International Trade
Advantages of Hong Kong Company Formation
- Reputable Offshore Financial Centre
- Ideal as an Operational Company
- Tax Free Regime for Offshore Profits
- Fast and Easy Company Registration Process
- Opening of Business Account in Digital Bank in Just a Few Days
Privacy Score
This score demonstrates how much privacy can be maintained by the company and the rate of disclosure of the corporate information for open public scrutiny. The higher the rate, the more privacy the company can enjoy. All rates are based on the open sources and subjective view of Astra Trust.
85
0
100
Tax Haven Score
This score demonstrates the tax burden applicable to the company and the jurisdiction as a whole. The higher the score, the lower are tax rates, and the easier is regulation. All scores are based on the open sources and subjective view of Astra Trust.
76
0
100
Reputation
This score demonstrates the reputation of the company and jurisdiction in the financial and business circles. The higher the score, the more favourable is the treatment by financial institutions, authorities, and counterparties. All scores are based on the open sources and subjective view of Astra Trust.
Very Good
Find out more about Hong Kong
Hong Kong is a former British colony, now officially the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR). The city was transferred to Chinese authorities in 1997, following the end of the 99-year lease agreement between the British Empire and China.
Hong Kong has proven itself to be a highly successful city. Today it is one of the most buoyant financial centres and trading ports in the world. Its currency, the Hong Kong dollar, is among the most traded currencies in the world.
Although Hong Kong is now part of China, the territory is governed according to the “one country, two systems” principle. Under this principle, the laws of mainland China do not apply to the territory of Hong Kong. Instead, Hong Kong retains its own legal system based on English common law.
Company formation services in Hong Kong are wide-ranging. The city is a premier financial centre with a strong focus on one of the world’s leading economies – China. Trusts are recognised under Hong Kong law and are especially popular in this jurisdiction. In addition, some of the world’s largest banks operate in the city. Among them are HSBC, Standard Chartered and DBS which serve the large Hong Kong economy.
It is Possible to Set Up the Following Types of Offshore Companies in Hong Kong:
- Company Limited by Shares (Ltd);
- Company Limited by Guarantee (Ltd);
- Unlimited Company;
- Partnership (LP); and
- Limited Partnership (LLP).
Why Set Up a Hong Kong Company?
Hong Kong is one of the oldest and leading financial centres in the world. Its unique position makes it a primary gateway to mainland China and other Asian countries.
Primary Financial Centre in Asia
Offshore company registration in Hong Kong opens up considerable opportunities to operate in Asia and globally within its low tax environment. The territory has a longstanding reputation as a world-leading business hub. Therefore, Hong Kong companies are recognised by business partners, banks and other institutions for the jurisdiction’s excellent reputation as a renowned financial centre.
Territorial Tax System
The territorial tax system allows for the effective optimisation of taxation to 0% for profits not derived from the territory of Hong Kong. No VAT or other indirect taxes are applicable.
Effective company registration and sophisticated financial infrastructure make Hong Kong company formation processes quick and easy. In addition, there are many certified accountants, lawyers and trust professionals residing in Hong Kong, all of whom are ready to serve the needs of your business. Astra Trust can help you incorporate a Hong Kong company cost-effectively and quickly.
Excellent Financial Centre for Banking
Hong Kong company formation with a bank account at a local bank is also possible. There are numerous reliable and highly prestigious banks operating within the territory. It is possible to incorporate a company and open a bank account without a personal visit to Hong Kong. Astra Trust can assist with Hong Kong company formation with a bank account at a local or foreign bank. Other services such as a local director and nominee shareholders are also available.
By setting up a company in Hong Kong, you can create a reputable tax-effective structure that will bring value to your business.
Hong Kong Company Formation is the Best Option for the Following Business Activities:
E-commerce
IP rights holding
Holding Company
Taxation of the Hong Kong Company
| Currency | Hong Kong Dollar (HK$) |
| Corporate Income Tax | 0/8.25/16.5% |
| Withholding Tax | 0% |
| Capital Gains Tax | 0% |
| Inheritance Tax | 0% |
| VAT | 0% |
| Exchange Controls | No |
Taxation in Hong Kong
Taxation in Hong Kong is based on a territorial tax system. This means that taxation in Hong Kong only applies to income derived within the territory. Therefore, the tax resident status of an individual is generally irrelevant in determining their tax liability in Hong Kong.
