Nikita Veremeev
31.07.2025 | 6 min read
Updated: 31.07.2025
In 2025, Hong Kong continues to maintain its position as one of the most influential international financial centers. According to The Global Financial Centres Index, Hong Kong consistently ranks in the top 5 global jurisdictions for investment attractiveness, regulatory environment transparency, and financial stability. In less than two decades, the volume of foreign direct investment in Hong Kong has increased 3.5 times, and the number of new incorporated companies has exceeded 1.4 million, a clear indicator of trust from the global business community.
So why do entrepreneurs from Europe, Asia, and the CIS massively choose to register a company in Hong Kong? The key advantages are clear:
- Free trade and absence of currency control: Hong Kong is a free port with no restrictions on capital movement, providing maximum flexibility for international settlements and multi-currency operations.
- Strategic location: Geographically, Hong Kong is the ideal entry point to the Southeast Asian markets and Mainland China. Thanks to integration into regional trade-economic alliances, a company in Hong Kong gains barrier-free access to major Asian markets.
- Global business integration: Hong Kong is a recognized international financial center, home to the largest global banks, funds, and payment systems. This ensures fast entry to global markets and easy integration into international holding structures.
- Absence of VAT and customs duties: No VAT or customs fees are levied on the import and export of goods through Hong Kong, significantly reducing costs for exporters and importers.
COREDO’s practice confirms: these factors become decisive for clients seeking sustainable business development and risk diversification on an international level.
# Why starting a business in Hong Kong is profitable for exports and international operations
Considering Hong Kong as a foothold for exporting to China and APEC countries, it is important to take into account its unique role in the global economy. Hong Kong is not only the “gateway to China” but also a free trade center with access to over 30 international free trade agreements.
For companies focused on export, registering a business in Hong Kong allows:
- Minimizing logistics and customs clearance costs thanks to its free port status.
- Utilizing international payment systems for instant settlements with partners worldwide.
- Conducting multi-currency transactions without restrictions and additional conversion costs.
- Participating in regional trade-economic alliances, facilitating access to Southeast Asian markets.
The COREDO team has implemented dozens of projects on integrating Hong Kong companies into holding structures, allowing our clients to optimize supply chains, reduce tax burdens, and enhance the transparency of international operations.
Hong Kong’s tax system and preferential taxation for foreign companies
# Territorial taxation principle and tax rates
One of the key reasons why registration of a company in Hong Kong is so in demand: the unique tax system based on the territorial principle. This means that only profits sourced from Hong Kong are taxable. Income from overseas operations is not taxed if the company can confirm their foreign origin.
| Indicator | Hong Kong | Singapore | Cyprus |
|---|---|---|---|
| Corporate tax rate | 8.25% / 16.5% | 17% | 12.5% |
| VAT | Absent | 8% | 19% |
| Customs duties | No | No | Yes |
| Currency control | No | No | No |
| Territorial taxation principle | Yes | Yes | No |
| Double tax avoidance agreements | 45+ | 90+ | 60+ |
For foreign companies, the following aspects are especially relevant:
- Preferential taxation for non-residents: Profits from operations outside Hong Kong can be fully exempt from corporate tax.
- Absence of VAT and customs duties: This reduces operating costs for companies engaged in international trade.
- A network of double tax avoidance agreements (DTA): Over 45 agreements allow for tax optimization when dealing with foreign counterparts.
The solution developed at COREDO allows clients to build effective international tax planning schemes using the advantages of Hong Kong jurisdiction.
# How to optimize taxation through a Hong Kong company
COREDO’s experience has shown that taxation optimization through a company in Hong Kong is possible thanks to a combination of territorial principle, absence of currency control, and flexible economic substance requirements. For companies working with foreign clients, key tools include:
- Structuring deals through an offshore in Hong Kong for tax benefits.
- Using automatic exchange of tax information (CRS) to ensure transparency and compliance with international standards.
- Implementing financial monitoring systems to control economic substance and confirm income sources.
COREDO’s practice confirms: competent tax planning not only reduces fiscal risks but also increases the investment appeal of a business for international partners.
Legal support in Hong Kong: corporate law, compliance and AML
# Corporate law of Hong Kong and asset protection
Hong Kong corporate law is based on the principles of the British legal system, ensuring predictability, transparency, and a high level of property rights protection.
For foreign investors, this means:
- Flexibility of corporate structure: The ability to use nominee service (nominee directors and shareholders), establish holding companies and manage assets remotely.
- Transparency of the regulatory environment: All changes in company structure and beneficiary data are recorded in open registers, increasing trust from banks and partners.
