How Mainland Residents Can Smoothly Set Up a Company in Hong Kong A Detailed Guide to the Entire Process and Key Points to Note!

How Can Mainland Residents Successfully Establish a Company in Hong Kong? A Comprehensive Guide from Procedures to Key Considerations

In recent years, with the continuous development of the Guangdong-Hong Kong-Macao Greater Bay Area, an increasing number of mainland entrepreneurs have turned their attention to Hong Kong - a global financial hub. As a vital bridge connecting the mainland and international markets, Hong Kong attracts numerous investors due to its low tax rates, well-established legal system, and highly open business environment.

This is particularly appealing for small and medium-sized enterprise SME owners aiming to expand overseas. According to 2025 data, despite global economic uncertainties, the Companies Registry in Hong Kong reported that over 135,000 new local companies were incorporated throughout the year, with significant investment coming from mainland China. This reflects the continued confidence mainland residents place in the Hong Kong market.

So, how can mainland residents successfully set up a company in Hong Kong? What are the steps involved, and what key points should be noted? This article will provide a detailed explanation.

I. Basic Types of Company Registration in Hong Kong

For most mainland entrepreneurs, the most common choice is to register a Private Limited Company, which is the standard structure suitable for SMEs. Alternatives such as setting up a branch office or partnership also exist; however, private limited companies remain the top option due to advantages like separate legal entity status and limited liability protection.

II. The Basic Process of Registering a Hong Kong Company

1. Choose a Unique Company Name

First, ensure that the proposed company name is not already taken. You can conduct a preliminary search via the Companies Registry website. It’s advisable to prepare 2-3 alternative names in case of duplication.

2. Prepare the Company's Articles of Association and Shareholder Information

The articles outline the company’s objectives, shareholder rights, and directors’ responsibilities. At least one shareholder and director must be identified, along with supporting documents such as identity cards, passports, and proof of address. Note that Hong Kong allows single-member companies, where the sole individual serves as both shareholder and director.

3. Appoint a Company Secretary and Registered Office Address

Under Hong Kong law, every company must appoint a company secretary and maintain a registered office address. The secretary can be an individual or a professional firm, but they must be either a permanent resident or a foreigner holding a valid visa. Many mainland entrepreneurs opt to use agency services for this requirement.

4. Submit the Registration Application

Once all documentation is ready, submit the registration forms and relevant documents to the Companies Registry - either directly or through a professional agent. Most procedures can now be completed online efficiently.

5. Obtain a Business Registration Certificate

After the company is officially registered, apply to the Inland Revenue Department for a Business Registration Certificate, which is essential for opening a bank account, filing taxes, and other administrative tasks.

III. Opening a Bank Account and Ongoing Operations

After successful company registration, the next step is to open a corporate bank account. Due to increasingly stringent anti-money laundering AML regulations, banks conduct thorough due diligence during the application process.

It is recommended to prepare the following documents in advance

Certificate of Incorporation

Business Registration Certificate

Articles of Association

Identity documents of directors and shareholders

Proof of address

Business plan

Some banks may require applicants to attend an in-person interview in Hong Kong or participate in a video verification session. Plan travel arrangements accordingly before initiating the registration process.

IV. Taxation and Compliance Management

Hong Kong adopts a territorial taxation principle - only income sourced from within Hong Kong is subject to tax. The profits tax rate is 16.5%, with the first HKD 2 million taxed at 8.25%, making Hong Kong an attractive jurisdiction for tax optimization.

However, companies must annually file an Annual Return and submit audited financial statements. Engaging a professional accounting firm can help avoid penalties or legal issues resulting from non-compliance.

V. Commonly Overlooked Considerations

1. Choose a Reputable Registration Agent

With many agencies offering registration services, quality varies significantly. Opt for a service provider with a solid reputation and professional credentials to ensure a smooth process.

2. Understand Industry-Specific Regulations

Certain sectors, such as finance, healthcare, and education, require specific licenses. Consult professionals before registration to prevent operational obstacles later.

3. Maintain Good Corporate Standing

Fulfill tax obligations promptly and update company records regularly. Doing so helps maintain a good compliance history, facilitating future financing or business expansion.

4. Monitor Policy Changes

Although Hong Kong maintains a stable business environment, changes in policies related to taxation, immigration, or investment thresholds may occur. Stay updated through official announcements or seek advice from professionals.

Conclusion

While registering a company in Hong Kong involves multiple steps, with proper preparation and planning, mainland residents can complete the process smoothly within a short time frame. Leveraging Hong Kong’s unique geographical advantage and institutional convenience, many businesses find it beneficial when expanding into international markets.

For aspiring entrepreneurs, early planning and utilizing professional support are crucial steps toward achieving global business success.