How to Set up a Real Estate Company in Hong Kong

Hong Kong is one of the very densely populated metro areas. It is a magnet for both investors and aspiring entrepreneurs. And with its strong economy and ever-growing real estate market, it's no wonder many are drawn to the idea of establishing a real estate company here.

But where do you begin? This comprehensive guide will walk you through everything you need to know, from registering your business to navigating the legalities to finally opening your doors and making your mark on Hong Kong's dynamic real estate landscape.

Why Hong Kong is Great for Real Estate

• Thriving Market: Hong Kong boasts a strong and ever-growing real estate market, offering opportunities for investors and entrepreneurs to not only make money, but also save homes and preserve the character of neighborhoods.
• High Demand: With limited land and a large population, demand for real estate in Hong Kong consistently outpaces supply, potentially leading to lucrative investments.
• Strategic Location: Hong Kong's position as a global financial hub attracts a significant number of professionals and businesses, further fueling demand for housing and commercial properties.
• Business-Friendly Environment: Hong Kong offers a competitive corporate tax rate, minimal government intervention, and a lack of sales tax, creating a cost-effective environment for businesses, particularly those in real estate.

In addition, there is a lot of capital in Hong Kong and low interest rates for loans.  

Favorable Taxes

Taxes in Hong Kong are some of the most neighborhood and business-friendly in the world, so you'll be able to enjoy a range of money-saving policies in real estate.

Taxes in Hong Kong:  

• 8.25% for the first $2 million in profits (Hong Kong Dollar) 
• 16.5% on all additional profits
• You only pay taxes on money made within the borders of Hong Kong (single-tiered system)
• Personal taxes are low (2% -17%)
• No sales tax
• No capital gains tax
• No withholding tax

So what does it take to get into the real estate business in Hong Kong?

Overview of Real Estate in Hong Kong

First of all, it is essential to know that the state controls all the land in Hong Kong, so there are more government regulations and licenses than one might find in other countries.

That does not mean it's necessarily more difficult to work in real estate, but you do have to pay close attention to the laws and their evolution. 

If you're a foreigner, there are actually no restrictions on ownership.

However, all investors have to follow the rules closely.

Of course, you'll be starting your real estate business on land where rental prices can rival those of the most expensive cities in the world!

There are more than seven million people living in a very small area, so the city has a very high population density. 

A recent report showed that the city has the highest average house price on the planet, at over 1.2 million USD per home.

First Steps to Starting a Real Estate Company in Hong Kong

Hong Kong, like Singapore, is a free economy.

It's also known for its non-interventionist regulatory stance.

So creating your company is faster and easier than in most other countries.

First, visit and get to know the Companies Registry in Hong Kong.

This government site—most accurately, for the Government of the Hong Kong Special Administrative Region—not only has all you need to get started, but it will also have the latest rules and regulations for businesses.

The first steps will be:

• Choose a name for your brand new company. One interesting regulation about business names from Hong Kong's government: “A company may be registered with an English name, a Chinese name, or an English name and a Chinese name. A company name with a combination of English words/letters and Chinese characters is not allowed.”
•  Show ID, proof of residence, and fill out the application (whether your business has shareholders or is a single owner).
• Download your Certificate of Incorporation and Business Registration Certificate. You can get these from the website sometimes in just an hour! 
• Finally, you'll need to secure any permits or licenses required specifically by real estate.

Real Estate Agency or Solo Practice?

Are you looking to open an agency or work as a solo real estate agent? Well, then, the search is over.

Either way, you'll need to set up a company. 

You must have a Hong Kong estate agent license if you are:

• The sole owner/employee of a real estate business 
• A company director or partner in a real estate business 
• The manager of any real estate agency

As with the real estate industry in most other countries, you are not legally allowed to operate without a license. 

Once again, Hong Kong makes entry easy.

You can find all of the rules, regulations, and the application for a licence with the Estate Agents Authority in Hong Kong.

Life in Hong Kong Real Estate

No matter what, you'll be busy. Demand is high in the Fragrant Harbor and doesn't look to go down anytime soon.

Salaries for real estate agents vary depending on experience.

An average new agent earns over $30,000 USD/year, while agents with over eight years of experience earn closer to an average of $70,000 USD.

The events of last year undoubtedly affected the Hong Kong real estate market and the rest of the world.

But with this much demand, the sector is bound to bounce back.

Hong Kong will remain a great place for real estate agents, both veteran and new, to work, sell, or purchase. 

Registering yourself as a real estate agent now will put you in a position to help as many clients as possible!

Registering a real estate company in Hong Kong is also easier with Air Corporate.

Register your business with Air Corporate today, and you'll get guidance, tools, and guarantees that will help your business start off on the right track.