Setting Up a Company in Hong Kong: Key Steps

Published on October 5, 2025 and written by Cyril Jarnias

Hong Kong, an international financial hub renowned for its business-friendly environment, attracts numerous entrepreneurs looking to establish their companies there. With its tax advantages, political and economic stability, and strategic position in Asia, Hong Kong provides an ideal framework for the development of international businesses. However, setting up a company in this special administrative region of China requires following a precise administrative process and meeting certain legal requirements. In this article, we will detail the main steps and necessary documents for creating your company in Hong Kong, based on the chosen legal structure.

Hong Kong’s Advantages for Your Business

Before diving into the administrative procedures, it’s important to understand why Hong Kong is a popular destination for business creation.

Favorable tax regime: Hong Kong practices a territorial taxation system, meaning only income generated in Hong Kong is taxable. The corporate tax rate is 16.5% for profits exceeding 2 million Hong Kong dollars (HKD), and 8.25% for the first 2 million HKD. Additionally, there is no tax on dividends, capital gains, or income generated abroad.

An open and dynamic economy: Regularly ranked among the world’s freest economies, Hong Kong offers a business-friendly environment with few entry barriers for foreign investors. The city also benefits from modern infrastructure and a legal system based on British common law, providing stability and predictability for businesses.

A strategic position in Asia: Located at the heart of the Asia-Pacific region, Hong Kong is an ideal gateway to the Chinese market and other Asian countries. The city has a major international port and a well-connected airport, facilitating trade exchanges.

Choosing the Right Legal Structure: The Options Available to You

Before starting the administrative procedures, it’s crucial to choose the legal structure best suited to your project. In Hong Kong, several options are available to entrepreneurs:

The limited liability company (Limited Company): This is the most common form for foreign companies establishing in Hong Kong. It offers limited liability to shareholders and can be 100% owned by foreigners. This structure is ideal for businesses aiming for long-term presence and increased credibility in the local and international markets.

The branch office (Branch Office): This is a direct extension of a foreign company. It does not have a separate legal personality from the parent company and operates under its name. This option is often chosen by large companies wanting to establish a presence in Hong Kong while maintaining direct control from headquarters.

The representative office (Representative Office): This structure cannot conduct direct commercial activities in Hong Kong. It is limited to liaison, market research, or promotional activities on behalf of the foreign parent company. It’s an interesting option for testing the market before further commitment.

The sole proprietorship (Sole Proprietorship): This simple structure is suitable for individual entrepreneurs. However, it does not separate personal and business assets, which can represent a significant risk.

The choice of structure will depend on your business objectives, budget, and long-term strategy. It is recommended to consult a business setup expert in Hong Kong to guide you in this crucial decision.

Key Steps to Create Your Company in Hong Kong

Once your legal structure is chosen, here are the main steps to follow to create your company in Hong Kong:

1. Company Name Verification and Reservation

The first step is to choose and verify the availability of your company name. This name must be unique and not too similar to existing company names. You can conduct a preliminary search on the Hong Kong Companies Registry website. Once the name is chosen, it is recommended to reserve it to prevent someone else from taking it while you prepare the other documents.

2. Preparation and Submission of Incorporation Documents

The following documents must be prepared and submitted to the Companies Registry:

• Form NNC1 (for companies limited by shares) or NNC1G (for companies limited by guarantee)
• Company Articles of Association
• Copies of identification documents for directors, shareholders, and company secretary
• Registered office address in Hong Kong

3. Obtaining the Certificate of Incorporation and Business Registration Certificate

Once the documents are approved, the Companies Registry will issue a Certificate of Incorporation. Simultaneously, you will receive a Business Registration Certificate from the Inland Revenue Department, necessary to operate legally in Hong Kong.

4. Opening a Bank Account

Opening a bank account in Hong Kong can be a rigorous process, especially for foreign companies. Banks typically require the physical presence of directors and shareholders, as well as detailed documents about the company’s activity and ownership structure.

5. Registration with Relevant Authorities

Depending on your activity, you may need to register with other authorities. For example, if you plan to hire staff, you will need to register with the Mandatory Provident Fund Schemes Authority.

Required Documents: The Perfect File for Your Limited Liability Company

To create a limited liability company in Hong Kong, which is the most common legal form, you will need to prepare a complete file including the following documents:

1. Incorporation Form (NNC1): This official document must be filled out with the company’s basic information, including the proposed name, registered office address, and details about directors and shareholders.

2. Articles of Association: This document defines the company’s internal operating rules. It can be the standard articles provided by the Companies Registry or customized articles drafted by a lawyer.

3. Copies of Identification Documents: Certified true copies of passports or identity cards of all directors, shareholders, and the company secretary are required.

