Company Registration in Hong Kong

Hong Kong is one of the world’s most business-friendly destinations, known for its strategic location, simple tax regime, and robust legal framework. As a global financial hub with no foreign ownership restrictions and low taxation, it is an ideal gateway for companies looking to access markets in China and the Asia-Pacific region.

Setting up a company in Hong Kong is straightforward, with clear legal requirements and efficient incorporation procedures. Whether you're a startup, SME, or multinational, establishing your business here enhances credibility and opens doors to international opportunities.

Types of Business Entities for Company Registration in Hong Kong

Choosing the right business structure is essential for legal compliance, taxation, and operational efficiency. Below are the most common business entities in Hong Kong:

1. Private Limited Company (Ltd)

• Most popular and flexible structure.

• Separate legal entity; shareholders' liability limited to their investment.

• Can be 100% foreign-owned.

• Requires at least one director and one shareholder (can be the same person).

2. Sole Proprietorship

• Simple to set up and manage.

• Owned by one individual with unlimited liability.

• Ideal for small-scale operations.

3. Partnership

• Formed by two or more people sharing profits, responsibilities, and liabilities.

• Can be a general partnership or limited partnership.

4. Branch Office

• An extension of a foreign parent company.

• Not a separate legal entity; parent company is liable for its operations.

5. Representative Office

• Set up for non-commercial activities like market research.

• Cannot engage in profit-generating business.

Eligibility Criteria for Company Registration in Hong Kong

To register a company in Hong Kong, the following basic eligibility requirements must be met:

 1. Shareholders and Directors

• Minimum of one shareholder and one director (can be the same person).

• Can be an individual or a corporate entity.

• No residency requirement for shareholders or directors.

 2. Company Secretary

• A Hong Kong resident or a Hong Kong-based corporate body must be appointed as the company secretary.

 3. Registered Office Address

• Must have a local Hong Kong address for receiving official correspondence.

• Cannot be a P.O. Box.

 4. Company Name

• Must be unique and not infringe on existing trademarks.

• Can be in English, Chinese, or both.

 5. Share Capital

• No minimum capital requirement.

• Typically, companies are registered with HKD 10,000 divided into 10,000 shares of HKD 1 each.

Procedure for Company Registration in Hong Kong

Setting up a company in Hong Kong is a fast and efficient process. Here’s a step-by-step overview:

Step 1: Choose a Company Name

• Check availability and reserve a unique name in English, Chinese, or both.

Step 2: Prepare Incorporation Documents

• Includes:

  • Articles of Association

  • Incorporation Form (NNC1 for new companies)

  • Details of shareholders, directors, company secretary, and registered office

Step 3: Submit Application to Companies Registry

• File incorporation documents online via the e-Registry or in person.

• Pay the registration fee.

Step 4: Receive Certificate of Incorporation

• Typically issued within 1–3 working days if submitted electronically.

Step 5: Apply for Business Registration Certificate

• Issued by the Inland Revenue Department (IRD).

• Valid for 1 or 3 years.

Step 6: Open a Corporate Bank Account

• Choose from local or international banks operating in Hong Kong.

• May require in-person verification depending on the bank.

Step 7: (Optional) Register for Taxes and Other Licenses

• VAT is not applicable, but other specific business licenses may be required depending on the nature of your business.

Various Taxes Applicable to Registered Companies in Hong Kong

Hong Kong’s tax regime is one of the most business-friendly in the world. Here are the main taxes applicable to companies:

 1. Corporate Profits Tax

• 8.25% on the first HKD 2 million of profits.

• 16.5% on profits above HKD 2 million.

• Only profits derived from Hong Kong are subject to tax (territorial tax system).

 2. No VAT or GST

• Hong Kong does not impose VAT or GST, simplifying compliance.

 3. No Withholding Tax

• No withholding tax on dividends or interest payments.

• Royalties paid to non-residents may be subject to withholding tax (standard rate: 4.95%).

 4. Property Tax

• Companies owning property in Hong Kong are subject to property tax at 15% on net assessable value.

 5. Salaries Tax

• Applies only to employee income, not directly to the company.

• Employers must report and withhold where required.

Documents Required for Company Registration in Hong Kong

To incorporate a company in Hong Kong, the following documents are typically required:

 1. Articles of Association

• Outlines the internal rules of the company and must be submitted during registration.

 2. Incorporation Form (NNC1)

• Includes:

  • Company name

  • Registered address

  • Details of directors, shareholders, and company secretary

  • Liability and share capital structure

 3. Identification Documents

• For individual shareholders/directors: copy of passport and proof of address.

• For corporate shareholders/directors: Certificate of Incorporation and company constitution.

 4. Proof of Registered Office Address

• Recent utility bill, lease agreement, or address proof in Hong Kong.

 5. Consent to Act as Director

• Signed statement by each director confirming their consent to act.

 6. Company Secretary’s Details

• Including name, address, and identification if an individual; business registration number if a company.

Benefits of Company Registration in Hong Kong

Registering a company in Hong Kong offers numerous advantages, especially for international businesses and investors:

 1. Strategic Location

• Gateway to Mainland China and the wider Asia-Pacific region.

• Excellent international transport and trade infrastructure.

 2. Business-Friendly Environment

• Ranked as one of the easiest places to do business globally.

• No foreign ownership restrictions and minimal bureaucracy.

 3. Simple and Low Taxation

• Low corporate tax rates.

• No VAT, capital gains tax, or withholding tax on dividends and interest.

 4. International Reputation

• Hong Kong companies are well-regarded and offer strong credibility with banks, suppliers, and partners.

 5. Free Market and Stable Economy

• Open economy with no restrictions on capital flow or currency exchange.

• Transparent legal system based on English common law.

 6. Fast Company Formation

• Companies can be incorporated within 1–3 working days.

Why Choose YKG GLOBAL for Company Registration in Hong Kong?

At YKG GLOBAL, we provide end-to-end support to ensure your business setup in Hong Kong is smooth, compliant, and optimized for success.

 1. Expert Local and International Knowledge

• Our team combines on-ground expertise with a global outlook, helping you navigate both local laws and international standards.

 2. Complete Incorporation Support

• From name selection to document filing, we handle every step of the process efficiently and transparently.

 3. Tailored Solutions for Every Business

• Whether you’re a startup, SME, or multinational, we offer personalized strategies that match your goals and structure.

 4. Dedicated Relationship Manager

• One point of contact to streamline communication and ensure quick responses.

 5. Ongoing Compliance and Advisory

• Post-registration support for tax filing, accounting, audits, and regulatory compliance to keep your business running smoothly.