How to Start a Company in Hong Kong? Step-by-Step Guide to Take Your First Leap Toward Globalization

How to Set Up a Company in Hong Kong A Step-by-Step Guide to Your First Step into the Global Market

In today's globalized business environment, more and more entrepreneurs and business owners are looking to expand their operations into international markets. As one of Asia’s most influential international financial centers, Hong Kong offers an ideal gateway for businesses aiming to go global. With its strategic location, robust legal system, and open economic policies, Hong Kong has become the top choice for many companies seeking international exposure.

According to recent news reports, in the first quarter of 2025, the number of newly registered companies in Hong Kong increased by over 15% year-on-year, with a significant portion coming from entrepreneurs in mainland China and Southeast Asia. This trend reflects strong global investor confidence in Hong Kong’s business environment.

For entrepreneurs considering setting up a company in Hong Kong, how should they proceed? This article will guide you through the essential steps and key considerations.

1. Determine the Type and Nature of Your Business

Before registering your company, it is important to decide which type of entity best suits your needs. The most common forms include

Limited Company The most popular option, offering limited liability protection and separate legal identity.

Branch Office Suitable for businesses that already operate overseas and wish to establish a local presence in Hong Kong.

Representative Office Ideal for initial market exploration; however, it cannot engage in profit-making activities.

You should also clarify your core business activities to facilitate the subsequent application for a business license.

2. Choose and Check Your Company Name

Selecting a unique and meaningful name is the next step. You must check the availability of your preferred name via the Companies Registry CR website to ensure it hasn’t already been taken. It’s advisable to prepare two or three alternative names in case your first choice is unavailable.

Please note that if your company name includes characters other than Chinese or English, additional approval procedures may be required.

3. Submit Registration Documents

Once the name is confirmed, you can begin the formal registration process. The main steps are

1. File Incorporation Form NNC1/N1 This includes information such as the company name, business address, director and shareholder details, and authorized share capital.

2. Apply for a Business Registration Certificate BER Submitted to the Inland Revenue Department IRD, this confirms the legality of your business operations.

3. Prepare Articles of Association AoA You may use a standard template or customize them based on your company’s specific needs.

Today, all these procedures can be completed online through the One-stop Company Registration and Business Registration Service, significantly improving efficiency.

4. Open a Corporate Bank Account

After successfully registering your company, the next step is to open a corporate bank account in Hong Kong. Due to strict banking regulations, banks typically require comprehensive documentation, including

Certificate of Incorporation

Business Registration Certificate

Director’s identification documents

Proof of address

Business plan or relevant contracts

In recent years, major banks such as HSBC, Hang Seng, and Standard Chartered have introduced preferential services for startups. It is recommended to schedule an appointment in advance and prepare complete documents to increase the chance of approval.

5. Maintain Compliance and Fulfill Tax Obligations

To ensure smooth and lawful operation, pay attention to the following compliance requirements

Annual Filings Each year, submit an Annual Return to the Companies Registry and file a Profits Tax Return with the Inland Revenue Department.

Accounting and Audit Requirements Limited companies must conduct annual audits and retain accounting records for at least seven years.

Employment Regulations If hiring staff, familiarize yourself with labor laws, including minimum wage, rest days, and Mandatory Provident Fund MPF contributions.

According to the latest tax policy adjustments in early 2025, Hong Kong continues to maintain its low-tax advantage. The profits tax rate remains at 16.5%, with the first HKD 2 million of profits taxed at only 8.25%. This makes Hong Kong especially attractive for small and medium-sized enterprises.

6. Leverage Hong Kong as a Gateway to Global Markets

Once your company is set up, the next challenge is to utilize Hong Kong as a platform for international expansion. Consider the following strategies

Participate in International Exhibitions and Forums Events organized by the Hong Kong Trade Development Council HKTDC offer excellent opportunities to connect with potential clients and partners worldwide.

Apply for Government Funding Programs Initiatives like the Innovation and Technology Fund and the SME Export Marketing Fund can help reduce initial costs.

Utilize Free Trade Agreements Hong Kong has signed multiple free trade agreements with countries and regions, facilitating smoother import and export operations.

Take Advantage of Logistics Infrastructure With world-class logistics networks and efficient customs clearance systems, Hong Kong provides solid support for cross-border e-commerce activities.

Conclusion

Setting up a company in Hong Kong is not only a crucial step toward entering the global market but also an effective way to enhance your brand image and build customer trust. While the process involves several stages, following the correct procedures and seeking professional assistance-such as from accounting firms, law firms, or incorporation agents-can streamline the setup and ensure efficiency.

As the global economic landscape evolves, Hong Kong continues to stand out with its unique advantages. Seize the opportunity-start by registering a Hong Kong company and take your business to a broader stage.