Hong Kong has the lowest tax rates in Asia and one of the lowest rates in the world.
The territory’s tradition of simple and low taxes is a major factor that contributes to its success as a preferred investment destination.
Why set up a Hong Kong company?
Best path to China
- Prime location at the gateway to China
- CEPA and lower withholding tax on dividends and royalties in China.
Well-founded banking facilities
- Convenient Internet banking systems
- No foreign exchange control
Very strong business environment
- No restriction on business scope
- World-class infrastructure and a good supply of high-quality manpower
Simple tax system
- No VAT, capital gains tax, and withholding tax
- Non–Hong Kong source income tax exemption
Setup requirements
Company name
- The same company name is prohibited under Hong Kong Companies Registry rules.
- Either an English name or a Chinese name; or
- Both an English and a Chinese name.
Shareholder(s) and director(s)
- No nationality restriction.
- Individual and/or corporate shareholders are acceptable.
- A corporate director is acceptable, but at least one natural person must act as a director.
Company secretary and registered address
Under the Hong Kong Companies Ordinance, appointment of a company secretary and a registered address is required.
Capital requirement
- Minimum subscribed share capital is 1 share (equivalent to HKD1).
- No par value for shares.
Hong Kong company annual maintenance
Stage 1 – Renewal of company documents
To satisfy government annual charges and complete statutory renewals before due dates, we send reminders to clients and help arrange the renewal process.
Stage 2 – Accounting (e.g. audit arrangement) and taxation
We notify clients to engage our tax filing and accounting services as required.
3 key annual maintenance features
In Hong Kong, each company needs to file tax returns on an annual basis. Companies are often recommended to choose either 31 December or 31 March as the financial year-end date, aligned with common practice for Hong Kong government reporting cycles.
Three key government departments for the annual maintenance of a Hong Kong limited company:
Business Registration Office (BRO)
- Renew business registration (BR)
Hong Kong Companies Registry (CR)
- Submit an annual return (e.g. AR1) each year to record current shareholder(s), director(s), and company secretary information.
Hong Kong Inland Revenue Department (IRD)
- Profits tax return (16.5% since 2008/09 and onwards)
- Salaries tax (15%) (Employer’s Return 56B)
Tax rates and filing forms change over time. This page is for general information only and is not legal or tax advice—seek professional advice for your circumstances.