Consequently, both residents and non-residents are taxed in the same manner on profits earned in the territory of Hong Kong. Moreover, Hong Kong does not levy an income tax on all types of income from its territory, but rather a set of special taxes that apply only to certain types of income. That is where offshore company registration in Hong Kong can provide significant tax benefits to a business.
Offshore Profit Claim
To benefit from the offshore status the Hong Kong company shall submit the offshore claim to the tax authorities with evidence that no income was generated from the business transactions in the territory of Hong Kong. After the confirmation of such a claim by the tax authorities, the Hong Kong company would benefit from a 0% corporate profit tax rate.
Onshore Tax Rates
As for the companies that do not fall under the scope of offshore claims and cannot benefit from 0% tax, the Corporate Profit Tax rates are still very low. The small and mid-sized companies with profits under the first HK$ 2 million cap are taxed at the rate of 8.25%. All profits above HK$ 2 million will be taxed at a rate of 16.5%.
Dividends distributed by a Hong Kong entity are not subject to tax in the territory of Hong Kong. The same applies to interest paid from a Hong Kong entity to overseas legal entities.
There is no capital gains tax or value-added tax (VAT) in Hong Kong.
All of this provides ample opportunities to optimise international tax burdens by Hong Kong company formation.
The official currency is the Hong Kong dollar (HK$), which is extremely stable. All other major currencies are also widely used in Hong Kong.
There are no currency exchange controls in Hong Kong.
Corporate Legislation in Hong Kong
One Country Two Systems
Following the principle of “one country, two systems”, Hong Kong’s legislation differs from that of mainland China. It is based on common law and equity principles, which are supported by statutory law. For this reason, the company set up in Hong Kong is considerably more appealing than in mainland China.
Hong Kong is authorised to exercise its own independent judicial power. The highest court in the territory is the Court of Final Appeal of Hong Kong.
Common Law Legal System
Since the legislation is based on common law, trusts are recognised in Hong Kong and can be established with a local trust company. Indeed, trusts are quite popular in this jurisdiction. Although there are no specific provisions in Hong Kong law to protect trust assets, this is a jurisdiction of choice for many who wish to establish their own trust.
Hong Kong Limited Company Model
The Hong Kong companies law is based on the English model of the limited company. Regarding the UBO reporting, Hong Kong adopted the UK model of Persons with Significant Control reporting, with the difference that such a register is not accessible by the public and is privately stored by the secretary of the company at the registered office.
Hong Kong Companies Registry
The Hong Kong Companies Registry is the principal authority responsible for keeping a register of companies and ensuring that Hong Kong company incorporation is processed in accordance with the Companies Ordinance.
Company law regulating Hong Kong incorporation allows for various types of entities, such as limited and unlimited companies, as well as general and limited partnerships. The vast majority of offshore companies in Hong Kong are companies limited by shares.
The Following Legislation Regulates Company Formation in Hong Kong:
Process of Hong Kong company registration
Stage 1
Contact us for more information and quotes. We answer within three hours!
Stage 2
Fill in a form, provide us with the required documents and make a payment.
Stage 3
Receive the scanned incorporation documents within two days, and hard copies by courier in up to seven days.
Required Documents To Incorporate In Hong Kong
To incorporate a Hong Kong company the following KYC documents are required:
- Proof of ID for all directors, shareholders and beneficial owners
- Proof of address for all directors, shareholders and beneficial owners
- Selfie with a passport for the beneficial owners
- KYC form provided by your personal manager in Astra Trust
For more information click below to receive certification instructions and requirements.
Documents And Services You Receive After Hong Kong Company Formation
Hong Kong Company Formation Fees Include the Following Services:
- Company name search in the Register of Companies for availability
- Revision of KYC and CDD documents
- Payment of Government Fees
- Necessary filings to the Registrar of Companies
- Drafting of activation corporate documents upon incorporation of a Hong Kong company
- Hong Kong Registered Address services for 1 year
- Hong Kong Corporate Secretary services for 1 year
- Compliance Fees
- Full administrative support 24/7 from your personal manager in Astra Trust
After Company Set Up in Hong Kong, you Will Receive The Following Hong Kong Company Documents:
- Certificate of Incorporation issued by the Hong Kong company registry
- Memorandum of Association stamped by the Hong Kong company registry
- Articles of Association stamped by the Hong Kong company registry
- Business Registration Certificate
- Register of directors
- Register of shareholders
- Register of significant controllers
- Resolution of appointment of first directors
- Written resolution adopted by directors upon incorporation
- Share certificate
- Consent letter of the director
Need More Help To Setup Your Offshore Company in Hong Kong?
