Company Formation & Corporate Services in Hong Kong
Hong Kong is a common-law gateway to Asia, with fast incorporation, no VAT and a profits tax that applies only to Hong Kong-sourced profits. That last point is where most misunderstandings start: offshore treatment is a claim you have to support, not a status you get by registering. We set the company up so the claim holds.
Best For / Think Twice If
Best for
Regional holding and trading companies, businesses trading with mainland China and Asia, and groups wanting a common-law base with an international banking sector.
Think twice if
You expect all foreign income to be tax-free with no activity to show for it — offshore claims and the foreign-sourced income rules both look at where the work is really done.
Ownership & Tax Snapshot
Hong Kong permits 100% foreign ownership, with no residency requirement for shareholders or directors. A company needs at least one director who is an individual, a company secretary resident in Hong Kong (or a Hong Kong company), and a registered office in Hong Kong.
Profits tax applies only to profits arising in or derived from Hong Kong. Corporations pay 8.25% on the first HK$2 million of assessable profits and 16.5% on the rest under the two-tiered rates. Since 2023, certain foreign-sourced passive income received in Hong Kong is taxable unless economic substance or other exemption conditions are met. There is no VAT or sales tax.
The Setup Process
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Structure and profit-sourcing assessment.
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Name check and incorporation with the Companies Registry, with business registration at the same time.
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Company secretary and registered office in Hong Kong.
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Significant controllers register.
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Bank account opening, with full KYC preparation.
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Accounting and audit arrangements for the first profits tax return.
Hong Kong Registrars & Regulators
| Role | |
|---|---|
| Companies Registry | Incorporation, annual returns and company records |
| Inland Revenue Department (IRD) | Business registration and profits tax |
| Securities and Futures Commission (SFC) | Licensing for regulated securities and asset-management activity only |
Ongoing Compliance Calendar
Annual
- Annual return to the Companies Registry
- Business registration renewal
- Audited financial statements
- Profits tax return
As applicable
- Employer’s return of remuneration once you hire
Ad hoc
- Significant controllers register updates
- Filings on any change of directors, secretary or registered office
Hong Kong At A Glance
Main Industries
Why Choose This Market
- Gateway to Asia: A long-established base for trade with mainland China and the wider region.
- Simple, territorial tax: Two-tier profits tax on Hong Kong-sourced profits, and no VAT.
- Common law and finance: A common-law system and one of Asia’s major financial centres.
Questions We Are Actually Asked
Your question is not here? Put it to an advisor who works on Hong Kong every week.
Book a ConsultationWhat is the profits tax rate in Hong Kong?
Corporations pay 8.25% on the first HK$2 million of assessable profits and 16.5% on the rest. Only profits arising in or derived from Hong Kong are taxed.
Is offshore income tax-free in Hong Kong?
Profits sourced outside Hong Kong are not subject to profits tax, but you must be able to show where the profit-generating work is done. Since 2023, certain foreign-sourced passive income is also taxable unless substance or other conditions are met.
Do I need a local director or company secretary?
Directors can live anywhere, but at least one must be an individual. The company secretary must be a Hong Kong resident or a Hong Kong company. We can act as company secretary.
Is an audit required for a Hong Kong company?
Yes. Hong Kong companies must have their financial statements audited by a Hong Kong certified public accountant each year, and the audited accounts support the profits tax return.
Can a Hong Kong company open a bank account easily?
Banks apply thorough KYC, especially for companies with non-resident owners. A clear business purpose and complete documents make the process much smoother, so we prepare that file with you.
Checked against Inland Revenue Department guidance on the two-tiered profits tax rates, 17 Oct 2026.
Primary source Inland Revenue Department (ird.gov.hk)
Regulatory and tax rules change. This page is general information about Hong Kong, not tax or legal advice — we confirm the current position for your activity before you commit to a structure.
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Explore →Not Sure Which Structure Fits?
Bring us the business you actually plan to run in Hong Kong, and we will tell you honestly whether this is the right jurisdiction for it — and which structure inside it makes sense.