Setting up a company in Hong Kong
Ready to talk?
A reputable, Asia-facing base with a gateway to Mainland China and a territorial tax system. We handle incorporation, the resident company secretary, audits and annual filings.
Flat fee, answers in 24 hours. We specialise in non-US / EU jurisdictions.
Why founders incorporate in Hong Kong
Hong Kong is a well-developed financial centre under English common law — not a blacklisted offshore jurisdiction. Here is what matters when you structure here.
Private company limited by shares
The standard and most suitable vehicle for foreign founders. One shareholder and one director (at least one a natural person) are enough; shareholders and directors can be of any nationality or residence.
Territorial profits tax
Only Hong Kong-sourced profits are taxed. The two-tier rate for companies is 8.25% on the first HKD 2m and 16.5% above. Foreign-sourced profits can be exempt — subject to the refined foreign-sourced income exemption (FSIE) rules for certain passive income.
No VAT, no capital gains tax
Hong Kong has no VAT or sales tax and generally no capital gains tax. There is no withholding tax on dividends or interest; royalties paid to non-residents are taxed at an effective 4.95%. No CFC rules and no currency controls.
Annual audit and filings required
Companies must keep a registered office and a Hong Kong-resident company secretary, file an annual return, and audit and file accounts with the Inland Revenue Department every year. Dormant companies can file a 'zero' return.
Public directors, private controllers
Directors and members appear on the public register. The register of significant controllers (anyone holding over 25%) must be kept but is not open to the public.
Asia & China-facing business
Best for trading, IP and holding companies serving the Asia-Pacific region, and for founders who want a prestigious, treaty-connected base with a clear path into Mainland China.
How Point Legal helps with Hong Kong structures
Incorporation is only the start — Hong Kong's value comes from getting the source-of-profits position and ongoing filings right. We handle both on a flat monthly fee.
Incorporation & company secretary
End-to-end incorporation, the mandatory Hong Kong-resident company secretary, registered office, and your statutory registers.
Offshore-profits claim support
Structuring and documentation to support an offshore-profits (territorial) claim, plus analysis of the FSIE rules for passive income.
Audit & annual return coordination
We coordinate the annual audit, profits-tax return and annual return, and keep your significant-controllers register current.
China & Asia structuring
Holding and operating structures that use Hong Kong as a gateway to Mainland China and the wider Asia-Pacific region.
Banking coordination
Support preparing for account opening with Hong Kong banks, including the beneficial-owner and substance documentation they expect.
Ongoing legal & finance partner
Always-on access to legal and CFO-led tax support across your entities, with quick questions and reviews included in the subscription.
Frequently asked questions
Is Hong Kong an offshore jurisdiction?
Not in the blacklisted sense. Hong Kong is a recognised international financial centre under English common law and is not on the low/zero-tax blacklists of most countries. It can function like an offshore base when a company operates outside Hong Kong and earns no Hong Kong-sourced profits, because of its territorial tax system.
How is Hong Kong profits tax calculated?
On a territorial basis — only profits arising in or derived from Hong Kong are taxed. For companies, the two-tier rate is 8.25% on the first HKD 2 million of profits and 16.5% on the remainder.
Can foreign-sourced profits be tax-exempt?
Yes — profits sourced outside Hong Kong can be exempt from profits tax, but the company must apply and may need to evidence that the profit-generating activity took place outside Hong Kong. Certain passive income is also subject to the refined foreign-sourced income exemption (FSIE) regime, which can require economic substance.
What ongoing filings does a Hong Kong company need?
An annual return to the Companies Registry, audited financial accounts, and a profits-tax return filed with the Inland Revenue Department each year. Active companies must be audited; dormant companies may file a 'zero' return.
Do I need a local director or secretary?
You must appoint a company secretary who is resident in Hong Kong (an individual or a body corporate) and maintain a registered office in Hong Kong. Directors can be of any nationality, but at least one director must be a natural person.
Book a discovery call about your structure bottlenecks
Tell us your current setup and where it's getting stuck — incorporation, tax, substance, or banking. You'll get a real lawyer's read within 24 hours, no billing and no commitment.
By uploading the document, you agree to our ToS, Privacy and NDA policies.