic location, and skilled workforce, establishing a business in Hong Kong is an attractive option.
Why Set Up a Company in Hong Kong in 2025?
Efficient Process with Low Fees
Company registration is quick and affordable. You can obtain a business registration certificate in just a few days. There are no minimum capital requirements or local director mandates, making it easy for foreign investors.
Dynamic Business Environment
Home to over 360,000 SMEs, Hong Kong fosters startup growth through government support and numerous funding schemes. Its competitive economy ranks among the world's top ten.
Low Corporate Taxes
Hong Kong offers a two-tiered profit tax rate, with the first HKD 2 million taxed at 8.25% and anything above at 16.5%. There are no VAT or capital gains taxes, and offshore income is generally tax-exempt.
Full Ownership for Foreigners
Foreign individuals and companies can fully own their businesses in Hong Kong, providing flexibility and a welcoming environment for international investment.
Steps to Set Up a Company in Hong Kong
Step 1：Familiarize with Local Authorities
Engage with the Companies Registry for incorporation and the Inland Revenue Department for taxation.
Step 2：Choose Your Company Name
Select a unique name in Chinese, English, or both, ensuring it complies with regulations.
Step 3：Decide on a Legal Entity
Choose between a Private Limited Company, Sole Proprietorship, or Partnership based on your business needs.
Step 4：Appoint a Company Secretary
A local company secretary is mandatory for compliance and communication with authorities.
Step 5：Select a Registered Address
The registered address is where official correspondence will be sent. Virtual office services can be utilized if you lack a physical office.
Step 6：Prepare Incorporation Documents
Required documents include the NNC1 or NNC1G form, IRBR1 form, identification documents, and Articles of Association.
Step 7：Submit to the Companies Registry
Submit documents online, by mail, or in person. Expect to receive your incorporation documents within 2-6 business days.
Step 8：Pay the Government Fee
Fees are payable upon submission of incorporation documents.
Step 9：Obtain Relevant Permits and Licences
Certain industries require specific licenses to operate, so check the necessary regulations for your business type.
Step 10：Stay Compliant with Taxes and Reporting
Ensure timely tax reporting and compliance with financial regulations, typically handled by your company secretary.
For a hassle-free setup, consider using SMEBro company registration service, which streamlines the process and helps you open a business account effortlessly.
