Are you interested in registering an eCommerce business in Hong Kong? This guide outlines everything you need to know to get started!
What Is an eCommerce Business?
An eCommerce business involves buying and selling goods or services online. Unlike traditional retail, it doesn’t require a physical storefront, as you can buy and sell all your products and services through your computer, phone, or tablet.
There are three different types of eCommerce businesses:
1. Business to Business (B2B)
A Business-to-Business eCommerce business is one where goods and services are being sold from one business to another.
All transactions are carried out online between the business, making operations more efficient for popular B2B sellers such as manufacturers, distributors, and wholesalers.
2. Business to Consumer (B2C)
B2C eCommerce is the most familiar model, where businesses sell directly to individual consumers through online platforms. It’s known for convenience, fast transactions, and the use of digital marketing to reach a broad audience.
Moreover, consumers are also fond of this model as they can easily make purchases from the comfort of their homes.
3. Consumer to Consumer (C2C)
Lastly, a consumer-to-consumer business is a business model in which third-party companies such as Vinted or Depop enable consumers to sell products to other consumers without any other business participating in the transaction process.
An example of C2C activity would be selling personal items on platforms like Facebook Marketplace.
The Step-By-Step Guide
The general process of starting an online business in Hong Kong involves the following steps:
- Incorporate a company
- Set up a business payment account
- Checking if you need a business license
- Learning about the eCommerce market
- Selecting a marketplace
- Ensure ongoing compliance
Step 1: Incorporate a Company
Start by selecting the right business structure. For eCommerce, the most common and scalable option is a private limited company due to its limited liability and ease of raising capital.
Common Business Structures
- Sole Proprietorship – simple setup, but unlimited personal liability.
- Partnership – shared liability and profit among partners.
- Private Limited Company – a separate legal entity with limited liability for shareholders. Ideal for eCommerce due to credibility and investor appeal.
After choosing the structure:
- Choose a company name (doesn’t have to match your store name).
- Submit incorporation documents to the Hong Kong Companies Registry.
- Receive a Certificate of Incorporation and Business Registration Certificate (typically within 3–5 working days for online submissions).
If you want a more in-depth insight into incorporating a company in Hong Kong, you can read our article on company registration.
Step 2: Set Up a Business Payment Account
Once your company is incorporated, the next priority is setting up a way to send and receive payments. This usually involves opening a business account, either with a traditional bank or a modern virtual alternative.
Multiple licensed money service operators also offer banking services specifically tailored for eCommerce businesses.
Virtual Business Accounts
For eCommerce startups, opening a virtual business account is often the fastest and most flexible option. These accounts are offered by licensed fintech companies or money service operators (e.g., Airwallex, Currenxie, Statrys) and are especially suited for online businesses.
Key benefits:
- Fast setup—often within 1–3 business days
- Support for multi-currency payments
- Easy integration with platforms like Shopify, Stripe, PayPal
- Lower fees for international transfers
This is ideal if you want to start accepting payments quickly, especially from global customers.
Traditional Business Bank Accounts
You can also apply for a business account with a licensed bank in Hong Kong. While more robust, the process can take several weeks and may require a face-to-face meeting.
Common requirements include:
- Certificate of Incorporation
- Business Registration Certificate
- Registered office address in Hong Kong
- Details of shareholders and directors
- A clear business plan and description of your eCommerce model
- Proof of local operations or intended activity in Hong Kong (especially if applying remotely)
Some banks have tightened onboarding requirements for SMEs and foreign-owned businesses, so approval is not guaranteed.
Note: If you don’t yet meet a bank’s full compliance or local activity criteria, starting with a virtual account is a smart move. Many eCommerce businesses later upgrade to traditional banking once they have a trading history or local presence.
Step 3: Check If You Need a Business License
Depending on the nature of the business and the type of goods and services you offer, you will need to apply for a business license before engaging in any business activity.
For example:
- Food and cosmetics require health and safety approvals
- Alcohol requires import/export permits
- Electronics may require specific certifications
Operating without the required license may lead to fines, confiscation of goods, or business suspension.
