Setting up a Company in Hong Kong the Easy Way in 2024

Hong Kong stands as one of the prime locations for business growth, attracting experienced and new entrepreneurs worldwide with almost 67,000 new companies registered in the first half of 2024 alone.

With favourable tax regimes, a strategic location in Asia, and a highly skilled workforce, it makes sense for businesses to set up a company in Hong Kong.

In this article, we will show you the necessary steps, requirements, costs, and tips for company set-up that will help you get started.
If you do not have time to set up a company on your own, we recommend you check out Statrys' company registration service in Hong Kong, which can help you set up a company and open a business account seamlessly.

Hong Kong is more than just a vibrant city with a great culture, superb infrastructure, and a high standard of living; Hong Kong is renowned as one of the world’s hubs for international trade and investment. Here are four reasons why setting up a company in Hong Kong can help your business thrive.

Company registration in Hong Kong is fast and cost-efficient. You can get a business registration certificate from the Hong Kong Companies Registry within a few days, and the government fees for incorporation are reasonable and transparent.

Hong Kong offers a business-friendly environment with minimal bureaucratic constraints; it does not require minimum registered capital or a local director, and there is no restriction on foreign investment.

Hong Kong is home to over 360,000 SMEs, and it is a dynamic hub for start-up growth and development. This is because of Hong Kong’s adaptability and innovative environment, which are extremely favourable for SMEs. 

According to IMD’s World Competitiveness Center’s 2023 report, Hong Kong ranks among the world’s top ten countries with a competitive economy.

The Hong Kong Government also supports the growth of SMEs, providing a number of funding schemes and resources to help with market expansion. 

That’s why many entrepreneurs use Hong Kong as a strategic location to expand their businesses in the rest of the region.

Hong Kong has a two-tiered profit tax rate for corporations with an exemption for the first HKD 3,000 profit in 2024. For incorporated companies, the first HKD 2 million of profit is taxed at 8.25%, while any profit exceeding HKD 2 million is taxed at 16.5%. This corporate tax system is one of the lowest in Asia and globally. 

Hong Kong's favourable tax regime also includes exemptions for Value-Added Tax (VAT), Goods and Services Tax (GST), and capital gains, making it an attractive destination for businesses seeking to optimize their tax liabilities.

Additionally, it has a territorial tax regime, which means that income generated from offshore operations is generally not subject to Hong Kong's corporate tax.

Hong Kong is one of the best countries for foreign businesses for multiple reasons. 

One of them is the ability for foreigners to completely own their companies, whether as sole proprietors, partnerships, or limited liability companies. 

This means that foreign individuals and companies can establish and operate businesses in Hong Kong without any restrictions on their ownership stake.

This flexibility has made it attractive for foreign businesses to enter and expand in the Hong Kong market, as well as benefit from its favourable business environment and policies. 

Setting up a company in Hong Kong is generally straightforward. You can complete all the necessary paperwork and procedures directly with the Hong Kong Companies Registry yourself, but there are better ways to streamline the process and avoid potential headaches, such as using professional services.: 

Partnering with a professional company incorporation service can make the entire process easier. They handle all the necessary paperwork, filings, and compliance requirements. This option is great if you have limited time and resources to dedicate to the process.

With that said, here’s the full Hong Kong company registration process. 

When setting up your company, you will have to engage with two government departments mainly:

1. Companies Registry: The Companies Registry is the Hong Kong government’s business registration office. It is responsible for overseeing company incorporation and compliance with corporate laws and regulations, following the Companies Ordinance guidelines. It also issues a Certificate of Incorporation, a document that establishes a company as a legal entity.
2. Inland Revenue Department (IRD): The Inland Revenue Department (IRD) in Hong Kong is a government department responsible for administering taxes and duties, where you must file your company tax return every year. The IRD is the issuer of Business Registration Certificates, which grant tax IDs for businesses. 

The actual company registration process begins with choosing a name for your company. It can be in Chinese, English, or both. However, the name must not combine both English and Chinese characters or have been registered before. 

Before submitting your company name, check for availability on the Hong Kong Company Registry's website. Alternatively, you can prepare a list of names and ask your company secretary to check for the available ones.

Additionally, be careful not to use names that are reserved for specific purposes or government entities, contain restricted characters, or offensive or misleading names. You can consult with a local company registration specialist or company secretary to ensure that your chosen name follows the Companies Registry guidelines.

Make sure your company name is not trademarked in Hong Kong or other regions to avoid legal cases. You can verify that your company name is free to use on the Intellectual Property Department’s Online Search System. 

Protect your company name by registering it as a trademark at the Hong Kong Intellectual Property Department. This will grant you exclusive rights to use the name in relation to your goods or services, preventing others from copying or using it without your permission. It can also enhance the credibility of your brand. 

Now that you have your company's name, the next step is to decide which type of legal entity is best for your business. 

Choosing the right business structure is essential in new company formation, as it affects your tax responsibilities, flexibility of business operations, and legal liability.

The three main business structures in Hong Kong are:

1. Private Limited Company: This type of company is owned by a limited number of shareholders and cannot raise capital by selling shares to the public.
2. Sole Proprietorship: A business that is owned and operated by a single individual.
3. Partnership: A business entity formed by two or more individuals who agree to share the profits and losses of the business. 

It is mandatory for all companies in Hong Kong to appoint a local company secretary when registering your company, as they are a direct point of contact for inquiries from authorities, ensuring regulatory compliance and operational transparency.

