It is inexpensive
The formation and registration fees are lower than in most other countries.
Taxes are low
For profits less than HKD 2 million, corporate taxes are only 8.25%.
Hong Kong is a global business centre
It has a fast-growing start-up ecosystem and is strategically located near China and Southeast Asia

Limited liability company
A limited company in Hong Kong is liable for its own debts and liabilities. Hong Kong allows 100% foreign participation. It must keep books and prepare annual accounts. The accounts must be audited each year and submitted to the Hong Kong tax office. A registered Hong Kong company can only be dissolved by liquidation or deregistration.

Branch of a foreign company
A branch is not a separate legal entity and is considered an extension of the foreign parent company. The parent company is therefore fully liable for the debts and liabilities of a Hong Kong branch. There is no need for a separate audit and the operation of a branch may be terminated upon notification to the Registrar of Companies

representative office
A representative office has no independent legal status in Hong Kong, so the foreign parent company is fully responsible for its debts and liabilities. Unlike a branch office, a representative office is not required to register with the Hong Kong Commercial Register, but it must apply for a business registration. A representative office is not permitted to enter into legal contracts alone, nor can it negotiate, sign transactions, issue invoices or engage in commercial activities on behalf of the parent company. On the basis that it does not conduct business in Hong Kong, a representative office should not make profits under Hong Kong taxation.

• It takes about 5 days to incorporate your company after ALL documents are in place. You should estimate approximately 2 weeks for the entire process.
• This includes the time to verify that the compliance standards are met and the whole process of signing and exchanging the documents.
• No, a personal presence in Hong Kong is not necessary for company formation. All documents and forms can be exchanged by mail.

• At least 1 Shareholder
• At least 1 managing director
• Hong Kong Licensed Company Secretary
• Registered office address
• Completed registration documents

• In order to process your transactions, a business account with a bank located in Hong Kong is required.

• The duration depends on the internal audit of the respective bank. Our experience shows that at least 3 weeks are to be expected. In exceptional cases, however, it may take several months, in case of queries from the bank.

• The company must already be registered with the company register.
• Depending on the bank, different requirements are made. Usually, the selected bank issues a list of the documents that need to be provided.
• The traditional banks require personal presence. With the new virtual banks, the application form can be filled out online, making personal presence unnecessary.
• Depending on the bank, a minimum deposit may be required.

• As one of the top five financial centres in the world, Hong Kong has one of the highest concentrations of banking institutions in the world. In total, there are about 190 authorized institutions.
• If your company is internationally oriented, it makes sense to choose one of the 4 major banks, as they offer products for all types and levels of companies.
• A new development in the banking landscape is the so-called virtual banks, which process everything online. Here, the personal presence in Hong Kong is also no longer necessary.

• Taxes on corporate profits
• No taxes on dividends
• No turnover or value added tax
• No withholding tax
• No capital gains tax
• No tax on dividends
• No inheritance tax

• Hong Kong has a two-tier tax system
• Corporate profits up to HKD 2 million are taxed at 8,25 %. Everything above that is taxed at 16.5%.

• No

• Hong Kong has a free trade policy. I.e. there is no customs tariff on goods imported into Hong Kong

• There is the possibility to apply for an investor visa.

• In addition to the salary, the employer is obliged to pay a share of the pension plan (MPF). This amounts to 5% of gross salary and a maximum of HKD 1,500.
• To get the best applicants, employers often offer voluntary benefits such as health insurance or housing allowance.

• The local labour market is very flexible thanks to legislation.
• There is a good supply of qualified personnel in the common sectors (finance, trade).
• KAYRO can help you find suitable employees.