🇭🇰 Hong Kong
Hong Kong is renowned for its low tax rates and territorial basis of taxation, with the common structure being a private limited company. The profits tax operates on a two-tier system (8.25% on the first HKD 2 million, 16.5% on the remainder). Under certain conditions, offshore income may not be taxed, though recent years have seen tightening of the Foreign Source Income Exemption (FSIE) rules. A statutory secretary is required, and audits are mandatory. The following is a neutral compilation of publicly available information; please refer to the latest regulations from the Hong Kong Companies Registry/Taxation Department.
Hong Kong Key conditions at a glance
| Common Company Types | Private Limited Company |
|---|---|
| Corporate income tax | Two-tier profits tax: first HK$2 million at 8.25%, the remainder at 16.5% |
| Estimated establishment costs | Approximately several thousand HKD (company registry + business registration fees) |
| Annual maintenance | Annual reporting, business registration renewal, tax filing, mandatory audits. |
| Substance/Reporting Requirements | A statutory secretary and registered address are required; exemptions on foreign income under FSIE rules are conditional. |
| Who is it suitable for? | Targeting Greater China and Asian trade, emphasizing low taxes and open economies. |
Hong Kong Key considerations
- Under the principle of territoriality, foreign income may not be taxed, but FSIE rules have tightened and must meet certain conditions.
- Mandatory audits are an annual obligation, and accounting and auditing costs must be included.
- Due diligence for bank account openings is becoming stricter; it is prudent to prepare substantial business documentation.
Hong Kong Frequently Asked Questions
How much does it cost to set up a company in Hong Kong?
The costs of a Hong Kong limited company primarily include registration fees and Business Registration Certificate fees payable to the Companies Registry and the IRD, as well as service fees for company secretary and registered address. Amounts vary by service provider and chosen package; it is recommended to refer to prevailing official fees and quotations.
What taxes does a Hong Kong company need to pay?
Hong Kong adopts a territorial source principle for taxation. Profits tax is currently levied at approximately 8.25% on the first HKD 2 million of assessable profits for corporations and approximately 16.5% thereafter. Profits derived from outside Hong Kong may not be taxable. Actual tax treatment is determined by the IRD; please refer to prevailing tax rates and regulations.
Does a Hong Kong company require a local director or physical office?
A Hong Kong company must appoint a locally resident company secretary (corporate or individual) and have a registered address in Hong Kong, but directors may be non-residents. Whether a physical office is needed depends on operational requirements; relevant rules are subject to the Hong Kong Companies Registry.
What annual maintenance and filings are required for a Hong Kong company?
A Hong Kong company must file an annual return with the Companies Registry, renew its Business Registration Certificate, and conduct accounting, auditing, and tax filing with the Inland Revenue Department (IRD). The company must also maintain a Significant Controllers Register. Late filings may incur penalties; details are subject to official regulations.
How can I verify whether the company incorporation, tax, and compliance regulations for this jurisdiction are up to date?
Tax systems, annual fees, economic substance, and UBO (Ultimate Beneficial Owner) rules in each jurisdiction are frequently amended. Recommendations: ① Check official company registry or tax authority announcements of the jurisdiction (official source links are provided at the bottom of this page); ② Verify the data date indicated on this page; ③ Understand post-incorporation annual filing, accounting, audit, and economic substance obligations—do not focus solely on incorporation fees; ④ Stay alert to agent claims that exaggerate tax savings or suggest no filing or compliance obligations after incorporation, and consult qualified tax/legal professionals for major decisions. This site provides a neutral compilation of public information; always refer to the latest official announcements.
Hong KongWhere to search for the official company registration of , and is it public?
| Official registry | Company Registry ICRIS / Online Search Centre |
|---|---|
| Can the public search the register? | 🔎 Online public search (paid) |
| Notes | Paid online search, including directors and shareholders; free company name search also available. |
| Official search | Go to official registry search ↗ |
The above is a compilation of public information from official company registration authorities; public search rules and beneficial ownership disclosures are subject to change, so please refer to the latest official regulations. See the comparison table of registration transparency across jurisdictions →
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Official sources：Hong Kong Companies Registry / Taxation Department · Data date：2026-06-14。This page serves as a neutral compilation of publicly available information for reference only, notTax / LegalRecommendations are based on the latest official announcements.