Company Formation in Hong Kong

Hong Kong Setup

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  Ongoing Obligations

  Companies must maintain proper accounting records, file annual financial statements, and submit an annual return to the Companies Registry. A Business Registration Certificate must be renewed annually. All companies must also file a profits tax return with the Inland Revenue Department (IRD), typically within one month of issue. Audited financial statements are required, and companies must maintain an updated significant controllers register (SCR) in compliance with anti-money laundering regulations.

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  Capital Setup

  There is no minimum share capital requirement in Hong Kong, though most companies are incorporated with HKD 10,000 divided into 10,000 ordinary shares of HKD 1 each. Shares can be issued in any currency, and there are no restrictions on capital repatriation. Shareholder liability is limited to the unpaid amount on their shares.

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  Business Structure Requirements

  The most common business entity is the Private Limited Company, which provides limited liability and strong legal protection. It requires at least one director, one shareholder, and a company secretary who must be a Hong Kong resident or a local corporate services provider. A registered office address in Hong Kong is also mandatory. There are no nationality or residency restrictions for directors or shareholders, and 100% foreign ownership is allowed.

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  Taxes

  Hong Kong operates a territorial tax system, meaning only income earned within Hong Kong is taxed. The corporate profits tax is 8.25% on the first HKD 2 million of profits and 16.5% thereafter. There is no VAT, no capital gains tax, and no withholding tax on dividends or interest. Hong Kong has over 45 double-tax treaties, enhancing its appeal for international businesses and holding structures.