A Guide to Company Setup in Hong Kong

Kristina Coluccia
Dec 3, 2024
3 min read

Hong Kong consistently ranks as one of the best places in the world to start and run a business. With its low-tax regime, world-class infrastructure, and proximity to Mainland China, it’s a favored destination for entrepreneurs, startups, and multinational corporations.

This guide will walk you through everything you need to know about company setup in Hong Kong, from choosing the right structure to incorporation, compliance, and ongoing operations.

Why Set Up a Company in Hong Kong?

Hong Kong offers numerous advantages for businesses:

Low corporate taxes (8.25% on the first HK$2 million in profits, 16.5% thereafter)
No VAT, no capital gains tax, and no withholding tax
Strategic location in Asia with access to China
Free flow of capital and currency
100% foreign ownership allowed
Strong legal and regulatory framework

Step-by-Step Guide to Setting Up a Company in Hong Kong

1. Choose a Business Structure

The most common structures include:

Private Limited Company (most popular and recommended)
Sole Proprietorship
Partnership
Branch Office or Representative Office (for foreign companies)

A private limited company offers limited liability, credibility, and flexibility for growth.

2. Select and Reserve Your Company Name

Choose an English or Chinese name (or both)
Ensure it’s unique and not misleading
Perform a name search on the Companies Registry database

Your service provider can assist with clearance and reservation.

3. Prepare Incorporation Documents

Required documents include:

Articles of Association
Form NNC1 (for new companies with share capital)
Details of directors, shareholders, and company secretary
Registered business address in Hong Kong

A company must have:

At least one director (individual, aged 18+)
At least one shareholder
A company secretary (resident in Hong Kong)
A local registered address

4. Register with the Companies Registry

Submit your documents to the Hong Kong Companies Registry. You will receive:

Certificate of Incorporation
Business Registration Certificate (issued by the Inland Revenue Department)

Registration typically takes 1–5 working days.

5. Open a Corporate Bank Account

Opening a corporate bank account requires:

Certified copies of incorporation documents
Business plan and proof of operations
Identity documents for directors and shareholders

Due to stringent compliance checks, many entrepreneurs also explore virtual banks or fintech options for faster onboarding.

6. Fulfill Ongoing Compliance Obligations

After incorporation, your company must comply with several annual requirements:

Annual Return Filing with the Companies Registry
Audited financial statements
Profits Tax Return (PTR) to the Inland Revenue Department
Business registration renewal
Maintenance of statutory records

Non-compliance can lead to penalties or business suspension.

7. Secure Additional Licenses (If Required)

Some industries require extra licensing, such as:

F&B and hospitality
Education and training
Finance and insurance
Import/export businesses

Make sure to check licensing requirements before launching operations.

Timeframe and Costs

Setup time: Typically 1–5 business days
Government fees: HK$1,720 for company incorporation + HK$250 for a 1-year Business Registration Certificate
Service provider fees: Vary depending on scope (incorporation, secretarial, accounting, etc.)

Set Up Right with Woodburn

Woodburn Accountants & Advisors offers end-to-end company setup services in Hong Kong, tailored for entrepreneurs, SMEs, and multinational firms entering the Asian market.

Our services include:

Incorporation and name registration
Business licensing and visa support
Corporate bank account setup
Ongoing compliance, tax, and audit services
Market entry advisory for China and Asia-Pacific

Whether you're a first-time entrepreneur or expanding a global operation, Woodburn ensures a smooth, fast, and compliant setup process.

Woodburn Accountants & Advisors is one of China and Hong Kong’s most trusted business setup advisory firms.

Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.