Starting a business in Hong Kong remains one of the smartest decisions for entrepreneurs seeking a stable, low-tax, and globally connected environment. Whether you're a local founder or a foreign investor, the city offers unmatched advantages—efficient company formation, straightforward compliance, and access to substantial government support programs for startups and small businesses.

This article provides a practical, step-by-step guide to help you navigate business registration in Hong Kong, access SME grants and funding, set up essential services like accounting and coworking spaces, and stay compliant with local tax laws. From government support schemes to virtual office solutions and startup funding, we’ll cover everything you need to successfully start and grow a business in Hong Kong.

If you’ve searched for terms like “how to start a business in Hong Kong,” “Hong Kong business registration,” or “SME support in Hong Kong,” this guide was written with you in mind. You’ll get clear answers, actionable tips, and up-to-date information tailored for 2025.

Why Start a Business in Hong Kong?

Hong Kong has long stood out as one of the world’s most accessible places to do business. For entrepreneurs, startups, and SMEs, it combines fast company formation with pro-business policies, low taxes, and strategic access to regional markets like Mainland China and Southeast Asia.

If you’re searching for “why start a business in Hong Kong” or exploring “doing business in Hong Kong as a foreigner,” here are the reasons people choose this city to launch and grow companies:

Strategic Location in Asia

Hong Kong is a gateway between East and West. It’s within five hours of half the world’s population, making it ideal for businesses targeting both Asian and global markets. Its proximity to Mainland China also gives companies easier access to Chinese consumers through the Closer Economic Partnership Arrangement (CEPA).

Low and Simple Tax System

Corporate profits are taxed at 8.25% on the first HKD 2 million and 16.5% thereafter. There is no VAT, no capital gains tax, and no withholding tax on dividends, making the system one of the most attractive globally for entrepreneurs and investors. Many search for “low tax business countries” and find Hong Kong at the top of the list.

Business-Friendly Government and Legal System

The company incorporation process is fast and efficient. You can open a company in Hong Kong in as little as one day using online services. The legal system is based on common law, with transparent regulations and strong protection for contracts and intellectual property.

World-Class Infrastructure and Financial Services

Hong Kong ranks high in global logistics, banking, and communication services. Businesses benefit from fast internet, excellent transportation, and access to over 160 licensed banks for opening a business bank account in Hong Kong.

Open Market and Free Trade

Hong Kong is consistently rated one of the freest economies in the world. There are no restrictions on inward or outward investments, and foreigners can start a business in Hong Kong without requiring local partners or directors.

Entrepreneur Visa and Talent Support

The entrepreneur visa in Hong Kong allows foreign business owners to relocate and run their companies locally. The city also offers support programs to attract talent, including schemes for tech and innovation entrepreneurs.

Summary Takeaway

Starting a business in Hong Kong means gaining access to a low-tax, stable, and globally connected economy that supports growth from day one. Whether you're launching a startup or expanding into Asia, the advantages are both practical and proven.

How to Set Up a Company in Hong Kong

Setting up a company in Hong Kong is fast, affordable, and open to both residents and foreigners. With minimal bureaucracy, online registration, and a trusted legal framework, it’s no surprise that many entrepreneurs search for how to start a business in Hong Kong or company formation Hong Kong.

Below is a practical guide covering the entire process—what documents you need, what services to consider, and how long each step typically takes.

Step 1: Choose a Company Type

Most businesses in Hong Kong register as a Private Limited Company, which offers liability protection and is recognized internationally.

Other options include:

• Sole proprietorship

• Partnership

• Branch office (for foreign companies expanding into Hong Kong)

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Step 2: Select a Company Name

The name must be unique and not infringe on existing trademarks. You can search availability via the Companies Registry’s Cyber Search Centre.

Tip: Reserve a name in both English and Traditional Chinese if you plan to serve local and regional clients.

Step 3: Prepare the Required Documents

To complete your Hong Kong business registration, you’ll need:

• A copy of your company’s Articles of Association

• Incorporation Form (NNC1 for a new company)

• Proof of registered office address in Hong Kong

• ID copies of all directors, shareholders, and company secretary

Step 4: File for Incorporation

You can file online through the e-Registry portal or in person at the Companies Registry. Most companies are incorporated within 1–3 business days.

