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Company Registration in Hong Kong

Hong Kong offers one of the most attractive business environments with low taxes, fast registration, and full remote management. This guide details the benefits, costs, and processes involved in setting up a company in Hong Kong.

🍓 Why Hong Kong is Conceptually Better Than Other Jurisdictions for Business

  • Very few taxes
  • Fast registration - 5 working days
  • No requirements for physical presence in Hong Kong
  • Low company maintenance costs
  • Fully remote management of the company and bank account
  • International business prestige
  • Political neutrality
  • A trading company is suitable for any type of activity, no need for a business license for operations

🍓 Taxes, Reporting, and Audit

  • VAT: 0%
  • Dividend tax: 0%
  • Corporate tax on profits from activities outside Hong Kong: 0%
  • Corporate tax on profits from activities inside Hong Kong: 8.25% on profits up to HK$2 million (approximately US$250,000), 16.5% on any subsequent profits
  • Profit is considered earned in Hong Kong based on the presence of: a Hong Kong office, a Hong Kong counterpart, or employees from Hong Kong. If none of these criteria are met, profits are considered to be earned outside of Hong Kong
  • The auditor handles all tax reporting submissions
  • Only scanned bank statements from the company’s accounts need to be provided to the auditor
  • No need for accounting services

🍓 Costs and Timing

  • Company registration in Hong Kong costs US$1,900, including a virtual office and corporate secretary services for 1 year;
  • Annual company maintenance includes two components:
    • Office renewal and corporate secretary (up to US$1,000 per year)
    • Audit (ranging from US$2,400 to US$6,000 per year)

🍓 Banking

Opening a bank account in Hong Kong is only possible with substance in Hong Kong, which results in losing tax benefits. Therefore, we offer banking options outside of Hong Kong:

  • Mainland China (Bank of China, CZCB): A universal option, including for trade with Russia;
  • Switzerland (CIM Bank): Premium banking for international companies with beneficiaries outside Russia;
  • United Kingdom (Equals): Reliable and affordable operational banking for international companies;
  • Offshore banking (EQI Bank): For cryptocurrency operations and indirect settlements.

🍓 Cash-in

  • Sale of goods and services (VAT-free)
  • Loans from directors, shareholders, and third parties
  • Sale of shares and issuance of bonds
  • Shareholder contributions to the company’s capital
  • Sale of cryptocurrency

🍓 Cash-out

  • Director’s expenses, client entertainment (including hotels and restaurants)
  • Advertising expenses (including GoogleAds without 20% VAT)
  • Dividends

🍓 Assets

  • Any currencies, cryptocurrencies
  • Company shares, client debts
  • Gold
  • iPhones, MacBooks, furniture, art objects
  • Cars, yachts
  • Real estate (including rentals anywhere in the world)