Hong Kong maintains its position as a major international financial centre, offering entrepreneurs a unique combination of strategic location, stable legal system, and developed infrastructure. Thanks to these and other characteristics, opening a company in Hong Kong will remain relevant in 2025. At the same time, Hong Kong has not stayed aside from global changes in the field of corporate and tax legislation. In this article, we will consider what should be taken into account when opening a company in Hong Kong.
Hong Kong: The Significance of the Jurisdiction
In 2024, Hong Kong ranked 3rd among global financial centres (according to the Global Financial Centres Index), maintaining its position as one of the main financial centres in Asia and offering access to major Asian markets, including the Chinese market.
Moreover, Hong Kong traditionally occupies top positions in other rankings of various international organisations. For instance, in 2024, Hong Kong ranked 5th in the World Competitiveness Ranking, and according to the Economic Freedom of the World index, compiled based on data for 2022, it took first place, confirming its reputation as one of the most favourable jurisdictions for doing business.
Overall, among the key advantages of Hong Kong as a jurisdiction for company registration in 2025, the following aspects can be highlighted:
- Hong Kong cannot be classified as an offshore, so Hong Kong companies are more prestigious, and it is easier for them to conduct activities and engage with banks and counterparties than classic offshore companies;
- There is corporate taxation in Hong Kong, but corporate income tax rates are comparatively low compared to other developed jurisdictions;
- There is no currency control in Hong Kong, which makes Hong Kong companies convenient for cross-border operations;
- Hong Kong has a relatively simple tax system;
- Hong Kong is open to foreign investment and encourages business development.
Legal Basis for Registration and Operation of Companies in Hong Kong
The regulatory framework of Hong Kong governs the main directions for the establishment and subsequent operation of Hong Kong companies, in particular:
| Legislation | What It Regulates |
|---|---|
| Corporate Legislation |
The Companies Ordinance (Cap. 622) is the main legal act regulating the establishment and cessation of companies, as well as their management. |
| Foreign Investment |
The foreign investment regime is regulated by several legal acts of Hong Kong, as well as Hong Kong’s international agreements on foreign investments. There are no minimum requirements or restrictions regarding foreign investments in Hong Kong. Investors are free to repatriate or reinvest profits. |
| Intellectual Property Protection |
Regarding intellectual property protection, Hong Kong has also adopted a number of relevant regulations defining the procedures for protecting trademarks, copyrights, patents, and other intellectual property rights. Furthermore, as a Special Administrative Region of China, Hong Kong is a participant of the Paris Convention for the Protection of Industrial Property. This means that, for example, a patent registered in Hong Kong will be protected in other member countries of the Convention. |
| Taxation |
The main legal act in the field of taxation is the Inland Revenue Ordinance (Cap. 112), according to which Hong Kong’s tax system includes the following types of taxes:
Hong Kong adheres to the territorial principle of taxation, meaning that only income derived from sources within Hong Kong is subject to Profits Tax. In this regard, it is important to mention that since 2023, changes have come into effect whereby certain passive income (e.g., dividends, interest, royalties), received by a Hong Kong company from sources outside Hong Kong, may under certain conditions be subject to taxation in Hong Kong. In addition, Hong Kong imposes Stamp Duty, which is levied, in particular, on the sale or transfer of property or shares of Hong Kong companies. You can learn more about the principles of taxation of Hong Kong companies in our material. |
| Antitrust Legislation |
The Competition Ordinance (Cap. 619) prohibits practices aimed at preventing or restricting competition among companies in Hong Kong. |
These are just some of the aspects whose regulation guarantees the protection of business interests in Hong Kong, creating a stable and reliable environment for establishing companies.
Global Transparency Trends and Their Impact on Hong Kong
In recent years, global trends in combating tax evasion, money laundering, and other financial violations have intensified. The impact of these trends is expressed, among other things, in requirements for companies to ensure greater transparency. In practice, this means maintaining registers containing basic information about individuals who determine the activities of companies and transmitting such information to state authorities.
In Hong Kong, since 2018, companies are obliged to maintain and keep registers of persons exercising significant control (significant controllers) over such companies (analogous to a register of beneficial owners).
This register must be kept at the company’s registered address in Hong Kong or at another address within Hong Kong. The information contained in such a register is not public. However, a number of authorised state bodies can gain access to it. You can read more about maintaining the register of controlling persons in Hong Kong in our special material.
