v256.2 · business formation · HK · verified 2026-04
Hong Kong company formation
Entity types, formation timeline, costs, ongoing compliance, banking realities, and 2024-26 regime changes for incorporating in Hong Kong.
Corporate tax
8.25% on first HKD 2M profit; 16.5% above. Only Hong Kong-sourced profits taxed (territorial).
Formation time
1-2 business days online via e-Registry; 5-7 days paper filing
Min capital
HKD 1 (one share at HK$1 par)
Director residency
No HK residency required for directors
Available entity types
Private Limited Company Public Limited Company Branch Office Sole Proprietorship Partnership Open-Ended Fund Company (OFC)
Formation costs & timeline
Cost range: HKD 1,720 Companies Registry fee + HKD 250 BR + service provider HKD 4,000-15,000 typical for first year
Timeline: 1-2 business days online via e-Registry; 5-7 days paper filing
Common setup paths: Online via Companies Registry e-Registry. Service providers: BDO, RSM, Mazars, Sleek HK, OneStop Global, Air Corporate typical HKD 4-15K bundled first year incl. company secretary + registered office.
Rate landscape & compliance
| Corporate tax | 8.25% on first HKD 2M profit; 16.5% above. Only Hong Kong-sourced profits taxed (territorial). |
| Franchise tax | No franchise tax. Business Registration fee HKD 2,200 annually. |
| VAT / GST | 0% — no VAT/GST in HK |
| Treaty network | 47 |
| Shareholder residency | No HK residency required |
| Public register | Companies Registry fully public for directors + shareholders + addresses. Significant Controllers Register (SCR) required internally + on request (not currently public). |
| Annual filings | Annual Return to Companies Registry. Audited financial statements + Profits Tax Return (BIR51) to IRD annually. AGM (now optional for private companies since 2014 amendment). |
| Substance requirements | FSIE regime (Foreign-Sourced Income Exemption) refined 2023-2024 — MNE-group passive income (dividends, interest, IP royalties, gains) now taxable in HK if substance lacking. Standalone HK companies less affected. |
Recent regime changes (2024-2026)
FSIE regime refinements continuing 2023-2025. Pillar Two QDMTT effective 2024. Capital Investment Entrant Scheme (CIES) relaunched March 2024 — HKD 30M+ investment for permanent residency. OFC + LPF (Limited Partnership Fund) frameworks gaining traction.
Strengths
- Territorial taxation — foreign-source income not taxed for individuals + most companies
- 8.25%/16.5% tiered corporate rate among Asia's most competitive
- No GST/VAT, no CGT, no dividends withholding
- Gateway to mainland China via CEPA + RCEP frameworks
- English-language common-law jurisdiction (basic-law-preserved post 1997)
- World-class banking + fund infrastructure
- Open-Ended Fund Company (OFC) framework since 2018
Drawbacks
- FSIE 2023-2024 refinements add complexity for MNE-group passive income
- PRC sovereignty post-1997 — geopolitical risk weighting in counterparty due-diligence
- Smaller 47-treaty network vs Singapore 95+
- Banking opening harder post-2020 sanctions environment
- Cost of living among world's highest
- Pillar Two QDMTT implemented 2024
Typical uses & top industries
Typical uses:
Trading companies (China + ASEAN) Regional HQ (Greater China) Holding companies IP licensing Open-Ended Fund Companies Family offices
Top industries:
Trade + logistics Financial services E-commerce (cross-border China) Apparel + manufacturing trade Real estate Fund management
Source: official Hong Kong registry/authority · Last verified 2026-04
See also: full business-formation directory