Just get in touch with us. We typically respond within 2 hours
Company Name In Hong Kong
According to the Hong Kong Companies Ordinance (Chapter 622), 2014, the name of a Hong Kong company shall not be registered:
- if the company has an English name only, a name without “Limited” as the last word of the name; or
- if the company has a Chinese name only, a name without “有限公司” as the last four characters of the name;
- if the company has both an English name and a Chinese name-
- (i) an English name without “Limited” as the last word of the name; and
- (ii) a Chinese name without “有限公司” as the last four characters of the name.
The proposed company name shall not be identical or similar to the name under which another company is registered in Hong Kong.
The company name can be expressed in English and Chinese.
The name shall be stated in the Memorandum and Articles of Association of the Hong Kong company upon incorporation.
An online application system in the Hong Kong company register allows for quick and efficient operations. In addition, all name checks and reservations are free of charge.
Board Of Directors And Shareholders Of Hong Kong Company
Every private company is required to have at least one natural person to act as a director who is over the age of 18 and who cannot be bankrupt or have been convicted. The minimum number of directors of a Hong Kong international business company is one. Directors can be individuals or legal persons of any nationality and residency.
The board of directors meetings can take place anywhere in the world.
Shareholders of a Hong Kong limited company can be individuals over 18 years old or legal entities of any nationality and residency. The minimum number of shareholders is one, and the maximum number is fifty.
Each Hong Kong company shall appoint a local corporate secretary who is a resident of Hong Kong. The company secretary is responsible for maintaining the corporate books and accounting records of the company and must ensure it complies with the necessary statutory requirements.
A company must appoint at least one designated representative who will be responsible for filing and maintaining the company’s Significant Controllers Register and who will answer to a law enforcement officer.
When setting up your Hong Kong company, it is possible to appoint a nominee director and a shareholder. Astra Trust can assist you in all matters relating to Hong Kong company incorporation, appointment of nominees and opening of bank accounts.
Share Capital of Hong Kong Company And Types of Companies
The share capital of a Hong Kong limited company can be of any value and currency as stated in the Memorandum and Articles of Association.
The following companies can be set up in Hong Kong:
- Company limited by shares
- Company limited by guarantee
- Company limited by shares and guarantee
The standard authorised share capital is usually USD 50,000 with a par value of USD 1 each. The issued share capital can be anything from one share of any par value, or 50,000 shares of par value of USD 1 each.
The authorised share capital can be both par value and no par value.
A Hong Kong company may issue different classes of shares as stated in its Memorandum of Association.
Bearer shares are prohibited from being issued in Hong Kong.
Privacy of a Hong Kong Company
The registers of directors, shareholders and Significant Controllers Register shall be stored at the registered office by the secretary of the Hong Kong company.
The register of directors and secretaries are to be submitted to the registrar upon incorporation of the Hong Kong company. The return of shares allotment shall be submitted to the registrar disclosing the identity of the shareholders.
The Significant Controllers Register must be kept at the registered office at all times and be available for inspection by the Hong Kong authorities. It does not have to be submitted to the registrar and is not available to the public. Only the bodies listed below are entitled to inspect the SCR of a Hong Kong company:
- Companies Registry of Hong Kong;
- Customs and Excise Department;
- Hong Kong Monetary Authority;
- Immigration Department;
- Inland Revenue Department;
- Hong Kong Police Force;
- Independent Commission Against Corruption;
- Insurance Authority; and
- Securities and Futures Commission.
The privacy of a Hong Kong limited company can be further enhanced by using the services of a director and a nominee shareholder. Beneficial ownership can be structured through trusts or foundations.
If you would like to know more about the company setup in Hong Kong, please contact the Astra Trust team to receive more detailed information free of charge.
