How to Register a Company and Start Business Operations in Hong Kong

This comprehensive guide explains the process for foreigners to register a company and legally conduct business operations in Hong Kong, including import/export considerations.

Table of contents

How to Register a Company in Hong Kong

Registering a company in Hong Kong is straightforward for both locals and foreigners. Here are the key steps:

1. Choose your business structure:

   • Private Limited Company (most common)
   • Branch Office
   • Representative Office
   • Partnership

2. Select a company name:

   • Must be unique and approved by the Companies Registry
   • Can be in English, Chinese, or both

3. Prepare required documents:

   • Articles of Association
   • Identification documents for directors/shareholders
   • Proof of registered address in Hong Kong

4. Submit application to the Companies Registry:

   • Online or in-person submission
   • Processing takes about 1 week
   • Fees range from HKD 1,720 to HKD 3,450

5. Obtain business licenses if required for your industry

Foreigners Operating Businesses Legally in Hong Kong

Hong Kong welcomes foreign entrepreneurs with these key requirements:

• Business Registration Certificate (must be renewed annually)
• Work Visa for foreign owners/directors (General Employment Policy visa)
• Tax Compliance:
  • Profits tax rate of 8.25% on first HKD 2 million
  • Standard rate of 16.5% above HKD 2 million
• Annual Returns filed with Companies Registry
• Audited Financial Statements required for limited companies

Key advantages for foreign business owners:

• No restrictions on foreign ownership
• Simple tax system with low rates
• No capital gains tax or VAT
• Free remittance of profits

Import/Export Business for Foreigners

Hong Kong’s free port status makes it ideal for international trade:

1. Registration Requirements:

   • Obtain an Importer/Exporter Registration from Customs
   • Register for Hong Kong Harmonized System (HKHS) codes

2. Customs Procedures:

   • Minimal documentation required
   • No tariffs on imports/exports (except for a few items)
   • Fast customs clearance

3. Key Considerations:

   • Choose between air freight or sea freight
   • Understand Incoterms for international shipments
   • Consider using Hong Kong’s free trade zones

Conclusion

Hong Kong offers one of the most business-friendly environments in Asia for foreign entrepreneurs. With simple company registration procedures, low taxes, and excellent infrastructure, it’s an ideal location to establish and grow your business in the region. By following the proper legal procedures and understanding the requirements for your specific business activities, you can successfully operate in Hong Kong’s dynamic market.