A Complete Guide to Starting a Business in Hong Kong 2025
Start a Business in Hong Kong
Hong Kong’s vibrant economy, strategic location, and business-friendly environment have made it one of the world’s most sought-after destinations for entrepreneurs and investors alike. From being a global shopping paradise to a stunning tourist hub, Hong Kong offers much more—especially when it comes to starting a business or incorporating a Hong Kong limited company.
Many investors dream of launching a business in Hong Kong, and for good reason. As one of the top startup ecosystems globally—currently ranked 5th in the world—Hong Kong boasts a growing GDP, low tax regime, and a robust legal framework that supports business growth. However, with growing competition, success here demands a solid business plan and informed decision-making.
Compelling Reasons to Start a Business in Hong Kong
Many big corporations, such as Facebook, Google, Apple, Amazon, PepsiCo, and Starbucks, are investing in Hong Kong. Do you want to know why? Here are some reasons:
- Fewer tax burdens
- Reduced business risk
- Business-friendly environment
If these reasons excite you, there are even more compelling reasons to start a business in Hong Kong. The foreign investors mainly contribute to the economy’s dynamic growth, and hence, the government of Hong Kong has begun special programs for them.
If you want to expand your wings to Hong Kong, investing here is a great idea. However, this idea can be made more significant by availing yourself of our valuable consultancy services, which will help you set up a new company in Hong Kong from scratch.
1. Economic Growth of Hong Kong
The dynamic economy of Hong Kong is the principal reason why you should start a business in Hong Kong. The economic freedom of this country stands at the first place both regionally and internationally. This country’s economic freedom stands in the first place both regionally and internationally. This freedom is contributed by:
(i) Economic policies
(ii) Transparent legal laws
(iii) The open market of Hong Kong
(iv) Efficiency in the regulatory systems
(v) Security of the property rights
2. Opportunity to Invest in a Wide Range of Sectors
Unlike other countries, starting a business in Hong Kong is easier. The business registration process is simple and less expensive; hence, starting a business in Hong Kong with a concrete business plan is a good idea. Hence, many start-ups have come up in Hong Kong, contributing to this region’s economy. The growing sectors of Hong Kong are:
(i) Information & Technology
(ii) E-commerce
(iii) Hardware
(iv) Financial Technology
(v) Professional services
(vi) Healthcare
(vii) Data analysis
(viii) Education and learning
3. Attractive Government Policies and Initiatives
Foreign investors are willing to start a business where the government is supportive. Hong Kong allows foreigners 100% ownership. Thus, they can be Hong Kong business owners and enjoy senior positions in the company. The government of Hong Kong has started InvestHK, a department which offers free investment promotion to businesses and provides services to foreign companies.
4. Geographical Location of Hong Kong
Hong Kong is situated in Central Asia, thus giving businesses access to different trade markets, particularly mainland China. The strategic location of Hong Kong is one of the most compelling reasons why investors are interested in Hong Kong. Investors who get access to a wide range of markets are always ready to expand their business to such areas, and Hong Kong is one of them!
5. Excellent Banking Facilities
Hong Kong offers multi-currency bank accounts to its foreign investors. Hong Kong is a global leader in the banking sector. Along with excellent banking facilities, the corruption rate in Hong Kong is relatively low compared to the UK, USA, and Germany.
6. Less Burden of Taxes
Hong Kong’s corporate tax rate is very low compared to other countries. There are no VAT or dividend sales taxes here. The current taxes of Hong Kong are 16.5% profit tax, 15% property tax, and 15% of salaried taxes. This low tax regime offered by the Hong Kong government is one of the primary reasons companies are expanding their business to Hong Kong.
7. Special Initiatives From Government
To attract foreign investment, the government must start special programs, and they haven’t failed here. The government has extended its helping hand to foreign investors because it understands that the economy’s growth is directly proportional to the investment made in Hong Kong.
Hong Kong’s government has special programs such as loan funding, market funds, and an incubator program, which attract foreign investors.
8. Easy Selling of Corporate Shares
The business owners can easily sell their shares to expand their business further through the cash that comes from selling the shares. Unlike other countries, where selling corporate shares is complicated, Hong Kong has simplified this process. Thus, the companies set up in Hong Kong can efficiently utilise their money by selling their business shares to acquire assets for the company.
9. Talented Labour Force
The talent of Hong Kong is well-educated and adaptable, with strong ethics. Hong Kong allows the employment of professionals from overseas. The immigration policy of Hong Kong also allows the entry of their families into permanent settlements here.
10. Excellent Infrastructure
Hong Kong has a world-class railway, logistics, airports, and telecom infrastructure. This is an important consideration when starting a business in a new place. The airport is well developed in Hong Kong and is well connected to all the important airlines. The railway stations of Hong Kong are excellently developed, thus offering the easiest means to travel from one place to another. The deep-sea port of Hong Kong is designed in such a way that it has become the best means to commute in Hong Kong.
Apart from the rapid and dynamic growth of the economy, foreign investors are also keen to understand the country’s infrastructure and government initiatives before investing. Hence, Hong Kong has never disappointed any of its investors by providing a business-friendly environment to them.
How to Select the Right Business Structure in Hong Kong?
There are various factors that you have to consider when starting a business. This includes your target market, selected product or service, niche, marketing strategies, business location, and more etc. Without setting these basics at the forefront, there’s a higher chance that your business will not thrive and reach your intended goals.
But if you feel like these aspects are in the proper places already, then it might be the time for you to put on that captainship hat and start growing your business.
Our team will select the right proper business structure for you depending on:
- Size of the business
- Capital investment
- No. of employees
- Business requirement.
