Must-Read Guide to Starting a Company in Hong Kong Essential Strategies for Mainland Residents

The Secret to Setting up a Company in Hong Kong A Must-Know Guide for Mainland Investors

In recent years, with the acceleration of the internationalization of mainland enterprises, an increasing number of entrepreneurs and business owners from the mainland are choosing to expand their businesses to Hong Kong. As an international financial center and a bridge between the mainland and the world, Hong Kong has become a preferred location for company registration due to its unique legal system, low tax rates, free economic environment, and convenient business climate. This article provides a comprehensive and practical guide for mainland individuals on how to set up a company in Hong Kong, helping you understand the key steps and important considerations.

First, determining the type of company is crucial. According to the Companies Ordinance, Hong Kong companies are mainly divided into Limited Companies and Unlimited Companies. Among them, Limited Companies are the most common type and are the preferred choice for most mainland investors. These companies have independent legal status, and shareholders are only liable up to the amount they have invested, making the risk relatively low. There are also Private Companies and Public Companies. Private Companies are suitable for small and medium-sized enterprises, while Public Companies are for large enterprises or those with listing requirements.

According to the Hong Kong Business Development Report released in June 2025, as of the first quarter of 2025, the number of new companies registered in Hong Kong increased by 8.3% year-on-year, with over 60% being Limited Companies established by mainland investors. This data indicates that mainland enterprises continue to show strong confidence in the Hong Kong market.

Second, choosing an appropriate company name is an important part of the process. According to the regulations of the Companies Registry, company names must meet certain standards. They cannot be the same as existing registered names, nor can they contain sensitive words or violate public order. It is recommended to check the availability of the name through the official website of the Companies Registry before submitting the application to ensure it is available.

Additionally, mainland investors should be aware that although Hong Kong implements the one country, two systems principle, they still need to comply with relevant laws and regulations in practice. For example, a company must have at least one director, and directors can be of any nationality. However, if the company operates in specific industries such as finance, insurance, or real estate, additional licenses must be applied for and regulatory requirements must be met.

Moreover, the establishment of capital should be handled with care. Although Hong Kong law sets the minimum capital at 1 Hong Kong dollar, in practice, most companies set a reasonable capital based on their business scale. For example, some e-commerce companies choose 50,000 Hong Kong dollars as their capital to better demonstrate the company's strength. Capital does not need to be fully paid up at once and can be paid in installments, which is one of the factors that attract investors.

At the same time, Hong Kong's tax policy is also a major advantage. According to the Inland Revenue Department, the corporate profit tax rate in Hong Kong is 16.5%, much lower than the 25% in the mainland. Qualified companies can also enjoy various tax benefits, such as exemptions on profits tax for the first year and investment exemptions. This makes Hong Kong an ideal choice for many mainland enterprises to establish cross-border operations.

However, mainland investors should also be aware of potential risks during the company setup process. For example, some mainland companies failed to comply with Hong Kong laws, leading to compliance issues during operations. In April 2025, a mainland technology company's subsidiary in Hong Kong was forcibly dissolved because it failed to submit annual filing documents as required. This case reminds investors to pay attention to daily company management and ensure all procedures are complete.

The bank account opening process in Hong Kong is also quite strict. Although mainland investors can open an account at a local bank with the company registration certificate and director's identity proof, different banks have different requirements for documents. Some banks may even require more detailed financial background information. It is recommended that investors consult professional advisors in advance, choose a suitable bank, and prepare all necessary documents.

Finally, it is advisable for mainland investors to seek professional legal and accounting advice before setting up a company. Due to the significant differences between Hong Kong's legal system and that of the mainland, professionals can help investors avoid potential risks, optimize the company structure, and improve operational efficiency. According to a survey conducted in July 2025, about 78% of mainland enterprises hired local lawyers or accountants when establishing a company in Hong Kong, significantly reducing compliance costs.

In summary, as a globally renowned business center, Hong Kong's unique institutional advantages and favorable business environment have attracted widespread attention from mainland enterprises. By making proper plans and operating in accordance with the law, mainland investors can certainly establish a solid business foundation in Hong Kong and achieve broader development opportunities. We hope this article provides valuable reference for mainland individuals who are considering setting up a company in Hong Kong, helping you smoothly embark on your international journey.