Hong Kong is a first class jurisdiction that conveys trust to your clients and suppliers.
Setting up an offshore company in Hong Kong is straightforward. It only takes a few days and can be done online, with no restriction to foreign ownership allowed.
Offshore companies in Hong Kong benefit from low corporate taxes and exemptions on income earned outside Hong Kong.
Planning to set up a business in Hong Kong? This guide will help you understand what an offshore company is, its benefits, and how to easily register one in Hong Kong.
What Is a Hong Kong Offshore Company?
An offshore company refers to a type of company incorporated outside of its original location or origin country with one or more headquarters in a strategic location.
In Hong Kong, offshore companies are often set up by entrepreneurs who wish to promote or run a business in other countries while taking advantage of Hong Kong’s low taxes or the ease of setting up a business in the area.
Why Set Up an Offshore Company In Hong Kong?
- Hong Kong has a flexible and market-style economy with very limited administrative constraints.
- The process of setting up an offshore company in Hong Kong is straightforward.
- Hong Kong has several business-friendly policies in place, in addition to being a strategic location for businesses to thrive.
Benefits of Offshore Company Formation Hong Kong
Hong Kong company setup offers many benefits for entrepreneurs on an international level.
| Benefit | Description |
|---|---|
| Tax Efficiency | Low corporate tax (16.5%) on local profits, no tax on foreign-sourced income, and no VAT, capital gains, or withholding taxes. |
| Ease of Setup | Fast, simple registration process with no physical presence required and low maintenance costs. |
| Global Market Access | Strategic location, no foreign exchange controls, and a robust banking infrastructure support international trade. |
| Strong Legal System | Business-friendly environment with a reliable, common law legal framework. |
| Reputation | Hong Kong companies are internationally respected and have access to tax treaties. |
| Privacy | Shareholders’ details are not publicly disclosed. |
| Efficient Regulation | Minimal bureaucracy and manageable annual reporting. |
How to Incorporate an Offshore Company in Hong Kong
1. Choose a Valid Company Name
Select a name for your company. You can choose between English or Chinese names, or both. Your company’s name shall end with “limited.”
2. Select your Business Structure
You need to choose whether your company will be:
- Limited by Shares: The liability of members is limited to the amount unpaid on their shares, as specified in the articles of association. This structure is common for private limited companies, which offer limited liability and tax benefits.
- Limited by Guarantee: Typically used for non-profit organizations, companies limited by guarantee do not have a share capital, and members’ liability is limited to the amount they agree to contribute if the company is wound up.
3. Appoint Directors
Your company shall have at least 1 director, and at least 1 natural person is required as director. The director(s) can be of any nationality and do not need to reside in Hong Kong.
4. Appoint a Company Secretary
It is mandatory to appoint a local company secretary, either an individual or a corporate body, who must be based in Hong Kong. The role of the company secretary is to ensure that your company meets all statutory deadlines and stays in good standing.
5. Have a Registered Office Address
Your company must have a physical registered office in Hong Kong, which will serve as the official address for receiving documents. A PO box is not allowed. Usually, your company secretary will provide you with a registered address.
6. Prepare and Submit Incorporation Documents
The application for registration of your Hong Kong company must be filed with the Hong Kong Companies Registry. This can be done electronically or physically. The Companies Registry operates as a single point of registration and will take care of enrolling your company with the Inland Revenue Department.
7. Collect your company’s certificates
Once the application is approved, you will receive a Certificate of Incorporation and a Business Registration Certificate from the Inland Revenue Department. This marks the birth of your company.
Register Your Offshore Company With Air Corporate
Hong Kong company registration typically takes up to a week once these steps have been completed.
Need help with offshore company formation in Hong Kong?
Register with Air Corporate and get a registered offshore company approved in under 48 hours.
