Hong Kong Company formation and Registration

Hong Kong Company Formation and Registration 2025 for Foreign Investors



Hong Kong remains a leading global business hub with a simple and efficient company formation process. Below are the key facts regarding company formation and registration for foreign investors in 2025.

1. Types of Business Entities

  • Foreign investors can establish different types of business entities in Hong Kong, including:
    • Private Limited Company (Ltd) – The most common form, offering limited liability to shareholders.
    • Sole Proprietorship – A business owned by a single individual, with unlimited liability.
    • Partnership – A business structure with two or more partners, either general or limited liability.
    • Branch Office – A foreign company's extension operating in Hong Kong.
    • Representative Office – Used for market research and promotion; not allowed to conduct business transactions.


2. Company Registration Process

  • Incorporation Authority
    • Companies in Hong Kong are registered with the Companies Registry under the Companies Ordinance (Cap. 622).
    • Businesses must also comply with tax regulations under the Inland Revenue Department (IRD).


Registration Steps

  • 1. Choose a Company Name
    • The name must be unique and can be in English, Chinese, or both.
    • Certain restricted words require approval.
  • 2. Prepare Company Documents
    • Articles of Association outlining company regulations.
    • Details of directors, shareholders, company secretary, and registered office.
  • 3. Appoint Key Personnel
    • At least one director (can be a foreign national; no residency requirement).
    • At least one shareholder (individual or corporate entity).
    • Company Secretary (must be a Hong Kong resident or a Hong Kong-registered firm).
    • Registered Office Address in Hong Kong is required.
  • 4. Submit Application to the Companies Registry
    • Standard processing time: 1-2 working days for online applications.
  • 5. Receive Certificate of Incorporation and Business Registration Certificate
    • The Companies Registry issues a Certificate of Incorporation.
    • The Business Registration Certificate is issued by the Inland Revenue Department.


3. Capital and Shareholding Structure

  • Minimum Share Capital: No statutory minimum; standard is HKD 1.
  • 100% Foreign Ownership is allowed.
  • Shares can be issued in multiple classes with different rights.


4. Taxation and Compliance

  • Corporate Tax:
    • 8.25% on the first HKD 2 million of assessable profits.
    • 16.5% on profits above HKD 2 million.
    • No VAT, Capital Gains Tax, or Withholding Tax on dividends and interest.
    • Annual Requirements:
      • File Annual Return with the Companies Registry.
      • Submit Profits Tax Return and Audited Financial Statements to the Inland Revenue Department.


5. Business Licenses and Permits

  • Certain industries require additional licenses, such as financial services, import/export, and food & beverage businesses.
  • License applications are submitted to relevant Hong Kong authorities.


6. Economic Substance and Compliance

  • Substance Requirements apply for companies engaged in specific activities, such as financial and intellectual property businesses.
  • Companies must maintain proper accounting records and meet audit requirements.


7. Costs and Fees (2025)

  • Incorporation Fee: HKD 1,545 (electronic) or HKD 1,720 (paper application).
  • Business Registration Fee: Varies annually; subject to government policies.
  • Annual Return Fee: HKD 105 if filed on time.


      Hong Kong provides a straightforward company formation process with full foreign ownership, low taxation, and minimal capital requirements, making it attractive for foreign investors.