Ultimate Guide: How to Set Up a Limited Company in Hong Kong (2025)
- a22162
- Sep 20
- 8 min read
Hong Kong Company Setup Guide
Ultimate Guide: How to Set Up a Limited Company in Hong Kong (2025)
Planning to start a business in Hong Kong? This comprehensive guide breaks down the process of setting up a limited company in HK, covering requirements, steps, costs, and key considerations for 2025.
Introduction
Hong Kong's reputation as a global financial hub, coupled with its simple tax system, business-friendly policies, and strategic location in Asia, makes it an ideal place to incorporate a company. Setting up a limited company in Hong Kong is a straightforward process, but understanding the specific requirements and steps is crucial for a smooth and efficient setup. This guide will walk you through everything you need to know to successfully register your business in 2025.
Why Choose Hong Kong for Your Limited Company?
Low and Simple Tax System: Hong Kong has a territorial tax system, meaning only profits sourced in Hong Kong are taxed. The corporate profits tax rate is very competitive, with a two-tiered system: 8.25% for the first HK$2 million of assessable profits and 16.5% for the rest.
Business-Friendly Environment: The government actively supports businesses with minimal bureaucracy and a clear legal framework.
Strategic Location: Its proximity to mainland China and other major Asian markets provides unparalleled access to a vast consumer base and supply chain.
Reputable International Image: A Hong Kong company is recognized globally, enhancing credibility and opening doors to international trade and finance.
Ease of Company Formation: The process is quick and relatively simple, allowing you to get your business up and running in a short period.
Essential Requirements for Setting Up a Limited Company in Hong Kong
Before you begin the registration process, ensure you meet the following prerequisites:
Company Name:
Must be unique and not identical to an existing company name.
Can be in English, Traditional Chinese, or both.
Must end with "Limited" or "有限公司".
Directors:
A minimum of one director is required.
Can be of any nationality and need not be a Hong Kong resident.
Must be a natural person (i.e., not a company).
Shareholders:
A minimum of one shareholder is required.
Can be of any nationality or a corporate entity.
The director and shareholder can be the same person.
Company Secretary:
A company secretary is mandatory for all Hong Kong limited companies.
Must be a natural person residing in Hong Kong or a corporate body with its registered office or place of business in Hong Kong.
The sole director of the company cannot also be the company secretary.
Registered Office Address:
Every company must have a valid physical address in Hong Kong (P.O. boxes are not permitted). This is where all official government correspondence will be sent.
Share Capital:
There is no minimum share capital requirement. You can start with as little as HK$1.
Step-by-Step Guide: How to Set Up Your Hong Kong Company
Follow these key steps to register your business with the Hong Kong Companies Registry (CR) and the Inland Revenue Department (IRD).
Step 1: Choose Your Company Name and Structure Select a unique company name and decide on your company's structure, including who will be the director(s), shareholder(s), and company secretary.
Step 2: Appoint a Company Secretary and Registered Address If you are a non-resident or don't have a local presence, it is highly recommended to engage a professional corporate service provider. They can act as your company secretary and provide a registered office address, ensuring you comply with all legal requirements.
Step 3: Prepare the Required Documents You will need to submit the following documents to the Companies Registry:
Incorporation Form (Form NNC1): This form provides details about the company, including its name, registered office, share capital, and particulars of the first director(s), shareholder(s), and company secretary.
Memorandum and Articles of Association (M&A): This document outlines the company's rules and regulations. While a standard template is often used, you can customize it to fit your specific business needs.
Identity Documents: Copies of the passport or Hong Kong ID of all directors and shareholders.
Proof of Address: Recent utility bill or bank statement for directors and shareholders.
Step 4: Submit Your Application to the Companies Registry You can submit your application either online via the "e-Registry" portal or by physically submitting the documents to the Companies Registry office. The online process is faster, with most applications processed within one business day.
Step 5: Receive Your Certificate of Incorporation and Business Registration Certificate Once the Companies Registry approves your application, you will receive the following:
Certificate of Incorporation (CI): The official document confirming the legal existence of your company.
Business Registration Certificate (BRC): Issued by the Inland Revenue Department, this document is required for all businesses operating in Hong Kong.
Step 6: Open a Corporate Bank Account With your CI and BRC, you can now proceed to open a corporate bank account. This can be a challenging step, as banks have strict due diligence requirements. Be prepared to provide detailed information about your business activities and ownership. A local corporate service provider can assist you with this process.
Step 7: Fulfill Post-Incorporation Compliance After your company is registered, you must adhere to ongoing compliance requirements, including:
Maintaining proper accounting records.
Filing annual returns with the Companies Registry.
Filing tax returns with the Inland Revenue Department.
Conducting an annual general meeting (AGM).
How Much Does It Cost to Set Up a Hong Kong Limited Company?
The cost can vary depending on whether you handle the process yourself or use a professional service provider.
Government Fees (as of 2025):
Company Incorporation Fee: HK$1,720 (online)/ HK$1,545 (physical)
Business Registration Fee: HK$2,200 (for a 1-year certificate) or HK$6,020 (for a 3-year certificate).
Professional Service Fees:
Basic incorporation packages range from HK$8,000 and include the government fees, company secretary service for the first year, and a registered address.
Conclusion
Setting up a limited company in Hong Kong is a strategic move for entrepreneurs and businesses looking to tap into a dynamic market with a low-tax and pro-business environment. While the process is straightforward, engaging a professional corporate service provider can save you time, effort, and ensure full compliance with all local regulations. By following this guide, you will be well on your way to establishing a successful business in one of the world's most vibrant economies.