Some common business structures of Hong Kong are:
1. Limited Company
Small and medium-sized enterprises usually establish this type of entity. You must hire at least one director and 1 shareholder to set up a limited company. There is no minimum capital requirement for starting this entity.
2. Branch Office
The parent company sets up Branch Office. The headquarters decides all the activities of the branch office. The debts and liabilities of the branch office are owed to the parent company.
3. Subsidiary Office
The subsidiary office works similarly to a branch office except that it is responsible for its own debt and liability.
4. Representative Office
A representative office is an excellent way to explore the market of Hong Kong before expanding your wings here. An RO cannot perform any income-generating activities here.
5. Sole Proprietorship
This business entity has a single owner and best suits small firms. The firm’s owner is responsible and liable for all the debts and can enjoy the profits after paying income tax.
6. Partnership
When two people come together under an agreement to do business, a partnership firm is established. There are two types of partnership firms:
- A General Partnership is where the investor is entirely liable for the company, including the partner’s actions.
- A limited partnership is best for investing where you are responsible for your contribution, but you cannot control any business activities. It is established between the principal partner and the limited partner.
How to Start a Business in Hong Kong?
The business registration process is simple in Hong Kong, but can be time-consuming. Availing our consultancy services can simplify this setup process and reduce the time needed for our clients to start their business quickly in Hong Kong. Our team can reduce the time as they have good experience in checking the uniqueness of the company name, filling the application (without allowing it to get rejected), opening the correct local bank account, etc.
The procedural steps of business registration are:
1. Select a Company’s Name
Select a unique name for the company before registering a business in Hong Kong. Make sure that the name that you have selected is exceptional, and no other company has the same name as yours in Hong Kong. Our team will help check if your chosen name is unique.
2. Register the Company
Apply for business registration to obtain a business registration certificate. Make sure your application form has been correctly filled out to avoid rejection. 3ecpa helps you fill the application form correctly by selecting the correct business entity and filling out in other details. We haven’t failed to pass the application form for business registration in one go.
3. Open a Local Bank Account
After your business has registered with the Inland Revenue Department, you need to open a local bank account. Hong Kong is a global leader in banking and offers you a multi-currency facility. We at 3ecpa help you open a bank account that meets your requirements.
4. Register a Local Business Address
You need to have a local business address so that you can receive the newsletter, and it becomes a mailing address for your company.
5. Hire Employees
Every company set up in Hong Kong requires people. Depending on your business requirement, you hire local employees for your business, with a headcount that will satisfy your business needs. Hiring can be a challenging task if you are new to Hong Kong. You may not know where to start and whether you’re hiring the right people with the proper skill set.
Hence, 3E Accounting Hong Kong offers help. We will recruit the necessary employees depending on your requirements, by sending out job openings.
6. File Taxes
Once your company has begun its operation, paying taxes to the government and submitting the annual financial report is mandatory. You can hire an auditor so that he/she can help you in filing returns and improving the overall business operations, thereby cutting down unnecessary costs.
Visa Application to Start a Business in Hong Kong
The time taken to start a business in Hong Kong is worth the wait, as
Hong Kong has much to offer its investors. There are many attractive government initiatives and the rapidly growing economy of Hong Kong, which will boost your company’s financial chart.
Before expanding your wings to Hong Kong, you might want to understand the market of Hong Kong market. You could also want to establish professional contacts for supply and sales, and tune your Chinese skills by setting up a representative office here. Despite all these efforts, you must be patient as it takes time for any business to build into an empire. You must have a whole business plan. Do not worry about the local support as we have a complete team of highly experienced people who can guide you for accountancy, taxation or consultancy.
You need to apply for a visa to invest in Hong Kong or search for a job here. To apply for a visa, you must fill out a visa application form and meet the criteria of educational qualification and professional qualification. You shouldn’t have a criminal history or any negative police record.
The application form is available online and can be downloaded from (ID 999A) from the Immigration department.
The following are the documents required for obtaining a visa:
- Passport photograph copy.
- Copy of your passport.
- Proof of your educational and professional qualification.
- Your business plan for two years.
- Background information about your business.
Business plans are not lengthy descriptions but a basic outline for starting a business in Hong Kong. This business plan can be modified at later stages depending on the company’s growth.
Have an Intact Business Plan to Start a Business in Hong Kong
Having a business plan is imperative to start a business in Hong Kong. No matter how good your innovative idea is, your venture cannot be successful until you have a concrete action plan.
A business plan must have complete details about the business, such as:
- Business goals – primary and secondary
- Marketing plans
- Budget plans
- Strong reasons to support why your business can be a hit in Hong Kong
- Details of the team that can help you achieve business goals.
Business plans are not lengthy descriptions but a basic outline for starting a business in Hong Kong. This business plan can be modified at later stages depending on the company’s growth.
How Can 3E Accounting Help You Start a Business in Hong Kong?
Being an economically free cosmopolitan, Hong Kong has become a start-up hub. The foreign investors are setting up different business structures here, depending on their requirements. We have a team that will get in touch with you to understand your business goals, capital investment, business niche, and thus we will help you in deciding the proper business structure for a profitable and successful venture.
We have experts from different fields who can help you with accountancy, taxation, business registration applications and recruiting employees. 3ecpa has been registering companies for more than a decade. With this experience comes great contacts, which make the entire business registration process easier.
You can sit with our team in your own country and decide how to begin the process of business registration in Hong Kong. Our experts will help you from scratch to successfully establish your venture. We have our services worldwide, so we try our best to avoid unnecessary travel for our clients to set up a business in a new country.
Our team selects a local bank for you that doesn’t require you to travel to open a local account here. We are dedicated towards our clients and provide complete support to them to make their dream of starting a company in Hong Kong come true.
Get in touch with us via email or phone call, and we will be glad to assist you.