Economic Substance Requirements In Hong Kong
At present, there are no economic substance requirements in place in Hong Kong.
Reporting requirements in Hong Kong
Every company in Hong Kong is required to file a corporate annual return with the Companies Registry containing details of share capital, charges, directors, secretary and members of the company.
In addition, all Hong Kong companies are obliged to submit a profits tax return and audited accounts to the Inland Revenue Department on an annual basis. The first financial year-end can be fixed at any date within 18 months of the date of incorporation of the company, and the same financial year-end date must be followed in subsequent years.
The auditors shall be independent of the company and qualified in accordance with the Hong Kong Professional Accountants Ordinance.
Key Features of Hong Kong company
General Information
- Jurisdiction – Special Administrative Region (SAR)
- Entity Type – Limited Company
- Corporate Tax – 0%
- Currency – HK$
- Currency Exchange Control – No
- Legal Framework – Common law
- Recognition of Trust – Recognised
- Court of Final Appeal – The Court of Final Appeal of Hong Kong
Business Activity Restrictions
- Business Activity Restrictions – No. Subject to standard licensed types of activities
- Economic Substance Requirements – Not applicable
- Prohibition of Business Within Hong Kong – Not applicable
Requirements to Directors
- Register of Directors – Publicly opened
- Minimum Number of Directors – 1
- Corporate Director – Available
- Local Director – Not required
- Nominee Director – Available
Requirements to Secretary
- Secretary – Required
- Local Secretary – Required
Requirements to Shareholders
- Register of Shareholders – Publicly opened
- Minimum Number of Shareholders – 1
- Corporate Shareholder – Available
- Annual General Meeting – Not required
- Location of Meetings – Anywhere in the world
- Nominee Shareholder – Available
Share capital
- Minimum Authorised Share Capital – No requirements
- Standard Authorised Share Capital – USD 50,000
- Minimum Issued Share Capital – USD 1
- Currency of Share Capital – USD or any other
Reporting Requirements
- Preparation of Accounts – Required on an annual basis
- Filing of Annual Return – Required on an annual basis
- Publicity of Annual Return – Publicly opened
- Audited Accounts – Required on an annual basis
Other features
- Redomiciliation to/from Jurisdiction – Permitted
- Shelf companies – Available
Frequently Asked Questions
What are the benefits of Hong Kong company formation?
Key benefits include a low corporate tax rate, no capital gains tax, access to international markets, a robust legal system, and a reputation as a global financial hub.
What types of companies can be formed in Hong Kong?
The most common type is a Private Limited Company, but other forms include Public Limited Companies, Sole Proprietorships, and Partnerships.
What is the minimum capital requirement for Hong Kong company formation?
There is no minimum capital requirement to establish a company, however, it is common to set the initial share capital at HKD 10,000.
What are the requirements for Hong Kong company formation?
Requirements include having at least one director (who can be a foreign national), a company secretary, and a registered office address in Hong Kong.
What are the ongoing compliance requirements after Hong Kong company formation?
Ongoing compliance includes maintaining proper accounting records, filing annual returns, and holding regular meetings of directors and shareholders. Astra Trust offers full support that covers all the requirements.
What are the costs associated with Hong Kong company formation?
Costs can vary depending on the service provider but typically include registration fees, business licence fees, and ongoing compliance costs.
Is it necessary to have an audit for my Hong Kong company?
An audit is generally required unless your company qualifies for exemption based on size criteria, such as revenue and total assets.
Is it necessary to have a local resident director for Hong Kong company formation?
No, it is not mandatory to have a local resident director; however, appointing a qualified company secretary is required.
How long does the Hong Kong company formation process take?
The process typically takes around 2 to 6 days if all documents are in order and submitted correctly.
Do I need to register for taxes after Hong Kong company formation?
Yes, you must apply for a Business Registration Certificate and will need to file annual profits tax returns. Astra Trust assists with this matter
Can I change the company structure after Hong Kong company formation?
Yes, changes to the company structure can be made, such as changes in shareholders or directors, subject to compliance with relevant regulations.
Are there any restrictions on foreign ownership in Hong Kong company formation?
There are no restrictions on foreign ownership; individuals or entities from anywhere in the world can fully own a Hong Kong company.
