Company formation
How much does it cost to set up a Hong Kong limited company?
Government fees are HK$3,895 (NNC1 HK$1,545 plus business registration HK$2,350). Our all-in service fee is HK$2,650 including three company chops, Articles of Association, statutory books and the Significant Controllers Register.
How long does incorporation take?
Electronic incorporation is usually approved within one to two working days once complete identity documents are provided.
Can a non-resident own and run the company?
Yes. There is no residency or nationality requirement for directors or shareholders. You will still need a Hong Kong registered office and a qualifying company secretary.
Do I need a Hong Kong bank account?
Not legally, but in practice you need one to trade. Banks run their own due diligence and may ask for a business plan, customer contracts and proof of substance.
Company secretary and annual return
Must I appoint a company secretary?
Yes. Section 474 of the Companies Ordinance requires one. A sole director cannot also be the company secretary.
When is the Annual Return due?
Within 42 days after the anniversary of incorporation. The filing fee is HK$105 on time, rising to HK$3,480 if more than nine months late.
What is the Significant Controllers Register?
A register of the people who ultimately control the company, kept at the registered office and produced to law enforcement on demand. It is mandatory for all non-listed Hong Kong companies.
Bookkeeping and audit
How long must I keep records?
Seven years — under section 373 of the Companies Ordinance and section 51C of the Inland Revenue Ordinance. Failure without reasonable excuse carries a fine of up to HK$100,000.
My company did not trade. Do I still need an audit?
Yes, unless a special resolution has been passed and filed making the company dormant under section 447. Otherwise a statutory audit is required for every financial year.
Why do audit quotes vary so much?
Audit fees reflect professional hours, which depend on turnover, transaction volume and — most of all — how complete your records are. A large part of a low-volume audit fee is time spent tidying up. See how audit fees are calculated.
Who can sign a Hong Kong audit report?
Only a practising CPA, CPA firm or corporate practice holding a valid practising certificate from the AFRC. Verify before you engage — see choosing a licensed auditor.
Profits tax
What are the profits tax rates?
Corporations: 8.25% on the first HK$2 million of assessable profits, 16.5% on the balance. Unincorporated businesses: 7.5% and 15%. Only one entity in a group of connected entities may elect the two-tiered rates each year.
When is the profits tax return due?
Returns are usually issued in the first week of April and due within one month, extended under the block extension scheme according to your accounting date. A first return is generally not extendable.
My profits are all from overseas customers. Are they offshore?
Not automatically. Source depends on where the profit-producing operations were carried out, not where customers are. See offshore income exemption.
What happens if I file late?
Section 80(2) allows a fine up to HK$10,000 plus treble the tax undercharged; section 82A allows additional tax up to treble the undercharge. Late payment attracts a 5% surcharge, rising by a further 10% after six months.
Employment
When must I enrol staff in MPF?
Within 60 days of the start of employment, for employees aged 18 to 64 employed for 60 days or more.
Do I need employees' compensation insurance?
Yes — it is compulsory before your first employee starts work.
Still have a question? Call 3687-1127, WhatsApp 9700-6312, or send us the details.