Cost:

• Government fee: HKD 1,720 (electronic)

• Optional: agent fees if using a service provider

Step 5: Obtain a Business Registration Certificate

Once your company is incorporated, you must apply for a Business Registration Certificate with the Inland Revenue Department. This is usually processed along with incorporation.

Note: The certificate must be renewed yearly (or every 3 years if selected).

Step 6: Set Up a Business Bank Account

After incorporation, open a business bank account in Hong Kong to start receiving payments and managing cash flow. Most banks require:

• Business registration certificate

• Incorporation documents

• Proof of business activity (like a website or contracts)

• Passport or HKID of directors/shareholders

Popular options include HSBC, Standard Chartered, ZA Bank (digital), and Neat.

Step 7: Register for Taxes and Apply for Relevant Licenses

Depending on your industry, you may need a specific business license in Hong Kong (e.g., for retail, food & beverage, or import/export).

You should also:

• File a notice of commencement of business

• Register with the Inland Revenue Department for profits tax

• Set up accounting records from day one for future auditing

Step 8: Consider Using a Professional Agency

If you're overseas or unfamiliar with Hong Kong regulations, many entrepreneurs use a company formation service to handle paperwork, filings, and compliance.

Look for services that include:

• Registered office address

• Company secretary

• Annual return filing

• Tax and audit support

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Summary Takeaway

Starting a business in Hong Kong is a structured process, but it’s far from difficult. With the right documents and support, you can set up your company in under a week and gain access to Asia’s most efficient business environment.

Government Support and Grants for Businesses

Hong Kong offers a wide range of financial incentives and support schemes to help startups and small businesses grow. Whether you’re developing technology, expanding into overseas markets, or strengthening your brand, there are dedicated programs that provide funding, advice, and practical tools.

If you’ve searched for “business grants Hong Kong,” “SME funding Hong Kong,” or “government support for startups in Hong Kong,” this section outlines the most relevant schemes you should explore in 2025.

SME Export Marketing Fund (EMF)

The Export Marketing Fund helps small and medium enterprises (SMEs) promote their products and services in international markets. It covers up to 50% of eligible expenses, including trade fairs, online promotions, and business missions.

Use case: A Hong Kong fashion startup can claim subsidies for booth fees and travel costs when showcasing collections at overseas exhibitions.

• Maximum funding: HKD 800,000 per company

• Eligible industries: Most sectors except for purely local retail or catering

• Administered by: Trade and Industry Department

Technology Voucher Programme (TVP)

The TVP supports companies that want to adopt technology solutions to improve productivity or upgrade operations. Eligible projects include purchasing business software, hardware, and even developing custom platforms.

Use case: A logistics company implements a route optimization system and applies for funding to cover 75% of the cost.

• Maximum funding: HKD 600,000 per applicant

• Company pays at least 25% of the cost

• Requires a local business registration and operation in Hong Kong

BUD Fund (Branding, Upgrading and Domestic Sales)

The BUD Fund helps Hong Kong businesses expand into Mainland China and other free trade agreement (FTA) markets. It supports branding efforts, product upgrades, and market expansion initiatives.

Use case: A skincare brand receives funding to repackage products and launch an eCommerce site targeting Southeast Asia.

• Maximum funding: HKD 7 million (cumulative cap across all markets)

• Covers up to 50% of each approved project

• Must have substantive business operations in Hong Kong

Innovation and Technology Fund (ITF)

Targeting R&D-intensive companies, the Innovation and Technology Fund supports the development and application of new technologies. It caters mainly to startups and SMEs involved in biotech, fintech, AI, or advanced manufacturing.

Use case: A startup building an AI-powered inventory system secures funding to support its product development and testing.

• Schemes include the Enterprise Support Scheme (ESS) and the Partnership Research Programme (PRP)

• Funding ranges from partial to full project cost depending on program

Other Financial Support Measures

Aside from grants, the Hong Kong government also provides:

• SME Loan Guarantee Scheme: Helps SMEs secure loans with government-backed guarantees

• Dedicated Fund on Branding and Upgrading (Mainland & FTA markets): Similar to BUD but focused on region-specific development

• Re-industrialisation Funding Scheme: Supports smart production lines and advanced manufacturing facilities in Hong Kong

These programs make Hong Kong SME support both accessible and results-driven, giving entrepreneurs more room to innovate, expand, and stabilize their businesses.

