Hong Kong Companies
Jurisdiction Fact Sheet
Hong Kong is one of the world’s leading international business and financial centres. With a territorial tax system, common law framework, and unrestricted foreign ownership, it remains a preferred jurisdiction for trading, holding, consulting, and regional headquarters structures.
Key Advantages
1. Territorial Tax System
Hong Kong taxes only income sourced in Hong Kong.
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Profits tax: 8.25% on first HKD 2 million; 16.5% thereafter
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No VAT / GST
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No capital gains tax
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No withholding tax on dividends
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Dividends received generally not taxed
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Offshore income may be exempt (subject to FSIE rules and substance requirements)
3. Strong Banking & Financial Infrastructure
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Leading Asian banking hub
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Multi-currency accounts (USD, RMB, EUR, GBP, JPY, etc.)
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Stable currency (HKD pegged to USD)
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Free capital movement – no exchange controls
2. 100% Foreign Ownership
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No local shareholder required
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One individual can act as sole director and shareholder
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Corporate directors permitted (with restrictions)
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No minimum capital requirement
4. Legal System & Regulatory Stability
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English common law system
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Independent judiciary
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High contractual enforceability
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Transparent corporate registry
5. Director & Shareholder Privacy
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Directors’ residential addresses protected from public inspection
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Sensitive data accessible only via formal regulatory request
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Shareholder register maintained but not publicly searchable online
Incorporation Requirements
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Minimum 1 director (individual)
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Minimum 1 shareholder
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Company secretary (Hong Kong resident or licensed corporate provider)
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Registered office address in Hong Kong
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Annual audit required
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Business Registration Certificate required
Ongoing Compliance
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Annual Profits Tax Return
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Audited financial statements (mandatory)
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Annual Return filing
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Significant Controllers Register (SCR) maintenance
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Employer obligations if staff hired
Typical Use Cases
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International trading companies
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Procurement and sourcing entities
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Consulting and service businesses
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Regional holding companies
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IP holding structures (with substance planning)
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Investment vehicles
Timeline
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Incorporation: 5–7 working days (standard private company)
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Bank account: subject to compliance review
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Full operational readiness: 2–6 weeks depending on structure
Offshore Status –
Tax Exposure Criteria
A Hong Kong company may be considered locally taxable if:
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It has premises or staff in Hong Kong
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Management and control exercised in Hong Kong
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Contracts negotiated or concluded in Hong Kong
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Clients or suppliers located in Hong Kong
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Inventory stored in Hong Kong
Careful structuring and documentation are required to support offshore claims.
Re-Domiciliation to Hong Kong
Under the Companies (Amendment) (No. 2) Ordinance 2025, eligible foreign companies may re-domicile to Hong Kong, allowing continuity of legal identity while migrating the corporate seat.
Why Choose Hong Kong?
Hong Kong offers:
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Low and simple taxation
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Predictable regulatory environment
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Access to Mainland China and Asia
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Strong international reputation
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Efficient company administration
It remains one of the most practical jurisdictions for internationally active businesses requiring credibility, tax efficiency, and operational flexibility.