Hong Kong’s three main business structures are the limited company, the sole proprietorship and the partnership. While most new investors opt for a limited company, you can explore the options below to determine which structure best suits your needs:
The most common choice for a new business is a private limited company. It operates as a separate legal entity with privately-held shares (unlike a public company funded via an IPO). It is incorporated in Hong Kong with limited liability, so your personal assets are protected from business debts. You are entitled to the two-tier corporate tax rate and benefits such as the Closer Economic Partnership Arrangement (CEPA), a free trade agreement with Chinese Mainland.
A business owned and run by one person. It is the simplest and cheapest to set up, but it is not a separate legal entity, so you are personally responsible for all business debts.
Two or more people share ownership, profits and responsibilities. In a general partnership, every partner is personally liable for the business’s debts; a limited partnership lets some partners limit their liability to the amount they invest.
For an existing business expanding from overseas:
For an existing overseas business setting up a presence here. It is not a separate legal entity, so the parent company is responsible for its debts.
An independent private limited company incorporated and registered in Hong Kong, wholly or majority-owned by the overseas parent company. The Hong Kong subsidiary independently bears its own financial risks and legal responsibilities.
For exploring the market without full operations. It cannot make profits and is limited to activities such as market research or liaison. Switch to a limited company or branch office once you take on legal obligations.
The primary difference between incorporated and unincorporated companies is that incorporated companies, including limited companies and subsidiary, exist as separate legal entities distinct from their owners with limited liability. Whereas unincorporated entities—which include sole proprietorships, partnerships, as well as branches and representative offices—are legally inseparable from their parent owners or operators, making the underlying owners directly responsible for the business’s debts and liabilities.
When you apply to incorporate a limited company (including subsidiaries) with the Companies Registry, your business registration is handled at the same time — the Business Registration Certificate is issued alongside your Certificate of Incorporation.
Apply online via the 24-hour e-Services Portal of the Companies Registry (CR), or submit hard-copy documents to the CR with the correct fees.
Any application for company incorporation will include a simultaneous application for business registration.
You will need to get the below forms and documents ready:
You need to pay a company registration fee plus the business registration fee and levy. For the latest fees, please refer to the Companies Registry and Inland Revenue Department.
Online applications: For company incorporation and business registration are normally processed within one hour.
Hard copy applications: The Certificate of Incorporation and Business Registration Certificate are typically issued within four working days.
Depending on your industry, you may need particular government licences, permits, certificates, or approvals to start your business operations in Hong Kong. You can search the Business Licence Information Service online to easily identify the specific operational licences required for your business.
Hong Kong has one of the world’s most tax-friendly systems, with only three direct taxes and generous allowances and deductions:
8.25%
on the first HK$2 million of corporate profits and 16.5% above that (7.5% and 15% for unincorporated businesses).
2% - 17%
progressive rates are capped at a two-tier standard rate of 15% on the first HK$5 million of net income and 16% on the remainder.
15%
standard rate on net assessable value, applied after deducting rates and a 20% statutory repairs allowance.
Moving to Hong Kong – whether to expand your business, deploy key team members, or pursue your own personal career – is straightforward and flexible. While professionals from over 170 countries and territories can enter Hong Kong visa-free for short-term business visits of 7 to 180 days, longer stays are catered to through a diverse range of visa pathways.
Investment-linked Residency Schemes
New Capital Investment Entrant Scheme (New CIES)
a residency route for high-net-worth individuals who invest at least HK$30 million in permissible assets in Hong Kong.
Residency for founders who contribute to Hong Kong’s economy; startups backed by government-sponsored programmes may be viewed favourably. Find out more about our startup ecosystem through our StartmeupHK initiative.
Talent Admission Schemes
For high-earning professionals or graduates from one of the world’s top universities.
Quality Migrant Admission Scheme (QMAS)
Highly skilled professionals can apply for residency under this points-based system. No local job offer needed before arrival.
Admission Scheme for Mainland Talents and Professionals (ASMTP)
If you are from Chinese Mainland with unique skills not easily found in Hong Kong, this open-to-all-industries and quota-free scheme could be your pathway.
Technology Talent Admission Scheme (TechTAS)
Companies granted quotas by the Innovation and Technology Commission (ITC) can fast-track work visas or entry permits for non-local technology talent to conduct R&D in Hong Kong, within the 24-month quota validity period.
Sector-specific Labour Importation Schemes
Administered by the relevant bureaux and departments of the HKSAR Government, or by statutory organisations of the HKSAR in conjunction with the specific sectors, these schemes allow employers with genuine difficulties in recruiting suitable labour locally to bring in labour from outside Hong Kong.
General Employment Policy (GEP)
The GEP allows companies to hire overseas professionals with special skills, knowledge or experience under this no-quota, open-to-all-sectors programme.
Remarks: The Technology Talent Admission Scheme (TechTAS) and Sector-specific Labour Importation Schemes are not applicable for direct individual applications.
Successful visa recipients can bring their spouse and children under 18 to Hong Kong, given they have adequate financial resources and appropriate housing.
For details, kindly refer to the Introduction of Admission Schemes for Talent, Professionals and Entrepreneurs.
Incorporate and register your business before you approach a bank, as you will be required to present your Certificate of Incorporation and Business Registration Certificate as appropriate. While specific requirements vary from bank to bank, you should generally expect to provide identity and address proofs for every owner, as well as make an initial opening deposit.
Need more details? Check out the Hong Kong Monetary Authority. If you are wondering how much it will cost to run your business in Hong Kong, get a quick estimate by selecting your options below.
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Data Sources: Rating and Valuation Department and Census and Statistics Department of the HKSARG.
The estimated costs are our best estimation based on existing data sources available and they are provided on an “AS IS” basis without any express of implied warranty of any kind by InvestHK.")
Please provide the information below if you would like to download the full estimation report in Excel format with detailed breakdown, including relevant links to costs related to startup.
Data Sources: Rating and Valuation Department and Census and Statistics Department of the HKSARG.
The estimated costs are our best estimation based on existing data sources available and they are provided on an “AS IS” basis without any express of implied warranty of any kind by InvestHK.")
Note: The Directory is not a comprehensive list. The information on the Directory is provided for a general, indicative purpose only and does not imply having obtained InvestHK’s endorsement or recommendation. Users are recommended to make their own assessment of the information contained on this Directory and to verify such information by making reference, for example, to original publications and obtaining independent advice before acting upon it.
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