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.
Contact us today to launch your Hong Kong company with confidence and expert support.
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.