Want to Start a Company in Hong Kong? 5 Must-Know Tips

How to Register a Company in Hong Kong Five Key Considerations

In recent years, as global economic integration has accelerated, an increasing number of entrepreneurs and businesses have chosen to expand their operations to Hong Kong, a world-renowned international financial hub. Serving as a bridge between mainland China and the global market, Hong Kong continues to attract investment from around the world due to its free economy, low tax regime, and efficient business environment.

According to data released by the Companies Registry in 2025, despite global economic uncertainties, the number of newly registered local companies in Hong Kong continued to grow steadily, with more than 120,000 new companies established throughout the year-demonstrating strong market vitality and investor confidence.

For entrepreneurs planning to register a company in Hong Kong, understanding the registration process and relevant requirements is crucial. Below are five key considerations you must understand before setting up your business in Hong Kong.

1. Determine the Company Type and Structure

The first step in registering a company in Hong Kong is to choose the appropriate legal structure. The most common form is a Private Limited Company, which offers benefits such as separate legal identity, limited liability for shareholders, and ease of raising capital or going public.

Alternatively, you may consider establishing a non-local company i.e., a branch of a foreign company or a partnership. However, most entrepreneurs prefer a private limited company. It’s important to note that different structures come with varying implications for taxation, legal liability, and management.

For example, private limited companies must comply with the Companies Ordinance, including submitting annual returns and audited financial statements regularly. In contrast, partnerships involve unlimited liability shared among partners. Before registration, carefully evaluate your business needs and risk tolerance to select the most suitable structure.

2. Meet Registration Requirements and Eligibility Criteria

While the company registration process in Hong Kong is relatively straightforward, certain basic requirements must be met.

Firstly, every company must appoint at least one director who is at least 18 years old and has no bankruptcy or criminal record. As of 2025, a new corporate law reform mandates that all companies must have at least one natural person director-meaning not all directors can be corporate entities. This reform aims to enhance corporate governance transparency.

Additionally, a company secretary must be appointed, typically a Hong Kong resident or a licensed secretarial firm. A valid Hong Kong registered office address is also required, which should be capable of receiving official and legal documents. While virtual office addresses are acceptable, they must support actual mail delivery.

3. Understand the Tax System and Preferential Policies

Hong Kong operates on a territorial basis of taxation, meaning only profits sourced within Hong Kong are subject to tax-a major attraction for multinational enterprises.

Currently, the standard corporate profit tax rate is 16.5%, but for the first HKD 2 million of profits, the effective rate is reduced to 8.25%, offering significant relief for startups.

Moreover, Hong Kong has signed Double Taxation Avoidance Agreements DTAs with over 40 countries and regions, helping reduce cross-border tax burdens. For instance, in January 2025, Hong Kong and Indonesia formally signed a tax treaty, enhancing bilateral cooperation and convenience for businesses-an added advantage for companies targeting Southeast Asian markets.

However, since 2025, the Inland Revenue Department has intensified scrutiny of offshore income, requiring more documentation to verify the source of profits. It is essential to maintain complete financial records and business documents during tax filing to avoid potential risks.

4. Familiarize Yourself with the Registration Process and Required Documents

Registering a company in Hong Kong is generally efficient, usually completed within 3 to 7 working days. The main steps include

Conducting a company name search

Submitting incorporation documents

Receiving the Business Registration Certificate and Certificate of Incorporation

Opening a corporate bank account

Required documents typically include

Proposed company name

Business scope

Shareholder and director details

Registered address

Articles of Association

The company name must be verified through the Companies Registry’s online system to ensure it is unique and non-infringing. The Articles of Association serve as the foundational document for corporate governance and should be customized according to the company’s specific needs.

Thanks to digital advancements, Hong Kong now offers a one-stop company registration and business licensing service via the CR e-Services Portal, significantly streamlining the process.

5. Comply with Ongoing Compliance and Annual Filing Obligations

Successfully registering a company is just the beginning. Maintaining legal compliance is equally critical.

Under Hong Kong law, all registered companies must undergo annual audits and filings, including submitting the Annual Return to the Companies Registry and paying the associated fee. Additionally, companies must file a Profits Tax Return each year along with audited financial statements.

Many businesses unfamiliar with local regulations may overlook these obligations, potentially leading to penalties or even deregistration. It is advisable to engage professional services-such as a corporate secretary firm or accounting firm-to assist with annual compliance and tax reporting.

Furthermore, the 2025 Corporate Governance Reform introduced by the Companies Registry requires all companies to maintain a PSC Register People with Significant Control, recording information about ultimate beneficial owners. This reform strengthens regulatory oversight and underscores the importance of robust compliance practices.

Conclusion

As one of the world's most competitive business environments, Hong Kong offers a vast platform for entrepreneurs and businesses. However, while enjoying its conveniences, company registration involves various legal, tax, and compliance challenges.

Understanding and mastering the above five key points will not only help you smoothly navigate the registration process but also lay a solid foundation for long-term, sustainable growth. Whether you're starting your first business or expanding into international markets, thorough preparation and professional support are essential for success.