Set Up a Hong Kong
Trading Company

Hong Kong is the world's 8th largest trading economy and a premier hub for international trade. Key advantages include: no import or export duties on most goods, a free port with no customs tariffs, a territorial tax system with potential offshore profits exemption, a strategic location between East and West, and world-class logistics and banking infrastructure. Hong Kong also has an extensive network of free trade agreements.

Hong Kong is a free port. There are no customs tariffs or import duties on the vast majority of goods. Only a small number of goods (tobacco, hydrocarbon oil, methyl alcohol, and non-alcoholic beverages) are subject to excise duty. This makes Hong Kong one of the most cost-effective jurisdictions for international trading companies.

Yes. If your trading company's profits are derived from transactions where both the purchase and sale contracts are negotiated and concluded outside Hong Kong, those profits may qualify for offshore profits tax exemption. This is a significant tax advantage for international trading companies. Echo Olesen Global can advise on whether your trading activities qualify and assist with the offshore exemption application.

Most general trading activities in Hong Kong do not require a specific trading license. However, certain goods (food, pharmaceuticals, chemicals, textiles, etc.) may require specific import/export licenses or permits from the relevant government departments. Echo Olesen Global can advise on the licensing requirements for your specific trading activities.

Opening a bank account for a trading company in Hong Kong requires demonstrating a clear business model, providing documentation of your trade relationships, and meeting the bank's KYC requirements. Echo Olesen Global has established relationships with major Hong Kong banks and digital banking providers, and can advise on the best banking strategy for your trading business.

A trading company in Hong Kong actively buys and sells goods or commodities, with profits subject to Hong Kong profits tax (unless offshore exemption applies). A holding company typically holds shares in other companies and may receive dividends (which are not subject to HK tax) or capital gains (also not taxable in HK). Many international businesses use a combination of both structures. Echo Olesen Global can advise on the optimal structure for your specific business model.

Yes. All Hong Kong companies are required to maintain proper accounting records that sufficiently explain their transactions. For trading companies, this includes records of all purchases, sales, and inventory. Annual accounts must be audited by a Certified Public Accountant (CPA) registered in Hong Kong. Echo Olesen Global provides full accounting and audit services for trading companies.

Yes. A Hong Kong company is an excellent vehicle for sourcing products from Mainland China. Under CEPA (Closer Economic Partnership Arrangement), Hong Kong companies have preferential access to the Mainland Chinese market. Many international buyers use Hong Kong entities to manage their China sourcing relationships, as Hong Kong's legal system provides stronger contract enforcement and dispute resolution mechanisms.