Hong Kong Company Registration
Hong Kong remains one of the world's largest financial centres, despite the common belief that setting up a business there is a solution reserved for big players. In reality the barrier to entry is surprisingly low and formalities are kept to a minimum.
How is a company taxed in Hong Kong?
The tax system is based on the territorial principle – only profits earned in Hong Kong are taxed, and income generated outside its borders remains untaxed. There is also no VAT and no capital gains tax. Corporate income tax (CIT) is 16.5%, but applies only to locally generated profits. Dividends from foreign investments are not taxed in Hong Kong at all.
What does the registration process look like?
The most popular form of business is the Hong Kong Private Limited Company. To set it up you need one shareholder, one director and a symbolic share capital of HKD 1 (about PLN 0.50). Formally, registration can be completed within half an hour; in practice, because the registry verifies documents, it usually takes up to two weeks. The company must have a registered address and a company secretary who is a Hong Kong resident – this function cannot be performed by the director at the same time.
What should you know before registering?
The details of shareholders and directors of limited liability companies in Hong Kong are public and openly accessible – this increases credibility with counterparties but limits privacy, unless you use nominee directors and shareholders. The Common Reporting Standard (CRS) also matters: under it, banks automatically exchange information about account beneficiaries with the tax authorities of other countries – including Poland, if the company has no clearly settled question of Polish tax residency. Opening a bank account now requires a solid business justification – banks expect you to name counterparties, provide an office address or letters of recommendation.
Why is Hong Kong often a good choice?
A network of double taxation treaties covering, among others, China, the United Kingdom, the UAE, Malta and the Czech Republic means that a company based in Hong Kong can act as a trading intermediary between Europe and the Asian market, and also serve as a holding entity for equity investments in the region.
How do we help?
We guide you through the whole registration process – from choosing the company name (filed in both English and Chinese), through preparing the founding documents, to providing a registered address and a company secretary meeting the residency requirement. We also advise on securing the question of Polish tax residency, which has a direct effect on how your data will be treated under CRS information exchange.
Result: a company registered efficiently in one of the world's most recognisable trading jurisdictions, with the tax residency question secured and full compliance with local formal requirements.