- Asset protection: Hong Kong’s legislation effectively protects property rights, and its judicial system is considered one of the most independent in Asia.
The COREDO team has repeatedly supported asset restructuring projects and integration of Hong Kong companies into international holding structures, allowing our clients to minimize legal risks and ensure long-term investment security.
# Compliance and AML in Hong Kong: requirements and best practices
In recent years, requirements for AML and compliance in Hong Kong have significantly tightened, related to global trends in combating money laundering and terrorist financing (FATF).
For new companies, this means the need for:
- Pursuing strict KYC/AML procedures during registration and opening of bank accounts.
- Conducting regular due diligence on beneficiaries, shareholders, and business partners.
- Implementing internal compliance control policies and financial monitoring.
COREDO’s completed projects show: timely implementation of best AML and compliance practices allows not only to avoid fines and account blocks but also increase corporate transparency, which is critically important for working with international banks and investors.
Registration and incorporation procedure in Hong Kong: step-by-step guide 2025
# How to register a company in Hong Kong remotely
In 2025, the incorporation procedure in Hong Kong has become highly digitized. Remote company registration in Hong Kong is possible for non-residents, which is especially relevant for entrepreneurs from Europe and the CIS.
Main stages:
- Selection of corporate structure: Private Limited Company, the most popular form for international business.
- Preparation of incorporation documents: Charter, information about directors, shareholders, and beneficiaries.
- Appointment of a corporate secretary: A mandatory requirement for all companies.
- Application submission through the electronic Companies Registry portal: The entire procedure takes 1-3 business days.
- Using nominee service (if necessary): To ensure confidentiality and management of the corporate structure.
- Opening a corporate account: After obtaining the certificate of incorporation.
COREDO solutions enable clients to complete all stages remotely, including electronic document submission, beneficiary identification, and remote company management.
# Cost, timeframes, and registration features for non-residents
The cost of incorporating a company in Hong Kong for non-residents remains among the most competitive in the region.
On average, registration and legal support expenses range from 1,500 to 3,000 USD, including corporate secretary services and the preparation of all necessary documents. Registration timeframes are from 1 to 5 business days.
Features for non-residents:
- Business immigration opportunity through Hong Kong upon meeting certain economic substance requirements.
- Licensing of certain activities: Financial, insurance, crypto, and payment services require obtaining special licenses.
- Flexibility of remote management: All corporate procedures can be implemented remotely, including holding meetings and signing documents.
Opening a bank account and financial support for a Hong Kong company
# How to open a Hong Kong bank account for a non-resident
opening a bank account in Hong Kong for non-residents requires careful preparation for KYC/AML procedures.
The bank requests:
- Incorporation documents of the company.
- Confirmation of ownership structure and beneficiaries.
- Business plan and description of income sources.
- Recommendations from partner banks (desirable).
The financial stability of Hong Kong and its developed network of international payment systems allow using multi-currency accounts, conducting international payments, and integrating the company into global settlement chains. COREDO’s practice shows: with proper document preparation and transparency of structure, an account is opened within 2-4 weeks.
# Financial reporting and audit: requirements for foreign companies
Companies in Hong Kong are required to annually submit financial reports and undergo an audit, regardless of the volume of operations.
Key requirements:
- Corporate reporting must comply with international standards (IFRS).
- Economic substance: It is necessary to confirm the reality of the business and the presence of business activity.
- Features of bookkeeping: For companies with foreign capital, it is important to consider disclosure requirements of information on beneficiaries and ownership structure.
COREDO supports clients at all stages of report preparation, ensuring compliance with local and international standards.
Support programs for startups and small businesses in Hong Kong
# Startup ecosystem and access to venture capital
Hong Kong is one of Asia’s leading startup hubs. Here, programs for supporting small and medium-sized businesses, accelerators, venture funds, and government grants are actively developing.
Hong Kong’s startup ecosystem provides:
- Access to venture capital and investment platforms.
- Information and mentorship support for new projects.
- Integration into international business communities and strategic partnerships with China.
COREDO’s experience shows: participating in acceleration programs and government grants allows startups to quickly scale and enter new markets.
# How to access support programs and grants
To access startup support programs in Hong Kong, it is necessary:
- Register a company and confirm economic substance.
- Prepare a business plan and apply for a program.
- Pass selection into an accelerator or incubator.
COREDO assists clients at all stages – from document preparation to supporting negotiations with investors and government funds.
