Article: 6063

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Company setup in Companies Registry of HKSAR Government, Hong Kong

State dutyloading

Terms days

This company can engage in any type of activity that does not require a separate license from regulatory authorities, including the provision of services, trading, consulting, technological, marketing, and other permitted activities in accordance with applicable law.

The Companies Registry allows companies to engage in and combine an unlimited number of business activities within a single entity.

About the company's activities

Types of activities

The Companies Registry allows companies to engage in and combine an unlimited number of business activities within a single entity.

Share Capital Requirements

The minimum share capital required for Hong Kong company is HKD 10,000. Its contribution is optional.

Additional External Regulator Approvals

No separate license is required to register a company conducting this type of business activity.

Company name requirments

May contain the name of a shareholder
Must not violate the country laws or contain words that are obscene, indecent or generally offensive
Must not contain the names of Allah, Buddha or God, or any other religious terminology
Must not infringe any third party's intellectual property rights
Must not be identical or similar to local/global brands or registered trademarks
Must not contain geographical names, such as the names of emirates, cities, countries and other landmarks
Must not contain the names of local/international religious, political or governmental organizations
Must not contain words, such as "Bank", "Insurance", "Investment", "Capital", "Financial", as well as other terms that refer to financial services
Must correspond to the company’s business activities

About Jurisdiction

Name and Description

Title: Companies Registry, Government of the Hong Kong Special Administrative Region
Description:
Hong Kong is a Special Administrative Region of China with its own legal, financial, and tax systems based on English common law, which differ significantly from the laws of mainland China. The region ranks among the world’s top three financial centers and serves as a key gateway to the markets of mainland China, Southeast Asia, and Western countries. It is a prestigious, tax-efficient jurisdiction that attracts international trading companies, holding structures, investment firms, fintech startups, IT businesses, and consulting companies.

In Hong Kong, company registration is handled by the Companies Registry, which is responsible for maintaining the register and issuing incorporation documents. Under the Closer Economic Partnership Arrangement (CEPA), companies registered in Hong Kong can conduct international business freely and gain simplified access to the mainland China market without the need to establish a separate legal entity.

Hong Kong’s leading business sectors:
- Holding and investment activities
- Trade and logistics
- Professional services and consulting
- Information technology
- Media, advertising, and marketing
Hong Kong’s unique legal status, flexible tax system, and strategic location ensure a strong international business reputation and support the sustainable growth of companies across Asian and global markets.

Tax regime and income management

Hong Kong has several taxes and fees that regulate the financial activities of both legal entities and individuals. Below are the main ones.
1. Value Added Tax (VAT)
  Hong Kong does not apply a value-added tax (VAT / GST).
  
  There is no traditional VAT system in place within the jurisdiction: most goods and services, including imports and exports, are not subject to VAT. This rule applies to both local and foreign companies registered in Hong Kong.
  
  All companies incorporated in Hong Kong are exempt from collecting or paying VAT, except in cases where they conduct business in other countries where VAT is applicable. In such cases, the company must comply with the tax regulations of the relevant jurisdiction.
2. Corporate Tax
  Hong Kong follows a territorial taxation principle, meaning that only profits arising from or derived in Hong Kong are subject to corporate income tax. Profits earned outside of Hong Kong are exempt from taxation — even if they are later remitted to Hong Kong.
  
  Corporate Profits Tax Rates:
  - 8.25% — on the first HKD 2,000,000 of assessable profits (for private companies)
  - 16.5% — on the portion of profits exceeding HKD 2,000,000
  For non-resident companies conducting business outside of Hong Kong, the tax rate may be 0%, provided they can prove that the income has no Hong Kong source. The Inland Revenue Department (IRD) determines this based on an analysis of the company’s operations and value creation chain.
  
  Entities exempt from corporate tax:
  - Non-profit and charitable organizations registered with the IRD
  - Companies that do not carry out business in Hong Kong and earn no income from within its territory
  - Certain pension and educational funds, if they meet specific eligibility criteria
3. Excise Tax
  Hong Kong imposes an Excise Duty, which applies exclusively to specific categories of goods. The primary purpose of this tax is to regulate the circulation of potentially harmful or controlled products.
  
  Excise Duty is levied on the import, manufacture, and storage of the following goods:
  - Tobacco products;
  - Alcoholic beverages with an alcohol content exceeding 30%;
  - Methanol;
  - Hydrocarbon oil (including petrol and aviation fuel).
  Excise duty rates vary depending on the type and quantity of the product and are set in accordance with local legislation:
  - Tobacco — taxed by weight and quantity (including cigarettes, cigars, and loose tobacco);
  - High-strength alcohol — taxed per litre of pure alcohol (HKD/litre);
  - Fuel and methanol — taxed per litre or tonne according to established rates.
  Alcoholic beverages with an alcohol content below 30% (such as wine, beer, and liqueurs) have been exempt from excise duty since 2008.
  
  Companies dealing with dutiable commodities must register with the Hong Kong Customs and Excise Department, maintain proper records, obtain relevant licenses, and submit regular reports.
4. Customs Duties
  Hong Kong is a free port where no customs duties are levied on most imported and exported goods. This policy applies to a wide range of products, including raw materials, equipment, finished goods, and food, making Hong Kong one of the most liberal trade regimes in the world.
  
  The only exceptions are a few categories of dutiable commodities, which are subject to Excise Duty:
  - Tobacco products;
  - Alcoholic beverages with an alcohol content exceeding 30%;
  - Methanol;
  - Hydrocarbon oil (including petrol and aviation fuel).
  Import, export, and transit of all other goods through Hong Kong are exempt from duties, quotas, or other trade restrictions. This greatly simplifies international logistics and reduces the cost of moving goods through the region.
  
  Goods are not subject to customs declaration for duty purposes, except in the case of dutiable items. However, companies importing specific categories of goods (e.g., pharmaceuticals, chemicals, or products of animal origin) must comply with licensing requirements and sanitary regulations.
5. Personal Income Tax
  Salaries Tax in Hong Kong is levied only on income derived from employment physically performed within Hong Kong. The tax system is based on the territorial source principle: if the work is carried out outside Hong Kong, the related income is not subject to taxation — even if the funds are transferred to a Hong Kong bank account.
  
  Taxable income includes:
  - Salaries and wages
  - Bonuses and commissions
  - Other forms of employment-related compensation
  The following types of income are not subject to tax:
  - Dividends
  - Interest
  - Capital gains
  - Inheritance and gifts
  The tax is calculated on a progressive scale ranging from 2% to 17%, with a maximum effective rate of 15% after the application of standard deductions.
6. Local Taxes and Fees
  There are no taxes in Hong Kong on capital gains, dividends, interest, or inheritance.
  
  There is also no luxury tax or property tax (except for rental income from Hong Kong property).
  
  The tax system is designed to be as simple and business-friendly as possible, supporting entrepreneurship and international trade.
7. Stamp Duty
  - Charged upon the transfer of:
  - Real estate;
  - Shares of Hong Kong companies.
  - Rates depend on the asset value and terms of the transaction.
  - The rate for residential property transfer can reach up to 15%.
  - The rate for share transfer is 0.13% of the transaction value.
8. Property tax
  - Property Tax is levied on landlords.
  - Rate: 15% of the gross rental income, after a standard deduction of 20% for expenses.