How to Open a Company in Hong Kong: Requirements, Costs and Tax (2026)

Key points

• Foreigners can own 100% of a Hong Kong private limited company, with no minimum capital and no requirement for a resident director.
• Every company needs at least one director who is a natural person, at least one shareholder, a company secretary resident in Hong Kong and a registered office in Hong Kong.
• Government fees for the first year are about HK$3,895 online: HK$1,545 for incorporation plus HK$2,350 for the business registration certificate from April 2026.
• Profits tax is territorial and two-tiered: 8.25% on the first HK$2 million of Hong Kong-sourced profits and 16.5% above. There is no VAT, capital gains tax or dividend withholding.
• Hong Kong requires audited accounts every year, and since 2023 multinational groups need economic substance to keep certain foreign income untaxed.

How do you open a company in Hong Kong?

How do you open a company in Hong Kong? You reserve a name, appoint at least one director, one shareholder and a Hong Kong-resident company secretary, provide a registered office address in Hong Kong, and file the incorporation form with the Companies Registry, together with the business registration application. Electronic applications are usually approved within a few working days. The company then opens a bank account, keeps a register of significant controllers and files audited accounts and tax returns every year.

Hong Kong has been a gateway between China and the rest of the world for more than a century. It combines English common law, a freely convertible currency pegged to the U.S. dollar, one of the world's busiest ports and airports, and a simple, low tax system. For trading companies, Asian holding structures and businesses that work with mainland China, it remains one of the most efficient bases in the region.

Why Hong Kong?

• Low, simple taxation: profits tax of 8.25% and 16.5%, no sales tax or VAT, no capital gains tax and no tax on dividends paid to shareholders.
• Territorial principle: only profits arising in or derived from Hong Kong are taxed.
• Access to China: a comprehensive tax arrangement with the mainland reduces withholding on dividends to 5% for qualifying Hong Kong holding companies.
• Common law and courts: a familiar legal system for international investors, with judgments in English.
• Free flow of capital: no exchange controls and accounts in Hong Kong dollars, U.S. dollars, renminbi and other currencies.
• Treaty network: about 50 comprehensive double tax agreements.

Step by step

1. Choose the name

The English name must end with Limited and must not be the same as an existing company name. A Chinese name is optional. Names suggesting a bank, insurer or government link need approval.

2. Appoint directors, shareholders and secretary

At least one director must be an individual aged 18 or over; corporate directors are allowed alongside them. Directors and shareholders can live anywhere. The company secretary must be an individual ordinarily resident in Hong Kong or a Hong Kong company, usually a licensed trust or company service provider, which can also provide the registered office.

3. File the incorporation

The incorporation form, the articles of association and the business registration application are filed together, usually online through the Companies Registry's e-Registry. The fee is HK$1,545 online (HK$1,720 on paper). Once approved, the company receives its certificate of incorporation and business registration certificate.

4. Business registration

From 1 April 2026, a one-year business registration certificate costs HK$2,200 plus a HK$150 levy. It must be renewed every year (or every three years if that option is chosen) and displayed at the place of business.

5. Significant controllers register

The company must keep a register of individuals or entities with significant control, generally more than 25% of shares or voting rights or the right to appoint most directors, at its registered office, and appoint a designated representative to provide it to the authorities on request. The register is not public.

6. Bank account

Hong Kong banks apply strict checks and usually want to meet the directors and see a genuine business link to Hong Kong or Asia: suppliers, clients, staff or an office. Preparing a business plan, client and supplier contracts and the source of funds before applying saves months. Virtual banks and international payment providers offer alternatives for simpler operations.

How Hong Kong taxes a company

Hong Kong taxes only profits that arise in or are derived from Hong Kong. Whether a profit is onshore or offshore depends on where the operations that produced it took place: where contracts were negotiated and concluded, where services were performed and where goods were bought and sold. A company that claims its profits are offshore must support the claim with evidence and can expect detailed questions from the Inland Revenue Department.

The two-tier rates are 8.25% on the first HK$2 million of assessable profits and 16.5% on the remainder; only one company in a group of connected entities can use the lower tier. There is no tax on capital gains, no VAT and no withholding on dividends or interest; certain royalties paid to non-residents are subject to withholding.

Since January 2023, the foreign-sourced income exemption (FSIE) regime taxes certain foreign dividends, interest, disposal gains and intellectual property income received in Hong Kong by companies that belong to a multinational group, unless they meet economic substance or participation requirements. It was extended in 2024 to gains on all types of assets. Our guide to territorial tax systems compares Hong Kong with other territorial countries.

Annual compliance

• Annual return to the Companies Registry within 42 days after each anniversary of incorporation (HK$105 if filed on time).
• Financial statements audited by a Hong Kong certified public accountant every year, including for companies claiming offshore profits.
• Profits tax return when issued by the Inland Revenue Department, usually about 18 months after incorporation for the first one and yearly afterwards.
• Employer's return and salary reporting if the company has staff.
• Renewal of the business registration certificate and updates to the significant controllers register.

Points of attention

• Banking is the main bottleneck: allow time and prepare a strong file.
• Offshore claims need evidence; a company with Hong Kong staff, office or contracts concluded in Hong Kong will usually be taxed there.
• The owner's country may still tax the profits under controlled foreign company rules. Our guide to tax residency explains why.
• Some international counterparties assess Hong Kong's political and sanctions environment closely since 2020; check how your banks and clients view the jurisdiction.

Bottom line

Hong Kong remains one of the simplest places in Asia to run an international company: fast online incorporation, full foreign ownership, low territorial taxation and direct access to China. The trade-offs are demanding banks, mandatory audits and rules that require real substance for foreign income. Our comparison with Singapore and the best countries to open an offshore company shows where Hong Kong fits.

Our Private Advisory Session assesses whether Hong Kong suits your business, coordinates the incorporation and the bank account, and aligns the structure with your tax residence.

Sources

• Hong Kong Companies Registry: Incorporation of local companies
• Inland Revenue Department: Business registration fees
• Inland Revenue Department: Two-tiered profits tax rates
• Inland Revenue Department: Foreign-sourced income exemption
• Hong Kong Companies Registry: Significant controllers register