In addition to the register of controlling persons, Hong Kong companies are obliged to maintain the following registers:
- Register of directors;
- Register of shareholders;
- Register of company secretaries.
Unlike the register of controlling persons, information from these registers is transmitted to the state authority (Companies Registry) and is public.
Other Features of Hong Kong Corporate Structures
Let us focus on some features of Hong Kong companies that are important to consider when registering a company in Hong Kong.
Managing Parties
In addition to directors and shareholders, Hong Kong companies are required to appoint a secretary (company secretary). This can be either an individual or a legal entity that is a resident of Hong Kong. This distinguishes the secretary from directors and shareholders, for whom there are no residency or citizenship requirements.
In practice, the secretary is usually a legal entity registered in Hong Kong that provides companies with its registered address. The secretary maintains interaction with government authorities on behalf of the companies, ensures that the companies comply with all regulatory requirements, and is responsible for keeping all registers and certificates required by law.
Documents of a Hong Kong Company
In addition to the main set of documents (which in most jurisdictions includes the articles of association, memorandum of association, and resolutions on the appointment of directors and shareholders), upon registration, a Hong Kong company receives a Business Registration Certificate (BRC).
This document is issued by the Inland Revenue Department (the tax authority of Hong Kong). The BRC is valid for one year and requires renewal, as without a valid certificate, the company is not entitled to carry out operations.
Most types of activities in Hong Kong do not require obtaining additional permits. However, working in certain sectors requires obtaining a licence. For example, regulated activities requiring a licence include:
- Asset management,
- Advisory services in the field of corporate finance and/or securities,
- Trading in securities, futures contracts,
- Healthcare and insurance services.
Reporting Requirements for Companies in Hong Kong
Hong Kong companies are obliged to prepare the following types of reports:
| Type of Report | Brief Description |
|---|---|
| Annual Return |
Contains basic information about the company:
This report must be submitted annually to the Companies Registry with payment of the relevant fee. |
| Financial Statements |
Hong Kong companies are required to maintain accounting records and prepare annual financial statements. While accounting documentation may be stored anywhere at the discretion of the directors (including outside Hong Kong), the financial statements must be submitted to the Inland Revenue Department. |
| Audit |
The financial statements of Hong Kong companies are subject to audit by certified local audit firms or accountants. |
Procedure for Registering a Company in Hong Kong
Opening a company in Hong Kong involves the following steps:
| Registration Stage | Explanations |
|---|---|
| Choosing the Legal Form | The legislation of Hong Kong provides various forms for company registration, the most common of which is a limited liability company (Private Company Limited by Shares). |
| Choosing a Name | Certain requirements are established for company names, so before registration it is necessary to check the availability of the name. |
| Determining the Company Structure | When determining the structure, individuals who will act as directors and shareholders of the company are selected, as well as the company secretary. |
| Preparation of Documents for Registration | As a rule, the main company documents are prepared by a registration agent in Hong Kong. The owners and directors of the company (if a nominee service is not used) are required to provide:
|
| Payment of Fees and Submission of Documents to the Companies Registry | The company is registered by submitting documents to the Companies Registry and paying the relevant fees. This process takes up to 5 working days. Technically, it is usually carried out by a registration agent in Hong Kong. |
Opening a Bank Account for a Hong Kong Company in 2025
The next step after establishing a company in Hong Kong is opening a corporate bank account with one of the Hong Kong banks. To open an account, you will need at a minimum the founding documents of the registered company, as well as documents confirming the identity and sources of income of the business owners and management personnel. Additionally, the applicant’s personal presence in Hong Kong is required for opening the account.
Due to global trends in tightening banking compliance, Hong Kong banks are also intensifying their scrutiny of applicants seeking to open accounts. This manifests in more thorough evaluations of the company’s activities, verification of income sources, and the requirement for detailed information about the company’s beneficiaries and business partners. You should be prepared for the account opening process to take more time.
Furthermore, banks generally prefer Hong Kong residents and businesses, and there is a high likelihood they will refuse to open an account if the company’s activities have no connection to the Asian region (for example, if the company is involved in logistics in EU or CIS countries).
Conclusion
Hong Kong continues to be one of the most attractive jurisdictions for business registration due to its reputation as a reliable financial center and favorable corporate and tax legislation.
However, when opening a company in Hong Kong, one should take into account global trends aimed at strengthening checks on company beneficiaries and increasing business transparency.