Step 4: Learn about the eCommerce Market
Once you have successfully incorporated your company, opened a business bank account, and obtained the necessary business license, it is time to learn more about the eCommerce market before getting set up on a marketplace.
This is your chance to thoroughly research and understand the various online platforms available to you, their key features, and the services they offer before making a decision.
eCommerce Platforms
Most eCommerce businesses operate through platforms like Shopify or BigCommerce.
These platforms offer essential tools like:
- Inventory and order management
- Secure payment gateways
- Tax and shipping settings
- Reporting and analytics
- SEO and marketing plugins
Marketplace Alternatives
Alternatively, you can list your products on large marketplaces that already have a customer base, such as:
- HKTVmall (popular in Hong Kong)
- Amazon, Lazada, or Zalora (regional/global reach)
- Facebook Marketplace or Instagram Shops for social commerce
Marketplaces usually charge commissions or fees but reduce the burden of attracting traffic from scratch.
Fulfillment Model
You also need to decide how you’ll manage inventory and delivery:
| Model | Description | Pros | Cons |
|---|---|---|---|
| Warehouse Fulfillment | You store and ship products directly to customers | Full control, better branding | Higher setup cost, inventory risk |
| Dropshipping | Suppliers hold and ship inventory on your behalf | Low overhead, quick to scale | Less control, potential delays |
| 3PL (Third-Party Logistics) | External providers store, pick, pack, and ship your orders | Scalable, saves time | Added cost, dependency on partner |
Step 5: Selecting a Marketplace
After thoroughly researching the eCommerce market, you need to select a marketplace of your choice and get set up there.
This will depend on your eCommerce target audience and distribution strategy.
Once you have the basics sorted out, you need to apply to become a seller on the marketplace you have selected.
During the application process, be prepared to provide your business registration number and your business account number to authenticate your business.
Don’t forget to integrate a payment gateway such as Stripe, PayPal, or AsiaPay so customers can pay you securely. These are widely supported and easy to connect to most ecommerce platforms.
Step 6: Ensure Ongoing Compliance
Similar to traditional companies, an eCommerce business is also subject to annual compliance requirements.
These include filing profit tax returns after the first 18 months of business and filing an employer's return of remuneration and pensions with the Inland Revenue Department of Hong Kong.
Under Hong Kong’s two-tiered tax system, the first HKD 2 million of assessable profits are taxed at 8.25%, and the remainder at 16.5%.
However, if your ecommerce operations generate income outside of Hong Kong, you may be eligible for offshore tax exemption
To meet such requirements, your eCommerce business must maintain business records regularly to ensure the business is compliant and avoid any confusion.
Tips to Start an Ecommerce Business in Hong Kong
Starting an ecommerce business in Hong Kong is straightforward, but success depends on the decisions you make early on.
Here are practical tips to help you avoid common mistakes, stay compliant, and build a business that actually works.
| Tip | What You Need to Know |
|---|---|
| Start lean — but plan ahead | Don’t overspend early. Launch with a minimal setup to test product demand. Focus on cash flow before scaling. |
| Get your paperwork right | Use your registered company name on official documents. Late filing of annual returns can cost from HKD 105 to HKD 3,480, per Companies Ordinance, Cap. 622. |
| Use the right tools | Use platforms like Shopify or WooCommerce. For payments, connect Stripe or PayPal. For finance, try Aspire or Airwallex. |
| Understand local regulations | Stay compliant with product safety and advertising rules. Read our guide on Consumer Protection Regulations in Hong Kong. |
| Build a marketing system early | Set up SEO, email marketing, and paid ads before launch. Don’t wait to build traffic after your store goes live. |
| Manage your time and team | Use tools like Slack, Notion, or Trello. If hiring remotely, set up SOPs. Check our guide on How to Set Up a Remote Workforce in Hong Kong. |
| Keep your finances clean | Open a separate business account. Track all expenses. File tax and compliance documents on time to avoid penalties. |
Final Words
Setting up an eCommerce store in Hong Kong is an easy process that only requires a few simple steps.
However, you need to ensure that you have the right documents and have complied with the necessary regulatory requirements.
Need help registering your business? Register with Air Corporate today, and you'll get approved in under 48 hours.
