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Hong Kong is a premier global hub offering 100% foreign ownership, a robust common law system, and a low 16.5% territorial tax with zero capital gains. Its world-class logistics and strategic location make it the ideal gateway to fast-growing Asian markets.
Establishing a local presence is highly efficient, featuring entirely digital registration that takes days. Foreign entrepreneurs enjoy full control without local partner requirements, gaining seamless access to major global banking systems and a business-friendly legal environment.
Hong Kong and the United States have no double tax treaty. Since HK uses a territorial system, offshore profits are tax-free. US citizens must still file with the IRS but can use credits like FTC or FEIE to avoid double taxation.
Main industriesfor Business in Hong Kong
Trading and Logistics
A major regional hub powered by a world-class cargo airport and deep-water port, dominating international import-export trade and supply chain operations.
Financial Services
An international financial hub driven by banking, asset management, and insurance. It operates with free capital flow and acts as the main gateway to mainland China.
Professional and Producer Services
Includes top-tier legal, accounting, and consulting services that support global corporate operations, business transformation, and compliance in the region.
Tourism
A vital employment driver that fuels the local economy, benefiting hotels, retail, and a world-renowned dining sector for business and leisure travelers.
What are the tax rates for businesses and investors in Hong Kong?
Hong Kong operates under a highly competitive, low-tax territorial system. The corporate tax rate is structured on a two-tier system: 8.25% on the first HKD 2 million of profits, and 16.5% on any profits above that amount. Furthermore, Hong Kong does not levy capital gains tax, withholding tax on dividends or interest, sales tax (VAT/GST), or inheritance tax. Taxes are only applicable to profits sourced directly within Hong Kong.
Yes, foreigners can 100% own a business in Hong Kong. The region allows absolute foreign ownership across almost all business sectors. Non-residents can act as the sole director and shareholder of a Hong Kong Limited Company without any requirement for a local partner or resident director. However, foreign companies must appoint a locally resident Company Secretary (which can be a corporate service provider) and maintain a physical, registered office address in Hong Kong.
How long does it take to incorporate a company in Hong Kong?
Company incorporation in Hong Kong typically takes between 1 and 5 business days. If you register a company online through the 24-hour "e-Registry" portal provided by the Companies Registry, approval and the issuance of the Certificate of Incorporation can happen within a few hours. Setting up a business via physical application or registering a local branch of a foreign corporation usually takes around 5 to 7 working days.
Is Hong Kong a separate legal and economic jurisdiction from Mainland China?
Yes, Hong Kong maintains a distinct legal and economic framework under the "One Country, Two Systems" principle. Unlike Mainland China’s civil law structure, Hong Kong retains its own independent common law legal system inherited from the UK. The region also operates its own customs territory, uses its own currency (the Hong Kong Dollar - HKD), and enforces independent immigration policies and data protection regulations, guaranteeing the free flow of capital, information, and goods.
What is the minimum capital requirement to start a company in Hong Kong?
There is no high minimum share capital requirement to incorporate a company in Hong Kong. The standard legal minimum is just 1 share of HKD 1, making it highly accessible for startups and international investors. While there is no technical upper limit, companies can choose to increase their authorized and issued share capital at any time to match operational needs or investor requirements without paying capital duty.
Can a non-resident open a corporate bank account in Hong Kong?
Yes, non-residents can open a corporate bank account in Hong Kong, but the process involves strict compliance. Due to stringent international Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, international banks require extensive documentation. This includes proof of business existence, ultimate beneficial owner (UBO) identification, business plans, and evidence of source of wealth. Many foreign founders leverage digital business accounts or fintech platforms as a faster alternative to traditional banks.
What are the best sectors for foreign investment in Hong Kong?
The top sectors for foreign investment in Hong Kong are financial services, e-commerce, logistics, and technology. As the primary financial gateway to Asia, the city attracts massive investment in fintech, asset management, and wealth tech. Its world-class port and airport logistics infrastructure make it an ideal hub for cross-border e-commerce supply chains. Additionally, the government aggressively supports biomedical engineering, artificial intelligence, and green finance initiatives.
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Why H&CO?
We specialize in guiding global investors, families, and multinational businesses through the complexities of cross-border investments and business expansion. With offices in over 30 countries, we are a trusted partner for those seeking to relocate, invest, or expand their business abroad providing tax, advisory, and integrated global solutions.
1,000+ multilingual professionals, providing local expertise with a global perspective.
Client-focused leadership with deep industry experience in global markets.
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