Summary Takeaway

The Hong Kong government actively supports business development across sectors and stages of growth. From startup funding to export subsidies and R&D grants, these programs lower financial barriers and give SMEs the backing they need to grow with confidence.

Essential Services for Hong Kong Businesses

Setting up your company is only the first step. To operate smoothly and stay compliant, every business in Hong Kong—whether a startup or a multinational—needs a few critical support services. These include everything from accounting and banking to flexible workspaces and professional communication tools.

This section outlines the key business services in Hong Kong that new entrepreneurs commonly need, helping you make informed choices and avoid costly missteps.

Accounting and Audit Services

Every company incorporated in Hong Kong is required to maintain proper financial records and file annual audited accounts. Whether you're just starting or scaling up, having a reliable accountant ensures that you stay compliant with Hong Kong’s tax and audit requirements.

Why it's essential:

• You must file annual Profits Tax Returns with audited financial statements.

• Businesses with turnover over HKD 2 million must appoint a certified public accountant (CPA).

• A good accountant can also help with profit tax planning and IRD queries.

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Virtual Office Services

If you're a foreign entrepreneur or running a lean team, a virtual office in Hong Kong allows you to establish a legal business presence without renting physical space.

What’s included:

• Registered business address (a legal requirement)

• Mail handling and forwarding

• Optional call answering services

Use case: A foreign consultant operating remotely uses a virtual office address to register a company and receive government documents in Hong Kong.

Business Bank Accounts

Opening a business bank account in Hong Kong is critical for day-to-day operations. Although requirements have become more strict, many banks and digital financial platforms now cater to small businesses and startups.

Common requirements:

• Company incorporation documents

• Business registration certificate

• Proof of business activity (website, contracts, invoices)

• ID and address proof for all directors and shareholders

Popular options:

• Traditional banks: HSBC, Hang Seng, Bank of China

• Digital banks/alternatives: ZA Bank, Currenxie, Airwallex, Statrys

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Coworking and Flexible Office Spaces

Coworking spaces in Hong Kong offer more than just a desk—they provide a professional work environment, community access, and event networking opportunities.

Why many startups choose coworking:

• No long-term lease commitment

• Meeting rooms and printing services

• Fast setup and scalability

Top providers:

• The Hive, WeWork, The Executive Centre, Garage Society

Use case: A fintech startup launches in Sheung Wan using a coworking space with investor meeting rooms and high-speed internet.

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HR and Recruitment Services

Hiring the right people in Hong Kong involves navigating employment contracts, MPF contributions, and labor laws. Many businesses partner with HR service providers or PEO (Professional Employer Organizations) to outsource payroll and compliance.

Benefits:

• Simplifies onboarding and salary administration

• Ensures compliance with local employment law

• Reduces risk for companies without in-house HR teams

Summary Takeaway

Whether you're opening a retail store or launching a digital-first startup, Hong Kong’s support services can help your business function smoothly and grow with confidence. From virtual offices and bank accounts to accounting and HR, investing in the right infrastructure early can save time, avoid penalties, and help you scale faster.

Compliance and Tax Requirements in Hong Kong

Once your company is set up, staying compliant with Hong Kong’s regulations is not optional—it’s critical. Missing deadlines or failing to file correctly can lead to penalties, legal issues, or the suspension of your business operations.

In this section, we’ll cover the most important compliance and tax obligations every company must meet after registration. These requirements apply whether you run a small consultancy, an eCommerce brand, or a regional office.

Annual Filing Obligations

Every limited company in Hong Kong is required to submit an Annual Return (Form NAR1) to the Companies Registry. This document confirms the company’s structure, directors, and registered office details.

Key points:

• Due: Within 42 days of the anniversary of incorporation

• Fee: HKD 105 if filed on time

• Late filings incur escalating penalties

In addition, you must renew your Business Registration Certificate annually or once every three years, depending on your selection during incorporation.

