Setting up a limited company in Hong Kong is often the first step for entrepreneurs starting a new venture. However, forming a company involves much more than just obtaining registration documents and a business registration certificate. In addition to the initial cost of creating a Hong Kong company, business owners must also prepare for ongoing statutory expenses, such as auditing, tax filing, and annual government fees. These operating costs can easily amount to several thousand Hong Kong dollars each year.
This article provides a step-by-step breakdown of the company formation process in Hong Kong, helping you understand the full picture from business registration fees, required filings with the Hong Kong Companies Registry, to the market rates of company formation service providers. Whether you are a Hong Kong resident or an overseas entrepreneur, this guide will help you navigate the costs, procedures, and long-term financial obligations of running a Hong Kong limited company.
Steps to Set Up a Limited Company in Hong Kong
Hong Kong is known for its sound legal system and streamlined company registration procedures, making it a popular choice for both Hong Kong residents and overseas entrepreneurs. Below are the key steps involved in forming a limited company in Hong Kong.
1. Choose a Company Type
Before starting the registration process, you must first determine the type of company to form. This decision affects your company’s structure and financial liability. The two most common types in Hong Kong are:
- Private Company Limited by Shares: The company has share capital, and members’ liability is limited to any unpaid amount on their shares. This is the most common structure for commercial businesses.
- Company Limited by Guarantee: This type has no share capital. Instead, members agree to contribute a specific amount in the event of winding up. It is mostly used by non-profit organisations such as associations and foundations.
2. Choose a Company Name
Next, you need to propose a unique name for your company. The name can be in Chinese, English, or a combination of both. It must not be identical to an existing company name and should avoid misleading terms or references to government bodies, as these may lead to rejection. You can search for name availability through the Hong Kong Companies Registry website to avoid duplication or disapproval.
3. Prepare Statutory Registration Documents
Once your company name is confirmed, you will need to prepare a set of statutory documents that define the company’s legal structure, management approach, and basic member information. These documents must be signed by the proposed director or company secretary. Typically, the required documents include:
- Incorporation Form (NNC1 for companies limited by shares, NNC1G for companies limited by guarantee)
- Articles of Association
- Business Registration Notice IRBR1
4. Submit the Application and Pay the Fees
After preparing all necessary documents, you can submit your application via the e-Registry online platform or by visiting the Companies Registry office in Admiralty. At the time of application, you will need to pay the relevant government fees, including the company registration fee, document filing fees, and the business registration fee.
Overview of Hong Kong Company Formation Costs
When planning your business, understanding all related costs can help you allocate your budget and time more confidently. The main components of the Hong Kong company formation cost can generally be broken down into the following categories:
Company Registration Fees and Business Registration Certificate Charges
According to the latest fee schedule from the Hong Kong Companies Registry, the basic government fee for incorporating a private company limited by shares through electronic submission is HKD 1,545. If you opt for paper submission, the fee increases to HKD 1,720. Regardless of the submission method, a non-refundable document storage fee of HKD 265 is also required.
Submitting your company registration application also includes applying for a business registration certificate. For the 2025/26 assessment year, the one-year business registration fee is HKD 2,200. If you handle the registration electronically, the minimum total government fees would be HKD 4,010 (HKD 1,545 + HKD 265 + HKD 2,200).
Fees Charged by Company Formation Service Providers
Many business owners prefer to appoint professional company formation service providers to manage the registration process. This saves time and reduces the risk of errors. These service packages generally range from HK$3,000 to HK$8,000, depending on the scope of service.
Packages often include document preparation, online submission, drafting of the Articles of Association, provision of a registered address, and company secretary services. Some premium packages even include assistance with opening a business bank account. It's a good idea to compare multiple providers to find one that suits your business needs.
Company Secretary Fees
Under the Companies Ordinance, every Hong Kong company is required to appoint a company secretary. If the secretary is an individual, they must be a Hong Kong resident. The company secretary is responsible for handling statutory documents and ensuring legal compliance, such as filing the annual return.
Professional company secretary services typically start at HK$2,000 per year. If your business also requires additional services like opening a business bank account, using a registered address, mail handling, or preparing audit reports and financial statements, these will incur extra fees and will be explained further below.
Summary of Key Company Formation Costs
Ongoing Costs of Running a Company in Hong Kong
Once your company is successfully incorporated, you will still need to cover various annual expenses to stay compliant, including registration renewals, statutory filings, audits, and tax reporting.
Business Registration Certificate (BR) Renewal Fee
According to the Inland Revenue Department of Hong Kong, the Business Registration Certificate must be renewed annually. The fee for a one-year certificate is HKD 2,200.
Alternatively, you may apply for a three-year certificate at a total cost of HKD 6,020, which averages HKD 2,007 per year. This option is more cost-effective for companies planning for long-term operations, and it reduces administrative work from annual renewals.
Annual Return Filing Fee and Penalty System
All companies in Hong Kong must file an annual return (Form NAR1) with the Hong Kong Companies Registry to update essential company information such as directors, shareholders, and company structure. The filing deadline is within 42 days of the anniversary of incorporation. If filed on time, the government fee is only HKD 105. However, late filings incur escalating penalties based on the number of days overdue:
Audit and Tax Filing Costs
According to the Companies Ordinance, unless a company qualifies for rare exemptions, every limited company must undergo an annual audit conducted by a certified public accountant and submit a Profits Tax Return to the Inland Revenue Department. Even if the company has no revenue or operations, an audit report must be prepared unless the company has been approved as a dormant entity. In short, as long as a company is registered in Hong Kong, annual tax filing is mandatory.
Audit reports must be completed by a practising accountant recognized by the Hong Kong Institute of Certified Public Accountants (HKICPA). Most companies outsource both audit and tax filing to professional accounting firms, with fees starting from HKD 3,000. Larger companies or those with more complex accounts and frequent transactions may incur higher costs.
Maintenance Cost of the Company’s Significant Controllers Register (SCR)
All Hong Kong-incorporated companies, except listed companies, are required to maintain a company’s Significant Controllers Register (SCR) to record the individuals or entities that ultimately control the company. This register is not submitted to the government but must be kept at the company’s registered address and made available for inspection by authorities.
Companies can manage this internally or appoint a company secretary or a service provider. Annual service fees for outsourced SCR management typically range from HKD 800 to HKD 1,000.
Profits Tax
Each year, the Inland Revenue Department issues a Profits Tax Return to every company. Hong Kong adopts a two-tier tax rate system: the first HKD 2 million of profits is taxed at 8.25%, and the remainder at 16.5%. Companies are usually required to pay provisional tax alongside their filing, which is an advance payment for the following year. Even if the company is not in operation, it must still submit a tax return and audit report to avoid penalties or investigation.
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Frequently Asked Questions About Hong Kong Company Formation Cost
How much does it cost to set up a company in Hong Kong?
If you register a private limited company electronically, the basic government fees total around HKD 4,010. If you hire a company formation service provider, including company secretary and registered address services, the total cost typically ranges from HKD 6,000 to HKD 10,000.
How do I set up a company in Hong Kong?
First, choose your company type (such as a private company limited by shares). Then, confirm your company name, prepare the required statutory documents, and submit your application through the Companies Registry platform. After incorporation, you must appoint a company secretary and provide a registered address.
Can I set up a Hong Kong company from overseas?
Yes. You do not need to be physically present in Hong Kong. By appointing a local company secretary and using a Hong Kong-registered address, you can complete the registration process remotely. Many overseas entrepreneurs work with professional service providers to complete the entire incorporation process online.
Frequently Asked Questions