Bestar Hong Kong: Your All-in-One Partner for Business Success in Hong Kong
Ultimate Guide: How to Set Up a Limited Company in Hong Kong (2025)
Discover how Bestar Hong Kong provides comprehensive business solutions, from seamless company formation to expert accounting, tax, and HR services, helping you thrive in the Hong Kong market.
Introduction
Navigating the complexities of company incorporation and ongoing compliance in a new market can be a daunting task. While Hong Kong's business environment is highly favorable, having a reliable local partner is essential for a smooth and successful launch. This is where Bestar Hong Kong comes in. Bestar offers a comprehensive suite of professional services designed to support businesses at every stage, from initial setup to long-term growth.
How Bestar Hong Kong Can Help Your Business
Bestar Hong Kong provides a "one-stop solution" for entrepreneurs, SMEs, and multinational corporations. Our services are designed to minimize administrative burdens, ensure legal compliance, and provide strategic financial advice, allowing you to focus on your core business.
1. Seamless Company Incorporation and Formation
Setting up a limited company in Hong Kong is the first critical step, and Bestar ensures this process is fast, efficient, and fully compliant. We handle the entire lifecycle of company formation, including:
Expert Guidance: Bestar's professionals provide tailored advice on the most suitable business structure for your needs, whether it's a private limited company, sole proprietorship, or partnership.
Document Preparation and Submission: We manage all the necessary paperwork, from preparing the Articles of Association to submitting the final forms to the Companies Registry.
All-in-One Packages: Bestar offers bundled services that include company registration, the mandatory appointment of a company secretary, and a registered office address, streamlining the entire process.
Fast-Track Service: With our expertise and established processes, Bestar can significantly expedite the incorporation timeline, getting your business up and running in as little as one business day.
2. Corporate Secretarial Services: Ensuring Ongoing Compliance
A company secretary is a legal requirement in Hong Kong. Outsourcing this function to a professional firm like Bestar is a smart move that guarantees statutory compliance and frees you from administrative tasks. Bestar's corporate secretarial services include:
Statutory Compliance: We ensure your company adheres to all legal requirements, including filing annual returns, preparing board resolutions, and maintaining statutory records.
Liaison with Authorities: Bestar acts as the official liaison with government bodies such as the Companies Registry and the Inland Revenue Department, handling all official correspondence and filings on your behalf.
Record Management: We are responsible for managing and updating key company records, including the Register of Directors, Shareholders, and the Significant Controllers Register.
3. Comprehensive Accounting and Tax Solutions
Hong Kong's simple tax system is a key benefit, but navigating financial regulations requires a professional touch. Bestar provides a full suite of services to manage your company's finances and ensure you leverage the tax benefits effectively.
Bookkeeping and Accounting: Bestar handles daily financial record-keeping, including managing accounts payable/receivable and preparing financial statements in compliance with the Hong Kong Financial Reporting Standards (HKFRS).
Audit Assistance: All Hong Kong limited companies are required to have their financial statements audited annually. Bestar prepares the necessary documentation and liaises with independent auditors to ensure a smooth and efficient process.
Tax Advisory and Filing: Bestar assists with the preparation and filing of Profits Tax returns and Employer's Returns. Our tax professionals also offer strategic tax planning advice to help you legally minimize your tax liability.
4. Payroll and HR Consulting
Managing payroll can be a time-consuming and complex task, especially with considerations like the Mandatory Provident Fund (MPF). Bestar offers payroll outsourcing services to streamline this process, ensuring accuracy and confidentiality.
Payroll Management: We handle the precise calculation of salaries, bonuses, and mandatory MPF contributions.
Employment Pass Applications: For businesses with international employees, Bestar also assists with the application for employment passes, further simplifying HR administration.
Confidentiality: Outsourcing payroll to a third party ensures that sensitive salary information is handled by a neutral and secure provider, maintaining internal confidentiality.
5. Strategic Advisory Services
Beyond core compliance services, Bestar acts as a trusted advisor to help businesses make informed decisions and achieve their strategic goals. Their advisory services include:
Financial Advisory: Bestar can assist with due diligence, company valuation, and mergers and acquisitions (M&A).
Risk Management: We provide consulting on risk management and internal controls, helping businesses protect their assets and enhance operational efficiency.
Business Consulting: With our deep local expertise, Bestar helps companies optimize their business models, identify new market opportunities, and manage cross-border business and investment.
Conclusion
Bestar Hong Kong's integrated approach to corporate services makes us an invaluable partner for any business looking to establish or expand in Hong Kong. By combining professional expertise in company formation, compliance, accounting, and strategic advisory, we provide a reliable and comprehensive solution that allows you to confidently focus on what truly matters: growing your business.
Keywords:
Set up limited company Hong Kong
Hong Kong company formation
Company registration HK
How to register a company in Hong Kong
Limited company HK
Business registration Hong Kong
Incorporate in Hong Kong
Hong Kong company setup requirements
Cost to set up a company in HK
Bestar Hong Kong services
Hong Kong company formation Bestar
Bestar Hong Kong accounting
Bestar HK corporate secretarial
Bestar business solutions
Hong Kong company setup with Bestar
Bestar Hong Kong payroll
Bestar tax advisory Hong Kong
Comments