Risks and limitations of doing business in Hong Kong for foreign companies
# Legal and tax risks for international companies
Despite obvious advantages, registering a company in Hong Kong is associated with several legal and tax risks:
- Automatic exchange of tax information (CRS): Companies are required to disclose information about beneficiaries and income sources.
- Tightening of compliance and AML controls: Banks and regulators thoroughly check ownership structure and business activities.
- Financial monitoring: Any suspicious transactions may lead to account freezing.
COREDO’s practice confirms: timely implementation of internal policies on risk management and transparency minimizes negative consequences.
# How to ensure activity transparency and business protection
To ensure corporate transparency and protect business in Hong Kong, it is important to:
- Implement best compliance practices and conduct regular due diligence.
- Use nominee service and corporate secretary to manage the structure.
- Protect intellectual property and assets through registration of rights and implementation of internal control procedures.
COREDO supports clients in matters of business protection, corporate transparency, and legal risk management.
Practical steps and recommendations for registering and conducting business in Hong Kong
# Checklist for company registration and account opening
- Determine legal structure and corporate model.
- Prepare a package of incorporation documents.
- Appoint a corporate secretary and, if necessary, use nominee service.
- Undergo due diligence and KYC procedure.
- Submit registration application through the electronic portal.
- Open a bank account, providing justification of business model and income sources.
- Organize bookkeeping and corporate reporting.
- Implement internal compliance and AML control policies.
# Key findings and actionable advice for entrepreneurs
- Tax optimization: Use the territorial taxation principle to minimize tax burden.
- Risk minimization: Implement modern compliance and financial monitoring tools.
- Choosing a legal partner: Entrust comprehensive legal support to experts with international experience.
COREDO’s practice shows: a systematic approach to registration and business support in Hong Kong not only reduces costs but also creates a sustainable platform for scaling in Asian and global markets.
Frequently Asked Questions (FAQ) about registration and conducting business in Hong Kong
how to register a company in Hong Kong remotely?
The entire procedure is conducted through the electronic Companies Registry portal, documents are submitted online, and beneficiary identification is done remotely.
The entire procedure is conducted through the electronic Companies Registry portal, documents are submitted online, and beneficiary identification is done remotely.
What taxes does a company in Hong Kong pay when working with foreign clients?
Profit earned outside Hong Kong is not taxed. Domestic profit is taxed at a rate of 8.25%/16.5%.
Profit earned outside Hong Kong is not taxed. Domestic profit is taxed at a rate of 8.25%/16.5%.
How to open a bank account for a Hong Kong company for a non-resident?
You’ll need to prepare incorporation documents, disclose ownership structure, undergo KYC/AML procedures, and justify the business model.
You’ll need to prepare incorporation documents, disclose ownership structure, undergo KYC/AML procedures, and justify the business model.
What compliance and AML risks exist for foreign company owners?
Main risks are related to automatic exchange of tax information, tightening KYC/AML procedures, and financial monitoring.
Main risks are related to automatic exchange of tax information, tightening KYC/AML procedures, and financial monitoring.
How to choose a legal structure for business in Hong Kong?
The most popular form is Private Limited Company, providing flexibility, asset protection, and the ability to integrate into international holding structures.
The most popular form is Private Limited Company, providing flexibility, asset protection, and the ability to integrate into international holding structures.
What are the requirements for corporate reporting and audit?
Annual financial reporting and mandatory audit according to IFRS standards regardless of the volume of operations.
Annual financial reporting and mandatory audit according to IFRS standards regardless of the volume of operations.
What support programs are available for startups and small businesses?
Government grants, accelerators, venture funds, and mentorship programs are available for new companies registered in Hong Kong.
Government grants, accelerators, venture funds, and mentorship programs are available for new companies registered in Hong Kong.
What are the timeframes and costs of incorporation for non-residents?
Timeframes range from 1 to 5 days, cost from 1,500 USD, including corporate secretary services and document preparation.
Timeframes range from 1 to 5 days, cost from 1,500 USD, including corporate secretary services and document preparation.
How to integrate a Hong Kong company into an international holding structure?
Possible through the creation of holding companies, using nominee service, and structuring asset ownership considering international tax agreements.
Possible through the creation of holding companies, using nominee service, and structuring asset ownership considering international tax agreements.
How to ensure the protection of intellectual property?
Registration of trademarks and patents, implementation of internal control procedures, and legal support at all stages.
Registration of trademarks and patents, implementation of internal control procedures, and legal support at all stages.
COREDO: your strategic partner for building international business through Hong Kong. Our experience and expertise allow us to solve the most complex tasks, ensuring transparency, safety, and sustainable growth of your business in Asia and beyond.