Your company secretary will be in charge of ensuring that your company is in good standing with the regulations governing the incorporation and maintenance of companies in Hong Kong. They also have other responsibilities, including filing annual returns, managing company seals, and helping with company restructuring.

A company secretary must be an individual Hong Kong resident or a certified company. You can appoint your friends or family, provided they reside in Hong Kong and are familiar with a company secretary’s complex responsibilities. 

To ensure your company complies with laws and regulations, we recommend choosing a qualified company secretary or using company secretarial services with a Hong Kong Trust and Corporate Service Provider (TCSP) licence. 

A company secretary in Hong Kong is not an administrative assistant. They play a crucial role in ensuring that your company is compliant with corporate laws and regulations, including fulfilling the annual compliance requirements. 

Here are some of the key responsibilities of a company secretary:

• Maintaining your company records, such as the register of directors, the register of shareholders, the share certificates, and the significant controller register
• Organising, preparing the agendas for, and taking minutes of your board and annual general meetings
• Arranging your tax filings
• Monitoring changes in relevant legislation and the regulatory environment and taking appropriate action

Your registered office address is the address at which the governmental departments will send correspondence. 

If you do not have a physical office in Hong Kong, you can use virtual office services to receive mail and packages without actually renting the office space. Alternatively, using your company secretary’s address is also common and recommended to ensure you receive all official communications and legal documents. 

If you change your office address, ensure that you fill in the NR1 Form and notify the related authorities to prevent missing important correspondences.

Unlike many countries, the incorporation process in Hong Kong does not require an extensive amount of documentation.

Here are the required documents for company incorporation: 

• NNC1 or NNC1G Form: These are company incorporation forms that require information like the proposed company name, the nature of the business, and the director’s information. The NNC1 form is used for companies limited by shares, while the NNC1G is for companies that are not limited by shares.
• IRBR1 Form: A notice that will be sent to the Business Registration Office.
• Identification Documents: Copies of the directors’ and shareholders’ identification documents, typically Hong Kong ID cards for Hong Kong residents and passports for foreigners.
• Articles of Association: A document outlining the company’s internal governance rules, such as a director appointment and financial management. It also includes information on the share capital amount. 

The forms can be found and downloaded on the Companies Registry's official website. The website also provides examples of Articles of Association, including a simplified form and model articles for private limited companies. 

Incorporating your company with the Hong Kong Companies Registry is a straightforward process.

You can submit the incorporation documents in one of the following ways:

• Online submission through e-Registry Portal
• Send by mail to the Companies Registry’s address to 14/F, Queensway Government Offices, or
• In person at the Shroff Counters at the Companies Registry office.

Within 2 to 6 business days after submission, the Companies Registry will issue two documents evidencing the incorporation of your company. Those documents are:

The certificate of incorporation is issued only once when your company is set up and remains valid during the entire lifetime of the company.

The business registration certificate is only valid for one or three years. It must be renewed every year within one month following the anniversary date of your company's establishment (otherwise, fines will be issued).

At the time you submit the incorporation documents to the Companies Registry, you will be required to pay the applicable government fee.

Below are the incorporation fees for Hong Kong private limited companies. Please refer to the Companies Registry’s official website for other related service fees.

Businesses in certain industries are required to apply for licences and permits to operate, such as restaurants, selling liquors, money service operators, and import and export. Some types of businesses might need more than one licence. 

For example

If you’re opening a restaurant, you must obtain a General Restaurant Licence, a Provisional General Restaurant Licence, and a Liquor Licence from the Food and Environmental Hygiene Department.

You can visit the Trade and Industry Department website to find out which licences, permits, certificates, and approvals are needed for certain businesses.

At the time of incorporation, the Companies Registry will automatically report your company's existence to the Inland Revenue Department.

However, it is your responsibility to keep up with your financial reporting. Typically, your company secretary should handle your reporting and tax notifications, as well as communicate with you on this matter, depending on the level of service your company secretary provides. 

For more information and updates regarding the rules and regulations for tax in Hong Kong, you can check the Hong Kong Government’s website.

Setting up a company in Hong Kong with Statrys is easy. For HKD 7,740, you will have everything you need to start a business, including an online business account with Statrys (subject to approval). 

Simply follow the steps:

1. Visit https://statrys.com/hong-kong-company-registration
2. Click on “Get Started”
3. Fill out your information
4. Complete the payment

And we’ll do the rest! Here is what will be included in the all-inclusive package: 

Incorporation Services

• Verification of the company name availability
• Preparation and filing of incorporation documents
• Articles of Association
• Government fees (HKD3,970 - included in our price)
• Certificate of Incorporation
• Business Registration Certificate (for 1 year) 
• Company chops (corporate seals)
• 24/7 access to company documents on our online platform

Company Secretary Services

• Provision of a Secretary Company (1 year)
• Provision of a Designated Representative (1 year)
• Filing of Annual Return (NAR1)
• Automated reminders of filing deadlines
• Maintenance of the significant controller register
• Maintenance of the statutory records
• Preparation of the Annual General Meeting (AGM)
• All of your statutory records and compliance documents are in one place, accessible online 24/7

Registered Address in Hong Kong

• Registered address for one year
• Scanning and forwarding of mail

Business Account Application

• Get a fast-track application to open a business account with Statrys*, which is subject to approval.