Opening a company in Hong Kong: locals, foreigners, freelancers and digital nomads

At a glance: Private company limited by shares with HKD 1 capital, Companies Registry online in one working day for HKD 1,545 plus 2,350 business registration, no resident director but a Hong Kong secretary and address, profits tax 8.25 percent on the first HKD 2 million then 16.5 on Hong Kong-sourced profits only, no VAT, no digital nomad visa. Legal forms. Sole proprietorship: business registration only, unlimited liability. Private company limited by shares under the Companies Ordinance (Cap. 622): no minimum capital, HKD 1 or more, one to 50 shareholders, at least one natural-person director of any residence, a company secretary who is a Hong Kong resident or a Hong Kong company, a registered office in Hong Kong. Registration. Companies Registry e-Services Portal: form NNC1, articles, director and secretary consents; fee HKD 1,545 online (1,720 on paper) plus the one-year business registration fee of HKD 2,200 and 150 levy collected in the same filing, HKD 3,895 in total (about 430 euros). Certificates usually issue within one working day; no notary. Licensed providers charge HKD 3,000 to 8,000 including a first-year secretary and address, so the first year excluding capital runs roughly HKD 7,000 to 12,000 (about 770 to 1,300 euros). Taxes 2026. Profits tax two-tiered: 8.25 percent on the first HKD 2 million (about 220,000 euros) and 16.5 percent above, for one nominated entity per group; unincorporated businesses 7.5 and 15 percent. Territorial: only profits arising in or derived from Hong Kong are taxed, offshore claims are scrutinised, and the refined foreign-sourced income exemption catches passive foreign income of multinational groups without substance. No dividend tax or withholding, no capital gains tax, no VAT, GST or sales tax. Salaries tax 2 to 17 percent after allowances, capped at the standard 15 percent (16 above HKD 5 million). Freelancers and the self-employed. Register with the Inland Revenue Department's Business Registration Office within one month of starting (HKD 2,350 a year). Profits taxed at 7.5 percent up to HKD 2 million and 15 above, or elect personal assessment at salaries tax rates; no flat regime, no VAT. Mandatory Provident Fund: self-employed persons aged 18 to 64 pay 5 percent of relevant income between HKD 7,100 and 30,000 a month, at most HKD 1,500 a month and nothing below 7,100. Foreigners. 100 percent foreign ownership except broadcasting licences; no local director, shareholder or agent beyond the Hong Kong secretary and office, and incorporation works entirely from abroad through a licensed provider. Residence routes: the Investment as Entrepreneur visa under the General Employment Policy (credible business plan, local jobs, capital and premises, no fixed amount), the Top Talent Pass Scheme for top-university graduates or earners of HKD 2.5 million (about 275,000 euros) in the previous year, the New Capital Investment Entrant Scheme from HKD 30 million (about 3.3 million euros); visa fee about HKD 230. Banks want in-person meetings and business evidence; many start-ups begin with Airwallex or Statrys. Branch of a foreign company. A non-Hong Kong company registers its place of business with the Companies Registry within one month (form NN1, certified constitution, latest accounts, an authorised representative resident in Hong Kong; fee about HKD 1,500 to 1,720 plus business registration). Taxed on Hong Kong-sourced profits at the same 8.25 and 16.5 percent, no branch remittance tax. A representative office needs only business registration and may not trade; a local subsidiary is the normal choice. Digital nomads. No digital nomad visa; visitors (90 days visa-free for most Western passports, 180 for the United Kingdom) may not take employment or set up a business, though remote work for an overseas employer during a visit is widely tolerated and untaxed while presence stays within 60 days a year. Longer options: the Top Talent Pass Scheme (no job offer needed) or a General Employment Policy visa sponsored by an employer or the founder's own company. Changed recently. Foreign-sourced income exemption extended to all disposal gains (January 2024); Capital Investment Entrant Scheme reopened at HKD 30 million (March 2024); business registration levy waived for two years then back from April 2026; salaries tax standard rate split into 15 and 16 percent (2024/25); global minimum and domestic top-up tax enacted (2025); residential stamp duty bands adjusted (February 2026). Figures checked October 2026 from the Companies Registry, the Inland Revenue Department, the Immigration Department, PwC Worldwide Tax Summaries and Hong Kong corporate service providers; thresholds and fees change yearly. Confirm with a licensed adviser in Hong Kong before you file.