Frequently Asked Questions
Quick answers to the questions we hear most. Can't find yours? Get in touch.
Company Incorporation
Can a foreigner own 100% of a Hong Kong company?
Yes. There are no restrictions on foreign ownership. A non-resident can be the sole director and sole shareholder of a Hong Kong company.
Do I need to be physically present in Hong Kong to incorporate?
No. The entire process can be completed remotely. You sign all documents electronically and we handle all filings with the Companies Registry.
What type of company should I set up?
The vast majority of foreign businesses incorporate a Private Company Limited by Shares. This structure provides limited liability, is straightforward to administer, and is the most widely recognised format for banks, investors, and counterparties.
How long does incorporation take?
Typically 5 - 7 business days from the submission of your signed documents. Expedited registration (same or next business day) is available for an additional government fee.
What is the minimum share capital?
There is no minimum paid-up capital requirement. Most companies are incorporated with a nominal share capital of HK$1 or HK$10,000. We will advise on the appropriate amount based on your banking requirements and business needs.
Can I change the company name, directors, or shareholders after incorporation?
Yes. All of these can be changed at any time by filing the relevant forms with the Companies Registry. We handle these changes for our clients as part of our corporate secretarial service.
Taxation
What is the Hong Kong corporate tax rate?
The profits tax rate is 8.25% on the first HK$2 million of assessable profits and 16.5% on profits above that. This two-tier rate applies to qualifying companies.
What is the territorial tax system?
Hong Kong taxes only profits that arise in or are derived from Hong Kong. Profits from business activities conducted entirely outside Hong Kong may not be subject to Hong Kong profits tax; this is known as the offshore exemption.
Can my company claim the offshore profits tax exemption?
Potentially, yes, depending on your business model and how transactions are conducted. If your company buys and sells goods or services without the underlying activities taking place in Hong Kong, a portion or all of the profits may qualify for exemption. This requires careful documentation and a formal application to the IRD. We advise on and manage this process.
Does Hong Kong have capital gains tax?
No. Hong Kong does not impose capital gains tax. Profits from the disposal of capital assets, including shares, property held as investments, and other investments, are generally not taxable.
Are dividends taxed in Hong Kong?
No. Dividends paid by a Hong Kong company to its shareholders are not subject to withholding tax or any other tax in Hong Kong.
Does Hong Kong have GST or VAT?
No. Hong Kong does not levy goods and services tax or value added tax.
Banking
Can a foreign company open a Hong Kong bank account?
Yes. Foreign-owned Hong Kong companies can open corporate bank accounts. The process involves submitting your company documents, shareholder and director identification, and a detailed business profile for the bank's compliance review.
How long does it take to open a bank account?
Typically 2 - 6 weeks after submission of a complete application, depending on the bank and the complexity of your business. We work proactively to prepare a strong application and reduce delays.
Which banks do you work with?
We work with a panel of banking partners including major Hong Kong banks, digital business banking platforms, and private banking institutions. We recommend the most suitable option based on your business type, expected transaction volumes, and shareholder profile.
Do I need to visit Hong Kong to open a bank account?
Some banks require a video interview or a brief in-person meeting. We will advise on this based on the institution selected. In many cases, the process can be completed entirely remotely.
Cross-Border Payments
Which regions do you cover?
Our focus is Africa, the Middle East and Latin America, with coverage extending to Asia and Europe. Available corridors depend on customer eligibility, partner coverage and compliance review.
How fast is settlement?
Key stablecoin corridors can settle on the same day. Other corridors follow the timelines of the bank rails involved; we'll confirm expected timing for your corridors during onboarding.
Do I need to use stablecoins?
No. You can stay on bank rails, use stablecoins, or switch between them per payment.
Is the account in my company's own name?
Yes. Accounts are dedicated to your company, not pooled accounts where payments arrive "for further credit" to you. Each currency, such as USD or EUR, has its own account number.
Which companies can you onboard?
Operating companies, including US and BVI companies with owners in Argentina, Peru and elsewhere in Latin America. Investment funds and broker-dealers usually need specialist banking and are generally not onboarded.
Do I need invoices for every payment?
For trade-related payments in and out, a pro-forma or commercial invoice is normally required. It is standard anti-money laundering practice and keeps payments moving.
Do you offer corporate cards?
No. Our payment services cover collections, payouts, FX, liquidity and settlement.
Compliance & Ongoing Requirements
What are my annual compliance obligations as a Hong Kong company?
You must: (1) file an Annual Return (NAR1) within 42 days of your incorporation anniversary; (2) renew your Business Registration Certificate annually; (3) hold an Annual General Meeting or pass written resolutions in lieu; (4) prepare audited financial statements; and (5) file a Profits Tax return with the IRD. We manage all of these for our clients.
Does my company need an audit?
Yes. All Hong Kong companies, regardless of size, are required to have their financial statements audited annually by a Certified Public Accountant registered in Hong Kong. We coordinate with our qualified auditors.
What happens if I miss a filing deadline?
Late filing can result in financial penalties from the Companies Registry or the IRD, and in serious cases, the company may be struck off the register. We track all deadlines for our clients and file well in advance to prevent any issues.
Can I deregister my company if I no longer need it?
Yes. A Hong Kong company that has ceased business and has no outstanding liabilities can apply for deregistration with the Companies Registry. We manage this process. Alternatively, you can maintain the company in dormant status for potential future use.