7 Reasons Why Companies Register in Hong Kong

May 28, 2021 By Vivian Au


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Every year, Hong Kong attracts hundreds of tourists seeking an enjoyable vacation, but the city is more than a blissful tourist destination.

It is also a top choice for companies seeking to expand overseas as thousands of companies are registered in Hong Kong annually. 

The city attracts individuals, startups, established corporations, and multinationals seeking another location to set up companies for business operations and investment purposes.

Its economy thrives on international trade and investment from foreign companies and foreigners. 

Notably, the database of foreign companies with regional headquarters in Hong Kong has increased significantly over the years and more companies are still interested in registering a subsidiary or affiliate company in Hong Kong. 

The city has undoubtedly gained a reputation as a global business center amongst corporate investors and you may be wondering why companies are attracted to Hong Kong and if the city is actually worth the hype.

Here are 7 reasons why companies register in Hong Kong.

Ease of Registration

One major reason why companies relocate or set up subsidiaries and affiliate companies in other countries is the ease of doing business in those countries.

Businesses thrive in countries where it is easy to start and sustain a business.

Hong Kong has been ranked third in the World Bank’s Ease of Doing Business Index, scoring high points for its easy business formation process, ease of securing electricity connection at business locations, ease of securing construction permits, and a simple tax system.

Apart from the deserved recognition from the World Bank, the region has established investment-friendly policies that encourage investment from foreign companies in several countries across the world. 

Companies love Hong Kong because it’s easy to commence operations in Hong Kong.

Anyone can register a company digitally in Hong Kong within 48 hours and you do not have to be a resident of Hong Kong to do so.

You can register your Hong Kong company online without visiting the city. 

Starting a company in Hong Kong does not require complex or costly procedures and permits.

Also, getting the necessary business licenses is a relatively straightforward process.

There are also government-sponsored initiatives such as Invest HK that support foreign companies seeking to set register a company in the region.

Simple Tax System 

Another incentive for registering companies in different countries is tax.

Lower tax rates mean more profit for the company and most companies are seeking ways to maximize profit.

Hong Kong is considered a tax haven by entrepreneurs and investors and attracts many companies because of its simple tax system.

The corporate tax rate is relatively low and capped at 16.5% which is much lower than what is obtainable in most countries.

Also, offshore companies in Hong Kong are exempted from remitting income taxes.

Companies registered in Hong Kong do not pay taxes on dividends which enables foreign investors to gain maximum returns on their investment.

Sales tax, consumption tax, or value-added tax are also not applicable to companies in Hong Kong. 

There are also no withholding tax, capital gains tax, or estate duties payable in Hong Kong. Also,  import duties are imposed on only a few goods.

As a result of this low corporate tax burden, trading companies are able to maximize profit from their transactions. 

Apart from the low corporate income tax rate and non-applicable taxes in Hong Kong, the ease of computing and complying with tax obligations is another motivation for setting up companies. 

Tax computation is straightforward and companies can also file their tax returns digitally. 

Investment-friendly laws and policies

Companies are often on the lookout for countries with laws and policies in place to protect their investments.

Hong Kong provides a friendly regulatory environment for investors.

The Hong Kong government has established several investment-friendly policies and laws for startups and companies. 

For instance, the laws in Hong Kong permit a foreigner to be the sole shareholder of a company and appoint foreign directors to the company’s board of directors without any repercussions.

Thus, a foreign company can be registered in Hong Kong without appointing Hong Kong residents as directors or co-founders.

The only requirement is that the company secretary must either be an individual resident in Hong Kong or a firm with a TCSP license.

Many foreign organizations prefer to use a digital company secretary to fast-track their incorporation process and effectively manage their business operations. 

Foreigners can also repatriate profit easily without any restrictions and overbearing taxes.

There are also laws that protect innovation and intellectual rights and Hong Kong has an Intellectual Property Department charged with the responsibility of protecting intellectual property rights. 

Finally, there are no restrictions on property rights in Hong Kong as foreigners can acquire properties and rent properties in Hong Kong without any challenges.

Easy access to China and the Asian market

Location is important for business growth and companies are often willing to expand to locations with better growth opportunities, access to better resources, and a ready market.

Hong Kong has won many companies over,  due to its proximity to Mainland China and Asia.

As a result of its strategic location, Hong Kong is the ideal place for organizations seeking to tap into the available resources in China and Asia.

Consequently, the region attracts many trading companies and professional firms that render services needed by trading companies.

Companies also take advantage of the easy formation process to set up digital companies in Hong Kong.

They can handle the company’s operations from anywhere in the world while tapping into the Asian market and talent pool.

Also, companies registered in Hong Kong may be registered as Wholly-Owned Foreign Enterprises in China, which enables foreigners to legally conduct businesses in Mainland China. 

Top-notch banking services

Hong Kong not only boasts of a free economy but also has the right banking infrastructure in place to support its free economy.

The city is home to some fortune 500 banks offering bespoke banking services to Asian companies. 

The impeccable banking services in the region evolved in response to the demand for flexible financial services.

For instance, it is possible to open and operate a multi-currency account for your business in Hong Kong and many foreign companies operate multi-currency bank accounts. 

This makes it easy for companies to receive and make payments in popular currencies like the US Dollars, British Pounds, Australian Dollars, Euros, and the Chinese Yuan.

Also, companies spend less on currency exchange fees. 

This has cemented the country’s position as an international trade hub as companies located in Hong Kong can easily conclude transactions with companies in other countries. 

Hong Kong banks also offer digital banking and barrier-free banking services that make it easy for offshore companies and digital entrepreneurs to conduct transactions remotely.  

State of the art facilities and amenities 

Availability of basic resources, facilities, and amenities is important for any business to thrive in any location.

Companies seeking to relocate or expand to a new destination often consider the available resources and are keen on setting up companies in places with the right amenities for their business needs. 

Fortunately, Hong Kong has great amenities that make business operations easy and cost-effective. 

The country has a world-class transportation infrastructure with a functioning international airport that processes thousands of cargos and airlines flying to over 180 cities in the world, and affordable local taxis for movements within the city. 

There are also well-built office buildings for companies interested in operating from a physical office.

Companies also enjoy fast and efficient internet connections and telecommunication networks.

The healthcare system in Hong Kong is also developed with several private and public clinics delivering top-notch health care services.

Expats can also get health insurance coverage to access the hospitals and clinics at an affordable cost.

Highly skilled workers

Foreign companies often recruit skilled workers in any country they set up businesses in to commence operations.

Using a local workforce improves a companies reputation in the community and helps the compy tailor its services to the needs of the community. 

Hong Kong has highly skilled and educated workers that are mostly fluent in English and Cantonese.

This is further strengthened by Hong Kong’s proximity to mainland China which gives workers broad exposure to the international business scene.

Also, Hong Kong attracts foreign high-skilled workers who render bespoke services to companies set up in Hong Kong.

Companies registered in Hong Kong can tap into the city’s talent pool to commence operations and maximize the available opportunities.


Hong Kong has garnered a reputation as a top business destination in Asia and is recognized by the World Trade Organization, World Bank, and other globally recognized business initiatives.

Thus, companies registered in the country enjoy exposure and are deemed reliable because they operate in one of the major commercial hubs in the world. 

Hong Kong’s reputation as an international business hub is well-deserved.  Not many countries have the necessary regulatory framework and resources to support foreign-owned enterprises. 

If you’re thinking of registering a company in Hong Kong, contact us for a seamless registration process. 


Vivian Au

For many years, I worked at big accounting and company secretary firms in Hong Kong. I started Air Corporate to make the life of entrepreneurs and SMEs easy.

Vivian Au