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Profits Tax Filing

Hong Kong operates on a territorial source principle, meaning only income sourced from within Hong Kong is taxable. The Profits Tax Return (PTR) is issued annually by the Inland Revenue Department (IRD).

Details:

• Tax rate: 8.25% on first HKD 2 million; 16.5% beyond that

• First PTR is issued 18 months after incorporation

• Accompanied by audited financial statements

• Due: Generally within one month from issuance

If your company has no income or hasn’t started operations, you still need to file a NIL return.

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Audit and Accounting Requirements

Every company must maintain proper books of accounts and appoint a Certified Public Accountant (CPA) to audit annual financial statements.

Applies to:

• All private limited companies, regardless of size

• Companies with revenue under HKD 2 million may still require audits for bank loans, investor reports, or due diligence

Tip: Choose an accounting firm that can also help you with filing profits tax and complying with IRD guidelines.

Employer Obligations (if hiring staff)

If your business has employees in Hong Kong, you must:

• Enroll them in the Mandatory Provident Fund (MPF)

• Submit Employer’s Return (Form IR56B) each tax year

• Provide payslips and keep payroll records for at least 7 years

Note: MPF contributions are split 5% employer / 5% employee, up to a monthly cap.

Business Licenses and Permits

Depending on your industry, you may need a special business license in Hong Kong to operate legally. Common sectors requiring licenses include:

• Restaurants and food services

• Retailers selling tobacco, alcohol, or cosmetics

• Import/export businesses

• Travel agencies

• Education or childcare services

Always verify with the Hong Kong Business Licence Information Service (BLIS) to see if your business type is regulated.

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Ongoing Compliance Best Practices

• Keep statutory records up to date (directors, shareholders, address)

• Retain all invoices, receipts, and contracts for at least 7 years

• File Employer's Return and Profits Tax Return annually, even if your company is dormant

• Use licensed professionals for accounting and audit services

Summary Takeaway

Compliance in Hong Kong isn’t overly complicated, but it is consistent. Meeting annual filing requirements, maintaining proper tax compliance, and staying on top of business license renewals is essential for long-term success. With reliable advisors and timely action, you can focus on growing your company—not fixing legal issues later.

Support for Foreign Entrepreneurs in Hong Kong

Hong Kong has long welcomed international entrepreneurs. With no restrictions on foreign ownership, straightforward company formation, and an open banking and legal system, it remains one of the easiest places in Asia to launch and operate a business—even if you're not a local resident.

If you’re researching how to start a business in Hong Kong as a foreigner or exploring entrepreneur visa options, this section highlights the key resources, structures, and programs available to you.

100% Foreign Ownership Allowed

Unlike some jurisdictions that require a local partner, Hong Kong allows full foreign ownership of companies. You don’t need to be a citizen, resident, or have a local director to register a business.

Why it matters:

• You control all equity, operations, and decision-making

• You can run the business from overseas or relocate

• There are no capital restrictions or currency controls

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Business Structures for Non-Residents

Foreign entrepreneurs can set up:

• Private Limited Companies (most popular and flexible)

• Branch Offices (for expanding overseas companies)

• Representative Offices (non-commercial setup for research or sourcing)

Most choose a Private Limited Company, which offers tax benefits, credibility, and limited liability.

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Entrepreneur Visa Scheme (Start-up or Investment Visa)

Hong Kong offers visa pathways for foreign founders through the Entry for Investment Scheme or the Start-up Visa under the Technology Talent Admission Scheme (TechTAS).

Entry for Investment Visa (general business)

• Requires a solid business plan and proof of sufficient capital

• You must demonstrate potential to contribute to Hong Kong’s economy (e.g. hiring locals, renting office space)

Start-up Visa under TechTAS

• Targeted at tech companies endorsed by a government-recognized incubator

• Faster processing and support for innovative businesses

Use case: A European founder launches a fintech platform backed by a local incubator and applies under the Start-up Visa scheme to move to Hong Kong full time.

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Incubators and Startup Hubs

Hong Kong offers government-backed incubators and co-working hubs that help foreign founders network, access funding, and navigate regulations.

