FAQ
Frequently Asked Questions
Comprehensive answers to the most common questions about Hong Kong company registration, corporate services, accounting, and immigration — from our licensed expert team.
Company Registration
What type of company should I register in Hong Kong?
The most common type for foreign investors and entrepreneurs is a Private Company Limited by Shares. This structure offers limited liability protection, is straightforward to incorporate, and is recognized globally. Other options include unlimited companies, guarantee companies, and branches of foreign companies. Echo Olesen Global will advise on the most suitable structure for your specific circumstances.
What is the minimum capital requirement for a Hong Kong company?
There is no minimum paid-up capital requirement for a Hong Kong private limited company. Many companies are incorporated with a nominal share capital of HK$1 or HK$10,000. The authorized share capital can be set at any amount. We recommend discussing your specific needs with our advisors to determine the appropriate capital structure.
Can a single person own and manage a Hong Kong company?
Yes. A Hong Kong private limited company can have a single director who is also the sole shareholder. However, the company must appoint a separate company secretary — the director cannot also serve as the company secretary. Echo Olesen Global can serve as your company secretary.
What documents are required to register a Hong Kong company?
For individual directors and shareholders: a valid passport or HKID card, proof of residential address, and contact information. For corporate shareholders: Certificate of Incorporation, Articles of Association, and director/shareholder information. Echo Olesen Global will provide a complete checklist based on your specific structure.
Can I register a Hong Kong company with a foreign director?
Yes. There are no nationality or residency restrictions on directors of Hong Kong companies. A director can be of any nationality and reside anywhere in the world. The only restriction is that the company secretary must be a Hong Kong resident or a licensed TCSP provider like Echo Olesen Global.
Company Secretary
What does a company secretary do in Hong Kong?
A company secretary in Hong Kong is responsible for maintaining statutory registers, filing annual returns (NAR1) with the Companies Registry, preparing board resolutions and AGM documentation, notifying the Companies Registry of changes to directors, shareholders, and registered address, and ensuring the company complies with all requirements of the Companies Ordinance.
Can I change my company secretary?
Yes. You can change your company secretary at any time by passing a board resolution and filing the relevant form (ND2A) with the Companies Registry within 15 days of the change. Echo Olesen Global can take over as your company secretary from any existing provider.
Accounting & Tax
Does a Hong Kong company need to be audited?
Yes. All Hong Kong companies (except dormant companies that meet specific criteria) are required to have their financial statements audited annually by a Certified Public Accountant (CPA) registered in Hong Kong. The audited financial statements must be submitted with the Profits Tax Return to the Inland Revenue Department.
What is the Hong Kong Profits Tax rate?
Hong Kong operates a two-tier profits tax system. The first HK$2 million of assessable profits is taxed at 8.25% for corporations (or 7.5% for unincorporated businesses). Profits above HK$2 million are taxed at 16.5% (15% for unincorporated businesses). There is no capital gains tax, no VAT, and no withholding tax on dividends.
What is the offshore profits tax exemption?
Hong Kong operates a territorial tax system — only profits arising in or derived from Hong Kong are subject to profits tax. If a company's profits are genuinely sourced outside Hong Kong (e.g., trading activities conducted entirely outside Hong Kong), it may apply to the IRD for an offshore profits tax exemption. This requires careful documentation and professional advice.
When must a Hong Kong company file its Profits Tax Return?
The Inland Revenue Department issues Profits Tax Returns on 1 April each year. The standard filing deadline is 1 month from the date of issue. However, tax representatives (like Echo Olesen Global) are granted extended filing deadlines under the Block Extension Scheme, typically extending to November or April of the following year depending on the company's financial year end.
Banking
Why is it difficult to open a business bank account in Hong Kong?
Hong Kong banks have significantly tightened their KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements in recent years. Banks conduct thorough due diligence on the business model, beneficial owners, source of funds, and expected transaction patterns. Incomplete documentation, unclear business models, or high-risk industries are common reasons for rejection.
Can I open a Hong Kong business bank account remotely?
Some banks offer remote account opening for certain business types, while others require in-person attendance. The requirements vary by bank and business profile. Echo Olesen Global advises on the most suitable banking option for your specific circumstances and facilitates the introduction process.
Trademark & IP
How long is a Hong Kong trademark valid?
A registered trademark in Hong Kong is valid for 10 years from the date of filing. It can be renewed indefinitely for successive 10-year periods upon payment of the renewal fee. Echo Olesen Global manages trademark renewal reminders and filings on behalf of our clients.
Does a Hong Kong trademark protect my brand in China?
