Situated on China’s South East coast, Hong Kong is a Special Administrative Region (SAR) of the People’s Republic of China (PRC) following the handover from the British in 1997. While China has assumed sovereignty over Hong Kong the “one country, two systems” principle is fundamental in ensuring that the current free market political environment remains until 2047, following legislation that was agreed to before the handover.

Despite only being 1,104 square kilometers in size, Hong Kong has long established itself as one of the world’s major trading and financial centers, continuously ranked as one of the busiest ports in the world and second largest recipient of foreign direct investment in Asia (after the PRC).

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Why Register a Business in Hong Kong

Company Formation in Hong Kong benefits from Hong Kong's proximity to, and unique relationship with PRC, has made it the gateway to the Chinese market for more than 150 years. Hong Kong’s business influence across PRC is extensive and deep, accounting for nearly half of all inbound and outbound investment from the PRC, making the city its largest trading partner. Hong Kong is perfectly situated in Asia, as it is within a 4 hour flight from all regional key markets and five hours from half the world’s population.

Taxation in Hong Kong

The taxation system in Hong Kong is simple and transparent with a low personal and corporate tax rate. Corporate Taxation in Hong Kong is based on a territorial system, in that if the transactions are deemed ‘onshore’ in nature they are subject to a taxation of 16.5%, where as if the transactions are considered ‘offshore’ tax exemption is possible. Personal income tax for Hong Kong residents is 15%.

Banking in Hong Kong

Hong Kong has one of the highest concentrations of banking institutions in the world with 71 of the largest 100 banks registered in the city. Transaction processing is quick and efficient and Hong Kong has recently become one of the first cities outside of the PRC to be permitted to perform RMB clearing. The workforce in Hong Kong is highly skilled, most of which are trilingual speakers with exposure to international markets.  

Legal System in Hong Kong

Hong Kong’s legal system is straightforward, transparent and based on British common law. Hong Kong’s independent judiciary has had a long reputation for its fairness and was recently awarded the best judicial system in Asia. The Hong Kong legal system has a pivotal role when doing business in the PRC as arbitration proceeding conducted in Hong Kong with a PRC company is enforceable on either side of the border.

Company Requirements

  • Minimum of one Director (no restriction on residence, can be individual or corporate)
  • Minimum of one Shareholder (no restriction on residence, can be individual or corporate)
  • Company Secretary requirement (must be a resident of Hong Kong)
  • Minimum paid up capital HKD1
  • Corporate names can be in both English and Chinese and reservations are not permitted
  • Registered Office and address in Hong Kong
  • Required to provide annual return
  • Require to have the annual accounts audited
  • Shelf companies are available
  • Approximately five working days to incorporate a new company