Top resources:

• Cyberport: Focused on fintech and digital startups

• Hong Kong Science and Technology Parks (HKSTP): Supports biotech, AI, robotics, and more

• InvestHK StartmeupHK: Connects foreign entrepreneurs with legal, tax, and marketing advice

These programs often assist with visa sponsorship, early-stage funding, and business matching opportunities.

Multilingual, Business-Friendly Ecosystem

Hong Kong’s official languages are English and Chinese, and most service providers—from law firms to accountants—operate fluently in both. Contracts, government forms, and company filings are all available in English.

Why this helps:

• Foreigners don’t need translators or intermediaries for legal or financial matters

• Business is conducted using familiar international standards

• It minimizes cultural or administrative barriers

Banking and Professional Support

Foreign founders can open a business bank account in Hong Kong, though requirements vary by bank. Some digital banks and financial platforms now cater to non-residents with faster onboarding.

You can also outsource local functions like:

• Company secretary services

• Tax filing and accounting

• Virtual office setups

These services make it easy to manage operations even without a permanent Hong Kong presence.

Summary Takeaway

Whether you're launching an online business or expanding a global brand, Hong Kong makes it easy for foreign entrepreneurs to get started. With open ownership laws, startup visas, incubators, and professional support, it’s a powerful base for growth across Asia.

Frequently Asked Questions About Doing Business in Hong Kong

When planning to start or expand a business in Hong Kong, it’s natural to have questions. Below, we’ve answered some of the most commonly searched queries—especially by foreign entrepreneurs, startups, and small business owners—using clear, fact-based responses.

Can a Foreigner Open a Company in Hong Kong?

Yes. Foreigners can register a private limited company in Hong Kong without any local ownership. There’s no residency requirement for directors or shareholders, and the process can be done entirely online.

To get started, you’ll need:

• A company name

• A local registered address

• One director (can be the owner)

• A company secretary (can be outsourced)

• HKD 1 in minimum capital

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How Long Does It Take to Register a Company?

If all documents are ready, a company can be incorporated within 1–3 business days using the online portal. If you’re using a service provider, they may handle document preparation and filing on your behalf.

What Are the Costs of Starting a Business in Hong Kong?

Costs vary depending on whether you do it yourself or hire a formation agency. Here’s a rough breakdown:

• Government incorporation fee: HKD 1,720

• Business registration certificate: HKD 250–2,250 (1 to 3 years)

• Company secretary and registered address services: HKD 1,500–5,000/year (optional but common)

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Do I Need a Visa to Run a Business in Hong Kong?

You can incorporate a business from overseas without a visa. However, if you want to live in Hong Kong and actively run the business, you’ll need an Investment Visa or Entrepreneur Visa. Approval depends on your business plan, financial resources, and local hiring potential.

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What Kind of Government Support Is Available for Startups?

Hong Kong offers SME grants, startup funding, and R&D incentives through programs like:

• Technology Voucher Programme (TVP)

• BUD Fund

• SME Export Marketing Fund

• Cyberport and HKSTP incubators

These programs are available to both local and foreign-owned companies.

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Is Hong Kong Still a Good Place for Small Business in 2025?

Yes. Despite global economic shifts, Hong Kong remains a top destination for SMEs due to:

• Low and transparent tax rates

• Simple incorporation process

• No restrictions on foreign ownership

• Stable legal and financial systems

• Strong international banking infrastructure

Related keyword: SME in Hong Kong, small business in Hong Kong

Do I Need a Local Partner or Office?

No local partner is needed. You do need a registered office address in Hong Kong, but this can be a virtual officeprovided by a company formation agent or coworking space.

Keywords covered: virtual office Hong Kong, business services Hong Kong

What Taxes Do I Need to Pay?

Hong Kong companies pay Profits Tax on income sourced within Hong Kong. The rates are:

• 8.25% on the first HKD 2 million in profits

• 16.5% on anything above

There is no VAT, no capital gains tax, and no withholding tax on dividends.

Search alignment: tax compliance Hong Kong, Hong Kong business laws

Summary Takeaway

Whether you’re just starting your research or preparing to launch, understanding the practical side of doing business in Hong Kong helps avoid surprises. The city’s low barriers to entry, support for foreign founders, and streamlined compliance make it one of the most founder-friendly locations in Asia.