4. Proof of Address: A recent proof of residence (less than 3 months old) for each director and shareholder.

5. Company Secretary Consent Letter: If you appoint a professional company secretary, a consent letter from them is necessary.

6. Shareholding Structure: A diagram detailing the company’s ownership structure, especially if corporate entities are involved.

7. Business Plan: Although not mandatory for incorporation, a detailed business plan is often required by banks when opening an account.

8. Declaration of Compliance: A signed declaration by a founder or licensed professional confirming that all legal requirements have been met.

It is important to note that all these documents must be in English or Chinese, or accompanied by a certified translation if written in another language.

Specifics for Other Legal Structures

If you choose a structure different from the limited liability company, here are the main differences in terms of required documents:

For a Branch Office

• Form NN1 for registration of a non-Hong Kong company
• Certified copy of the parent company’s incorporation documents
• Copy of the parent company’s latest audited financial statements
• Appointment of an authorized representative residing in Hong Kong

For a Representative Office

• Form IRD 62 for registration with the Business Registration Office
• Letter from the parent company confirming the establishment of the representative office
• Copy of the parent company’s incorporation documents

For a Sole Proprietorship

• Form 1(a) for registration with the Business Registration Office
• Copy of the owner’s identification document
• Proof of the owner’s address

It is important to note that these alternative structures have different implications in terms of liability, taxation, and reporting. For example, a branch will be subject to the same financial reporting obligations as the parent company, while a representative office will have minimal accounting requirements.

Costs and Timelines: Plan Your Budget and Schedule

Setting up a company in Hong Kong involves various costs and timelines that are important to consider in your planning:

• Companies Registry registration fee: approximately 1,720 HKD (220 USD)
• Business Registration fee: approximately 2,000 HKD (255 USD) for the first year
• Service fees if using a provider: variable, generally between 5,000 and 15,000 HKD (640 to 1,920 USD)

• Annual renewal of Business Registration Certificate: approximately 2,000 HKD (255 USD)
• Company secretarial fees: starting from 5,000 HKD (640 USD) per year
• Audit and accounting fees: variable, generally starting from 10,000 HKD (1,280 USD) per year

• Company incorporation: 1 to 2 business days if all documents are in order
• Obtaining Business Registration Certificate: simultaneously with incorporation
• Opening a bank account: 2 to 8 weeks, depending on the bank and complexity of your file

It is important to note that these costs and timelines are indicative and may vary depending on your specific situation and chosen providers. For example, opening a bank account may take longer for foreign companies or those operating in sectors considered high-risk.

Expert Tips for Successful Company Creation in Hong Kong

To maximize your chances of success when creating your company in Hong Kong, here are some expert tips to keep in mind:

1. Prepare a solid business plan: Even though it’s not a legal requirement for incorporation, a detailed business plan will be crucial for opening your bank account and attracting potential investors.

2. Choose your company secretary wisely: In Hong Kong, every company must have a locally residing company secretary. Opt for an experienced professional who can guide you through legal and administrative obligations.

3. Anticipate economic substance requirements: Although Hong Kong does not have specific laws on economic substance, it is important to demonstrate real presence and substantial activity to avoid any suspicion of tax evasion.

4. Be prepared for the bank due diligence process: Banks in Hong Kong are known for their strict procedures. Prepare a complete file including proof of fund sources and a detailed business plan.

5. Consider long-term tax implications: Although Hong Kong offers a favorable tax regime, it is important to understand how this aligns with the taxation in your home country to avoid double taxation.

6. Stay informed about regulatory changes: The regulatory framework in Hong Kong is evolving rapidly, especially regarding compliance and anti-money laundering. Ensure you stay updated or work with professionals who are.

7. Networking and local integration: Hong Kong is a city where relationships matter. Participate in networking events and consider joining chambers of commerce to facilitate your integration into the local ecosystem.

Conclusion: Your Springboard to Success in Asia

Creating a company in Hong Kong represents a unique opportunity for entrepreneurs looking to establish themselves in Asia. With its favorable tax regime, strategic position, and business-friendly environment, Hong Kong offers fertile ground for your business development. Although the administrative process may seem complex at first, careful preparation and adherence to key steps will allow you to navigate the incorporation procedures effectively.

Remember that every business is unique, and the specifics of your project may require adjustments in the creation process. That’s why it’s often wise to surround yourself with local experts who can guide you through the nuances of the Hong Kong system and help you avoid common pitfalls.

By following this guide and staying attentive to regulatory developments, you will be well positioned to launch your business in Hong Kong and take advantage of the many opportunities offered by this gateway to Asia.