Attorney, Family Office

Concept

A Private Limited Company in Hong Kong is an effective vehicle for international business due to its flexible and transparent tax regime.

Hong Kong applies a territorial taxation principle: only income derived within the jurisdiction is subject to tax, while foreign-sourced income is exempt if certain conditions are met.

This makes Hong Kong attractive for entrepreneurs who value legal reliability, administrative simplicity and access to a major financial market. Hong Kong companies are suitable for trading, asset management and holding structures.

🍓

Incorporation takes 2–3 business days, does not require personal presence or share capital.

Structure

A minimum of one shareholder and one director is required. These may be the same person or entity whether individual or corporate. At least one director must be a natural person. Appointed parties are not required to be Hong Kong residents.

A registered address in Hong Kong is mandatory, although a physical office is not required. All notices and correspondence may be received via the corporate secretary.

A corporate secretary is a mandatory member of the structure, this must be a licensed local provider. Their role is to maintain corporate records, file statutory returns and notify the authorities of any changes. The secretary does not participate in company management.

The share capital is determined by the company. It can be deposited at any time into the corporate account. There is no deadline or penalty for non-deposit.

A typical share capital amount is HKD 10,000. This figure is viewed favourably by banks and facilitates account opening.

Taxation

The tax system is based on the territorial principle: only income sourced within Hong Kong is taxed.

If business activities are carried out in Hong Kong the company is considered onshore and subject to profit tax. If the income is sourced outside of Hong Kong the company is considered offshore and exempt from taxation.

Tax rates

8.25%–16.5%

If income is derived from activities in Hong Kong:

8.25% — on the first HKD 2 million

16.5% — above HKD 2 million

On dividends, capital gains, VAT, interest and withholding tax

If income is derived from activities outside of Hong Kong

Applications

Thanks to its neutral tax regime and flexible regulation Hong Kong companies remain a versatile tool for international structuring.

They are used in various formats depending on the business objectives:

‣

Personal holding company

‣

Holding

‣

Operating

‣

Financial

Costs

Company incorporation

One-time fee of USD 1,900

Annual licence renewal

The company must renew its licence annually. If the licence is not renewed the company is deemed inactive and loses the right to operate.

1 month	1 year	5 years
USD 116	USD 1,400	USD 7,000

Financial and audit reporting

Audit is a key compliance requirement in Hong Kong. It must be conducted by an auditor registered with HKICPA to confirm compliance with HKFRS, tax laws and the territoriality principle.

🍓

Timelines and audit costs depend on business volume.

Annual turnover	Transaction volume	Cost
Up to USD 120,000	Up to 100	USD 2,400
Up to USD 120,000	100–200	USD 2,800
Up to USD 500,000	Up to 100	USD 3,600
Up to USD 500,000	100–200	USD 4,000
Up to USD 1,000,000	Up to 100	USD 5,200
Over USD 1,000,000	Over 100	Custom