Cost of Setting Up a Company in Hong Kong

Published on October 5, 2025 and written by Cyril Jarnias

Hong Kong remains one of the most sought-after destinations for establishing a business presence in Asia. Its business-friendly environment, advantageous tax system, and strategic position make it a preferred choice for many international entrepreneurs. However, before embarking on this venture, it’s crucial to fully understand the costs associated with creating and operating a company in this dynamic region. Let’s examine in detail the various financial aspects to consider for your successful establishment in Hong Kong.

Registration Fees: The Entry Ticket for Your Hong Kong Adventure

Registering a company in Hong Kong is a relatively simple and affordable step, but one that nevertheless involves certain unavoidable costs. In 2025, the basic fees for incorporating a limited liability company (LLC) amount to approximately 1,720 HKD (about 200 euros)[1]. This amount covers the filing fees with the Hong Kong Companies Registry.

However, it’s important to note that this amount represents only the tip of the iceberg. Indeed, to successfully complete the registration process, you should also budget for:

• Fees for a local registration agent: between 5,000 and 10,000 HKD
• Company name reservation fees: approximately 170 HKD
• Obtaining a Certificate of No Objection: approximately 240 HKD
• Document translation fees if necessary: varies depending on complexity

It is crucial to work with a reliable and experienced registration agent to ensure all documents are properly prepared and submitted. This may seem costly initially, but it will save you from potentially more expensive delays and complications later.

Compliance Costs: Staying Within the Lines Without Breaking the Bank

Once your company is registered, it’s essential to maintain compliance with local regulations. These recurring costs are often underestimated by new entrepreneurs, but they can significantly impact your operational budget.

The main compliance costs in Hong Kong include:

• Annual registration renewal fees: 105 HKD
• Tax return preparation and filing: between 5,000 and 20,000 HKD per year
• Company secretary fees (mandatory): approximately 6,000 to 12,000 HKD per year
• Mandatory annual audit: starting from 8,000 HKD for small businesses

It’s important to note that these costs can vary depending on the size and complexity of your business. A larger company or one with complex activities will generally require more extensive and therefore more expensive services.

Furthermore, if your business operates in a regulated sector (such as finance or insurance), you’ll need to budget additional costs to obtain and maintain necessary licenses. These fees can be substantial and must be carefully budgeted.

Initial Investment: Preparing the Ground for Your Success

Beyond registration and compliance fees, the initial investment to establish your presence in Hong Kong can vary considerably depending on your ambitions and industry sector. Here are some key elements to consider:

Share Capital: Although Hong Kong doesn’t impose a minimum capital requirement to create an LLC, it’s recommended to provide sufficient capital to demonstrate the seriousness of your project, especially if you plan to obtain an investor visa. A capital of 1 million HKD (approximately 115,000 euros) is often considered a good starting point[2].

Office Rental: Hong Kong is known for its high rents. In 2025, the average cost of renting quality office space in the city center is approximately 60 to 100 HKD per square foot per month. For a small 500-square-foot office, this represents a monthly rent of 30,000 to 50,000 HKD.

Equipment and Furniture: Budget at least 50,000 to 100,000 HKD to properly equip your workspace, depending on your specific needs.

Recruitment and Salaries: Qualified talent in Hong Kong is highly sought after and salaries can be high. For a small startup team (3-5 people), budget a monthly payroll of at least 150,000 to 300,000 HKD.

Marketing and Business Development: To make yourself known in the Hong Kong market, an initial marketing budget of at least 100,000 to 200,000 HKD is recommended.

It’s crucial to conduct thorough market research and develop a detailed business plan to accurately estimate the initial investment required for your specific project. Don’t hesitate to consult local experts to refine your financial projections.

Operational Expenses: Managing Your Daily Costs

Once your business is launched, effective management of operational expenses becomes crucial to ensure its sustainability and profitability. In Hong Kong, certain expense categories deserve particular attention:

Rent and Utilities: As mentioned previously, rent often represents one of the most significant expenses in Hong Kong. In addition to base rent, budget approximately 20 to 30% extra for utilities (electricity, water, internet, etc.).

• Mandatory Provident Fund (MPF) contributions: 5% of salary, capped at 1,500 HKD per month
• Health insurance: approximately 3,000 to 5,000 HKD per employee per year for basic coverage
• Paid leave: minimum 7 days per year, often more to attract talent

Professional Services: Regular use of legal, accounting, or consulting services can represent a significant expense. Budget at least 100,000 to 200,000 HKD annually for these services.

Marketing and Business Development: To maintain your market visibility, a continuous marketing budget is essential. Depending on your sector, plan to allocate 5 to 15% of your revenue to these activities.

Banking Fees: Banks in Hong Kong may charge monthly fees for business accounts, ranging from 200 to 450 HKD depending on the account type[3]. Make sure to compare offers and negotiate terms.

Insurance: Beyond health insurance for your employees, budget for professional liability insurance and possibly premises insurance. Costs vary according to your activity, but count on at least 10,000 to 20,000 HKD per year.

It’s crucial to monitor these expenses closely and regularly seek ways to optimize them without compromising the quality of your operations. Rigorous financial management is key to long-term success in a dynamic environment like Hong Kong.

Cost Reduction Strategies: Optimizing Without Compromising

Although Hong Kong offers numerous opportunities, its high cost of living can heavily impact a young company’s finances. Here are some strategies to optimize your expenses without sacrificing the quality of your operations:

1. Flexible Workspaces

• Coworking: Spaces like WeWork or The Hive offer fully equipped offices starting from 3,000 HKD per month.
• Virtual Offices: For approximately 1,000 to 2,000 HKD per month, you can obtain a professional address and call answering services.

These options allow you to significantly reduce your fixed costs while maintaining a professional image.

2. Strategic Outsourcing

• Accounting and Compliance: Specialized firms can handle these aspects for approximately 2,000 to 5,000 HKD per month.
• Digital Marketing: Local agencies can manage your online presence starting from 10,000 HKD per month.
• Customer Support: Call centers based in other parts of Asia can offer services in Cantonese and English at competitive rates.

3. Tax Optimization

• Take advantage of the two-tier corporate tax system: 8.25% on the first 2 million HKD of profits, 16.5% beyond that.
• Leverage R&D tax deductions: up to 300% for qualified expenses.
• Consider offshore holding structure to optimize international taxation.

4. Technology and Automation

• Integrated management software (ERP) adapted for SMEs
• Marketing and sales automation tools
• Video conferencing solutions to reduce travel

5. Networking and Strategic Partnerships

• Find competitive local suppliers
• Establish partnerships to share certain costs
• Access alternative funding opportunities (business angels, incubators)

By adopting a strategic approach and remaining flexible, it’s possible to significantly reduce operating costs in Hong Kong without compromising quality or growth opportunities. The key is to stay informed about the latest trends and opportunities in the local market.

Creating and managing a business in Hong Kong represents a significant investment, but the opportunities offered by this dynamic economic hub can largely offset these costs for well-prepared entrepreneurs. Meticulous planning, rigorous financial management, and a flexible approach are essential to successfully navigate this competitive environment.