No. Hong Kong and mainland China are separate trademark jurisdictions. A Hong Kong trademark provides protection only within Hong Kong. For protection in mainland China, you must file a separate application with the China National Intellectual Property Administration (CNIPA). Echo Olesen Global can handle both applications simultaneously.
Visa & Immigration
What is the difference between TTPS and QMAS?
The Top Talent Pass Scheme (TTPS) is primarily income-based or university-ranking-based, allowing eligible applicants to enter Hong Kong for up to 2 years to seek employment or establish a business. The Quality Migrant Admission Scheme (QMAS) is a points-based scheme with a quota, allowing skilled individuals to settle in Hong Kong without a prior job offer. Both schemes have different eligibility criteria and application processes.
Can I apply for Hong Kong permanent residency after obtaining a work visa?
Yes. A person who has ordinarily resided in Hong Kong for a continuous period of 7 years may apply for the Right of Abode (permanent residency). The 7-year period can include time spent on a work visa, investment visa, or other permitted stay. Echo Olesen Global provides guidance on the permanent residency application process.
China Market EntryWFOE · RO · JV
What is the difference between a WFOE and a Representative Office in China?
A WFOE (Wholly Foreign-Owned Enterprise / 外商独资企业) is a fully independent legal entity that can generate revenue, issue Chinese VAT invoices (fapiao), hire employees directly, and repatriate profits to its foreign parent. A Representative Office (RO / 常驻代表处) cannot conduct direct business activities or earn income in China — it is limited to market research, liaison, and promotion. WFOEs require registered capital (typically RMB 100,000–500,000+) and take 3–6 months to establish; ROs are faster (1–3 months) and have no capital requirement but are subject to deemed profit tax on expenses.
Can a foreigner set up a company in mainland China without a Chinese partner?
Yes. A WFOE (Wholly Foreign-Owned Enterprise) allows 100% foreign ownership in most industries. However, certain restricted sectors — such as media, education, value-added telecoms, and some financial services — require a Chinese partner through a Joint Venture (JV) structure. China's Negative List defines which industries are restricted or prohibited for foreign investment. Echo Olesen Global reviews your industry classification and advises on the optimal entity type before you commit to any structure.
Why use Hong Kong as a gateway to set up a China company?
Hong Kong is the most efficient gateway for foreign investment into mainland China. A Hong Kong holding company can own a China WFOE, benefiting from the CEPA agreement, the HK-China double tax treaty (reduced withholding tax on dividends from 10% to 5%), and simplified capital repatriation via Hong Kong's free currency market. It also provides a neutral common-law jurisdiction for dispute resolution and international banking access. Echo Olesen Global handles both the HK holding company and the China entity setup as a single integrated service.
How long does it take to register a WFOE in China?
The WFOE registration process in mainland China typically takes 3–6 months from initial application to obtaining the Business Licence (Yingye Zhizhao). Key steps include: name pre-approval (1–2 weeks), Articles of Association notarisation, capital injection, and registration with the State Administration for Market Regulation (SAMR). Echo Olesen Global coordinates the entire process from our Hong Kong office, working with licensed China-side agents to ensure compliance and minimise delays.
Offshore Company Registration9 Jurisdictions
Do offshore companies (Cayman, BVI, Marshall Islands) pay corporate tax?
No. Cayman Islands, British Virgin Islands (BVI), and Marshall Islands companies are subject to zero corporate tax on profits earned outside their jurisdiction of incorporation. This makes them popular vehicles for international holding structures, investment funds, and cross-border trading. Unlike Hong Kong companies, these offshore entities have no requirement to file annual tax returns or audited accounts with local authorities. Echo Olesen Global assists with full incorporation and ongoing compliance for all three jurisdictions.
Can I open a bank account for my offshore company?
Yes. Echo Olesen Global includes bank account facilitation as part of our offshore company registration packages. We work with major international banks and digital banking platforms to help clients open corporate accounts in Hong Kong, Singapore, and other financial centres. Our team prepares all required KYC documentation — including corporate structure charts, business plans, and proof of address — to maximise approval rates and minimise delays.
Which offshore jurisdiction is best for my business?
The optimal jurisdiction depends on your business purpose and target market. Cayman Islands and BVI are preferred for investment funds, SPVs, and holding companies due to their established legal frameworks, zero-tax status, and global recognition. Singapore suits businesses requiring a reputable Asia-Pacific base with access to double tax treaties. UK and USA companies are ideal when clients require a Western-registered entity for credibility with European or American counterparties. Russia (with VTB banking) is suited for businesses with CIS market exposure. Our advisors provide a free jurisdiction comparison consultation to match your specific needs.
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