Hong Kong

Company Formation

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• Private Limited Company minimum 1 shareholder, 1 director (can be same person, any nationality)
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• 16.5% corporate tax ONLY on Hong Kong-sourced profits (offshore profits 0% tax)
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• No VAT, sales tax or withholding taxes on dividends
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• Fast incorporation (1-3 days), annual audit required
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• Popular for trading, consulting, e-commerce, holding structures and regional headquarters
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• Strong IP protection and contract enforcement

Banking & Financial Services
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• World-class banking infrastructure (HSBC, Standard Chartered, Bank of China, Citibank, etc.)
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• Multi-currency accounts, trade finance, letters of credit
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• Gateway for RMB internationalization and China market access
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• Increasingly strict compliance (expect thorough KYC/AML due diligence)
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• FinTech and EMI options available for startups and digital businesses
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• No capital controls, free flow of capital in/out

Tax & Offshore Planning

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• Territorial tax system: only HK-sourced income taxed
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• Offshore profits exempt if operations, contracts and decisions made outside HK
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• No capital gains tax, no dividend tax, no withholding taxes
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• Extensive double tax treaty network (45+ agreements)
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• Transfer pricing rules apply but manageable with proper documentation
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• Must demonstrate offshore nature of profits through evidence and substance

Trusts & Asset Holding (Trust-Applicable)
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• Hong Kong trusts recognized under common law framework
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• Trust registration required (beneficial ownership transparency)
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• Used for family wealth planning, asset protection and succession
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• Trustee licensing required for professional trustees
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• Integration with HK companies for holding structures
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• Subject to HK regulatory oversight and international transparency standards