Hong Kong company formation for non-residents

What a Hong Kong company costs in year 1 and year 2

The Starter package is a fixed quote for the first year. That price already contains the government fees, a Hong Kong registered office for 12 months, the company secretary, statutory registers and a compliance calendar.

Growth (a fixed quote) adds a bank-account introduction and 12 months of mail scanning. Premium (a fixed quote) adds bookkeeping for 12 months and the year-2 annual filing.

The government side is fixed by two offices. The Companies Registry charges HK$1,545 for an electronic incorporation. The Inland Revenue Department charges HK$2,350 for a one-year Business Registration certificate starting between 1 April 2026 and 31 March 2027: a HK$2,200 fee plus a HK$150 levy.

Together that is HK$3,895, paid once when we file and already inside your package price (Companies Registry and IRD, as of September 2026).

From year 2 the renewal is a fixed quote on Starter. It covers the annual return fee, the Business Registration renewal, the registered office and the company secretary, and we show it on your quote before you pay.

• Included: incorporation filing, Business Registration certificate, registered office, company secretary, Significant Controllers Register, articles and share certificates
• Quoted separately: the statutory audit and profits tax return, accounting, and extra services such as a virtual office with phone line
• Late filings cost more: the annual return fee is HK$105 within 42 days and rises in steps to HK$3,480 when it is more than 9 months late

How long it takes, step by step

Most of the timeline is identity checks. The Companies Registry says certificates for electronic filings are normally issued within 1 hour, while paper filings take up to 4 working days. We file electronically.

Our clock starts when your KYC, including a short video call, is approved. Before that you upload a passport copy and a recent address proof for each director and shareholder, describe the business and confirm the source of funds.

We then file the incorporation form. When the certificate is issued, your Certificate of Incorporation, Business Registration certificate, articles and registers appear in the client portal. For a straightforward application this is from 1 business day after KYC approval.

• Before day 1: you choose a package and three possible names, upload documents and join a video call
• KYC approved: we check the name and file the incorporation form electronically
• From 1 business day after KYC approval: certificate, Business Registration and company documents in your portal
• Longer if the name is refused or KYC documents need follow-up

How Hong Kong taxes your company

Hong Kong uses a territorial system. The Inland Revenue Department taxes only profits that arise in or are derived from Hong Kong, at 8.25% on the first HK$2,000,000 of assessable profits and 16.5% on the remainder. Among connected entities, only one nominated entity can use the lower 8.25% band.

For the 2025/26 year of assessment, final profits tax is reduced by 100%, capped at HK$3,000 per case (IRD, as of September 2026).

A worked example: a company with HK$2,500,000 of assessable profits pays 8.25% on the first HK$2,000,000 (HK$165,000) and 16.5% on the remaining HK$500,000 (HK$82,500), so HK$247,500 before any one-off reduction.

Profits earned outside Hong Kong can be treated as offshore and not taxed, but the test is where the profit-producing activities actually happen. If your contracts are negotiated, signed and performed outside Hong Kong, you need records that show it. The IRD decides each claim on the facts, so plan this with your tax adviser before you rely on it.

The foreign-sourced income exemption (FSIE) regime has applied since 1 January 2023. It taxes dividends, interest, IP income and disposal gains received in Hong Kong by a member of a multinational group. An exception applies if the company meets the economic substance requirement or the participation exemption.

A multinational group here means a group with at least one entity or permanent establishment outside the parent's jurisdiction, with no size threshold. A standalone Hong Kong company with no group entity abroad is outside FSIE.

Your home country may also tax the company or you as the owner, for example through controlled foreign company rules. Check both sides before you choose the structure.

Annual compliance: what the law requires every year

Hong Kong has more annual work than offshore jurisdictions such as the BVI. The Companies Registry states that every company must have its financial statements audited, except companies that qualify as dormant. The auditor must be a Hong Kong certified public accountant.

The calendar has three fixed annual points, plus keeping the Significant Controllers Register current. The annual return (NAR1) is due within 42 days after each anniversary of incorporation, and none is due in the year you incorporate.

The Business Registration certificate is renewed every year or every three years. The profits tax return is filed with audited accounts when the IRD issues it, and business records must be kept for at least 7 years.

• Annual return (NAR1): within 42 days after the incorporation anniversary
• Business Registration renewal: yearly, or every three years if you choose the three-year certificate
• Audited accounts and profits tax return: on the date in the IRD notice
• Ongoing, not annual: keep the Significant Controllers Register current whenever ownership or control changes

Directors, shareholders, secretary and registers

A Hong Kong private company needs at least one director who is a natural person. There is no nationality or residency requirement, so a founder living in Vietnam, Germany or the US can be sole director and sole shareholder. Corporate shareholders are allowed.

The company secretary is where non-residents need help. The secretary must be an individual who ordinarily lives in Hong Kong, or a company with its registered office or place of business in Hong Kong. A sole director cannot also be the secretary, so we act as company secretary as a licensed Trust or Company Service Provider (TC001305).

Since 1 March 2018 every company keeps a Significant Controllers Register. It is not filed with the Companies Registry and is not public. It sits at the registered office, names a designated representative, and must be shown to law enforcement officers on demand.

What you provide and what we handle

For each director and shareholder we need a passport copy and a proof of residential address dated within the last three months. For the company we need a few lines on what it will do, where its customers and suppliers are, and where the starting capital comes from.

If a shareholder is a company, we also ask for its registry documents and the people who own or control it.

We check the name, prepare the articles and the incorporation form, and file with the Companies Registry. We pay the government fees, act as company secretary, provide the registered office and set up the Significant Controllers Register. After incorporation we keep the calendar for the annual return, the Business Registration renewal and your audited accounts, with a reminder well before each deadline.

• You provide: passport, address proof, business description, source-of-funds statement
• We handle: name check, filing, government fees, secretary, registered office, registers, reminders
• Minimum share capital: one share; there is no minimum paid-up amount

When Hong Kong is the right fit, including banking

Hong Kong companies can hold multi-currency accounts in HKD, USD and CNH (offshore Chinese renminbi), which suits sourcing and trading businesses. Opening one is the bank's decision.

Banks ask what the company does, who its customers and suppliers are, and where the people running it are based. Clear answers and real documents help most.

Hong Kong is not always the right answer. Compare it with two common alternatives:

• BVI business company: no statutory audit, suited to holding shares (see the BVI page)
• Singapore Pte. Ltd.: a Southeast Asia headquarters, with a resident director rule for non-residents (see the Singapore page)
• Hong Kong: trade with mainland China and Asia, with HKD, USD and CNH accounts, in exchange for an annual audit