Starting a business in Hong Kong is a great move for entrepreneurs and inventors, because Hong Kong is one of Asia's most dynamic and business-friendly markets. Hong Kong consistently ranks among the easiest places in the world to do business, and right now you will know it why. We will give you a guide on how to start a business with careful planning, compliance with local laws and regulations. It's time to establish and grow your business in Hong Kong with confidence.
What type of business structures are available in Hong Kong?
There are several business structures available in Hong Kong, each suited to different business needs, risk levels, and tax implications. Here are the main types of business structures:
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Sole proprietorship
Owned by one individual, the legal entity is not separate from the owner, unlimited personal liability, profits taxed as personal income, easy and inexpensive to set up. (Best for freelancers and low-risk businesses).
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Partnership
Owned by two or more individuals or companies, general partnership with all partners shares unlimited liability, limited partnership with at least one general partner unlimited liability and one limited partner to capital invested, legal entity not separate from the partners, each partner pays tax on their share of profits. (Best for professional services like law, accounting, consulting).
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Private limited company (Ltd.)
Owned by 1 to 50 shareholders, the legal entity separates from its owners, liability limited to shareholders' investment, profits taxed at the corporate rate (8.25%-16.5%). Easier to raise capital and limited liability, also have good credibility with banks and clients. (Best for startups and SMEs).
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Public limited company
Owned by unlimited number of shareholders, the legal entity separates from its owners, liability limited to shareholder investment, can raise significant capital even though it has high regulatory and compliance obligations. (Best for large businesses seeking public investment).
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Branch office
Used by foreign companies, the legal entity is not separate from the parent company, the parent company is fully liable, can operate under the parent company's name. (Best for foreign businesses testing the Hong Kong market).
What’s the first step to starting a business in Hong Kong?
The first step to starting a business in Hong Kong is choosing the right business structure. Most entrepreneurs choose a Private limited company because it offers: limited liability, separate legal identity, better access to capital, more credibility with banks and clients. After selecting your structure, next is to choose a unique company name. Hong Kong allows English, Chinese, or bilingual names. The name must not be identical to an existing registered name, should not imply government affiliation or offensive meaning. (Check availability via the Companies Registry's name search).
How do I register my company in Hong Kong?
You need to prepare the required documents if you already have a company name and are approved. You'll need the following: Articles of association, Incorporation form (NNC1) if you have a company with a share capital (Company name, registered address in Hong Kong, details of directors and shareholders, company secretary or licensed firm, share capital structure), copies of directors' and shareholders' passport or HKID, proof of residential address.
Guide to SME Loans in Hong Kong for Business Growth
Submit the application to the Companies Registry, you can register via online (e-Registry portal) or in person to the Companies Registry Office. Next, pay government fees, and may vary slightly depending on updates or promotions. If accepted, you will get a Certificate of Incorporation and Business Registration Certificate.
How long does it take to register a company?
The time it takes to register a company in Hong Kong depends on the application method and whether your documents are in order. Online applications are highly recommended, with a processing time of 1-2 working days if all documents are correct, and you can apply through the e-Registry. If you want to do it in person or by mail, the processing time is 4-7 working days, sometimes longer.
As a last resort, if you don't have much time to process it yourself, use a professional service provider. You only have to wait 2-5 working days, including document preparation. The service provider will handle everything, help avoid mistakes and delays, and can assist with name checks, bank referrals, and compliance.
Do I need a business bank account?
Yes, having a business bank account is highly recommended and practically necessary. Why is it essential? Because a business is required to maintain proper financial records and ensures your company's income and expenses are separate from your personal funds. A dedicated corporate account adds legitimacy and trust when invoicing clients or receiving payments. Plus, you will need a business bank account if you are applying for business loans, payment gateways and government schemes.
Are there ongoing compliance requirements?
Yes, all companies registered in Hong Kong are subject to ongoing compliance and regulatory requirements under the Companies Ordinance and Inland Revenue Department (IRD). If you fail to meet them, your business can get fines, penalties, or even company deregistration. All you need to do is file the Annual Return with the Companies Registry, submit audited financial statements annually, and file Profits Tax Return to the Inland Revenue Department. Filing deadlines are strict, and penalties apply for non-compliance.
One stop solution to start a business in Hong Kong
If you're looking for a practical, comprehensive solution to start and grow your business in Hong Kong, SMEBrother is the right partner. Designed specifically for startups and small and medium-sized enterprises (SMEs), we offer a comprehensive suite of services covering every step of the business journey, from company registration and bank account opening to document preparation, accounting, auditing, account tax return, and even SME financing support.
Whether you're a local entrepreneur or a foreign investor, SMEBrother simplifies complex administrative processes so you can focus on building your business. With experienced consultants, transparent pricing, and fast turnaround times, SMEBrother truly serves as a one-stop platform for launching and growing your business in one of the world's most business-friendly economies.
We hope that we can grasp business opportunities for Hong Kong enterprises and open up a better future.
