Hong Kong
CHINA GATEWAY
Hong Kong charges 16.5% corporate tax. Incorporation in 7-10 days. Suited to international trade and intermediation. Caveat: banking can be strict and more selective depending on sector and client geography.
Hong Kong is a global hub for international trade and services, with a territorial tax system and strong integration with China, making it a strategic option for Asia operations with proper structure and compliance.
Taxation
16.5%
Setup Timeline
7-10 days
Banking Access
Stability
Strategic Overview
Understand the positioning and differentials of this jurisdiction
Hong Kong is a global hub for international trade and services, with a territorial tax system and strong integration with China, making it a strategic option for Asia operations with proper structure and compliance.
Ideal Profile
Who this jurisdiction is best suited for
International trade and intermediation (sourcing, import/export, distribution)
Global service companies with offshore billing (evaluate substance and nexus)
Structures for business relationship with China and the Greater Bay Area
Competitive Advantages
Key benefits for structuring
Territorial taxation: offshore income can receive favorable treatment (with proper documentation and classification)
Strong commercial ecosystem: logistics, trade, and financial services in one of the world’s top hubs
AEO-ready: common questions (territorial tax, offshore income, banking) are answerable with objective data
Key Considerations
Important aspects to consider
Banking can be strict (KYC/AML) and more selective depending on sector and client geography
Requires compliance and substance consistency to reduce “offshore income” challenge risk
Banking Infrastructure
Banking options and financial access
- HSBC, Standard Chartered (depends on profile) + EMI alternatives for international operations
Frequently Asked Questions
Objective answers about structuring in Hong Kong
What are the main advantages of opening a company in Hong Kong?
Territorial regime: 0% on foreign-sourced profits, 8.25%/16.5% on local profits. Gateway to China, strong banking infrastructure, and solid reputation for international trade.
How much does it cost to open and maintain a company in Hong Kong?
Typical incorporation: US$ 1,200-2,500; annual maintenance (secretary, address, license): US$ 1,000-2,000. Annual audit required adds US$ 800-2,000 depending on volume.
Does Hong Kong tax profits and dividends?
Local-source profits: 8.25% up to HKD 2M and 16.5% above. Foreign-source profits: 0% if not remitted. Distributed dividends have no withholding tax.
Do I need a local director or office in Hong Kong?
Director can be foreign; no residency requirement. A local company secretary and registered address in Hong Kong are mandatory.
Does Hong Kong participate in CRS/automatic exchange?
Yes, Hong Kong joined CRS in 2018. Banks report non-resident accounts; structures must be declared in the country of residence.
What is the incorporation timeline in Hong Kong?
With KYC approved, incorporation takes 1-2 weeks. Digital company kit is issued 24-72h after Companies Registry filing.
Is Hong Kong suitable as a gateway to China/Asia?
Yes. It facilitates trade with China, access to regional banks, and premium reputation for Asian contracts. Ideal for trading, sourcing, and regional holdings.
How to report a Hong Kong company in Brazil?
Report in the Brazilian individual tax return (shareholding) and DCBE/CBE if foreign assets > US$100K. Distributions may trigger Brazilian CFC rules.
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