↳ HONG KONG

Asia's gateway, taxed only on what's earned within it.

Establishment of a Company (Private Limited Company) in Hong Kong

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Hong Kong is one of the world’s leading international financial centers, offering a territorial tax regime, low corporate tax rates, and a highly efficient business environment.

Operating under the “One Country, Two Systems” framework, Hong Kong maintains a separate legal and tax system from mainland China. Its common law framework, simple taxation, and strong banking infrastructure make it attractive for international trade and investment structures.

Profits tax is applied under a two-tier system:

• 8.25% on the first HKD 2 million of assessable profits  
• 16.5% on profits above HKD 2 million

Only Hong Kong-sourced profits are subject to tax. Offshore (non-Hong Kong sourced) income may be exempt, subject to review and substance requirements.

Dividends are not subject to withholding tax in Hong Kong.

1. Advantages

• Territorial Tax System  
• Low Corporate Tax (8.25% / 16.5%)  
• 0% Withholding Tax on Dividends  
• No VAT / No GST  
• No Capital Gains Tax  
• 45+ Double Tax Treaties  
• International Financial & Banking Hub

2. Utilization

• Consultancy business
• International Trading Companies  
• Holding Companies
• Maritime Consultancy  
• Investment Structures  
• Regional Headquarters  
• E-commerce & Technology Companies

3. Why Hong Kong?

Hong Kong applies a territorial taxation system, meaning only profits derived from Hong Kong are taxable. Foreign-sourced income may qualify for exemption depending on substance and regulatory compliance.

The jurisdiction provides access to Asian markets, robust financial infrastructure, and a well-established legal system based on English common law.

Its strategic geographic position supports international trade and investment activities throughout Asia-Pacific.

4. Corporate Requirements

The most common entity is Private Limited Company

Key Features:

• Minimum one shareholder  
• Minimum one director (individual)  
• Company secretary required (Hong Kong resident or corporate provider)  
• Registered office in Hong Kong mandatory  
• No minimum paid-up capital (commonly HKD 1)
• Annual audited financial statements are required.

5. Other Requirements

• No VAT or GST system in Hong Kong  
• Business Registration Certificate required  
• Annual renewal fees apply
• Economic substance and offshore claim documentation may be required to support non-Hong Kong source income treatment.

6. Compliance & Filing

• Annual profits tax return  
• Annual audited financial statements  
• Annual return filing with Companies Registry  
• Business Registration renewal  
• Employer reporting (if applicable)
• Profits tax returns are generally issued annually by the Inland Revenue Department.

7. Double Tax Treaty Network

Hong Kong maintains 45+ Double Tax Treaties, including with:

• United Kingdom  
• China  
• UAE  
• Singapore  
• Netherlands  
• France

Treaty access depends on residency and substance conditions.

8. Type of Legal System

Common Law system based on English legal principles.

9. General

Established international financial center with simple taxation, strong regulatory credibility, and global connectivity.

10. The Choice of Hong Kong is a Choice of Asian Market Access & Territorial Tax Efficiency

The Choice of Hong Kong is a Choice of Asian Market Access & Territorial Tax Efficiency

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