Frequently Asked Questions

• What are the advantages for establishing a company in Hong Kong?

  Strategic Location — Hong Kong's strategic location makes it a prime choice for international business ventures, facilitating access to China and the broader Asia-Pacific region.

  Business-Friendly Environment — The business-friendly environment in Hong Kong includes low taxation, a straightforward tax system, and the absence of Value Added Tax (VAT) or Goods and Services Tax (GST).

  Economic and Political Stability — With its stable economic and political climate, Hong Kong provides a secure platform for conducting business and attracting investments.

  Efficient Business Infrastructure — Hong Kong's well-developed infrastructure, efficient logistics, and highly skilled workforce contribute to its reputation as a business hub.

  Tax Benefits — Companies in Hong Kong enjoy tax advantages such as no capital gains tax, withholding tax on dividends or interest, and no sales tax or VAT.

  Ease of Doing Business — Hong Kong consistently ranks high in global indices for ease of doing business due to its streamlined regulatory procedures and business-oriented policies.

• What are the requirements to set up companies in Hong Kong?

  1. Set up by at least a shareholder, a director and a company secretary;

  2. The shareholder could be a legal person or a natural person. There are no restrictions on the nationality of the shareholder; The shareholder must be at least 18 years of age. 100% local or foreign shareholding is allowed.

  3. The director could be a legal person, but there must be at least one natural person director. There are no restrictions on the nationality of the director; The director must be at least 18 years of age.

  4. The shareholder could be the director. If the only shareholder act as the director at the same time, the director could not become the company secretary;

  5. Company secretary must be a Hong Kong resident, or a company registered in Hong Kong;

  6. A Hong Kong Company must designate a Hong Kong local resident to act as the designated representative; Client may appoint Infinity Grand to be the designated representative if they do not have local resident to be the designated representative.

  7. Amount of share capital, percentage of shareholdings if more than one shareholder. Unless otherwise advised, the amount of issued capital will be HKD10,000 (10,000 shares) if there is only one shareholder;

  8. The registered office address must be in Hong Kong.

  9. Taxation — Corporate tax, (or profits tax as it is called), is set at 16.5% of assessable profits for companies setup in Hong Kong. Hong Kong follows a territorial basis of taxation i.e. only profits which arise in or derived from Hong Kong are subject to tax in Hong Kong. There is no capital gains tax, withholding tax on dividends, or GST/VAT in Hong Kong.

  10. Ongoing Compliance — It is mandatory for companies to prepare and maintain accounts. Accounts must be audited annually by Certified Public Accountants in Hong Kong. The audited accounts together with tax return must be filed annually with the Inland Revenue Department. Every company is required to file annual returns with the Companies Registry and pay the annual registration fee.

• How to register a company in Hong Kong?

  1. Client should provide 2 to 3 English name or Chinese name or both for Hong Kong Company intended name.

  2. Client should fill in and sign on our KYC Form and Enhance Due Diligence Form (which will be provided by Infinity Grand) then return it back to Infinity Grand by email with section 2 required documents and materials.

  3. Infinity Grand performs a name availability search in the Register of Companies and inform clients the availability of the proposed company name,

  4. After confirmed the availability of the proposed name, Infinity Grand will prepare the Articles of Incorporation and other incorporation documents; clients shall pay Infinity Grand for the service fee;

  5. After received the service fee, Infinity Grand will send the documents prepared in part to clients, the directors and shareholders should sign on the documents. After signed, the documents should send to Infinity Grand Office.

  6. After Infinity Grand received all signed documents and no other issue of all documents, Infinity Grand will submit the duly signed incorporation documents to the Companies Registrar and pay for the government official fees and the business registration fees;

  7. Infinity Grand will receive the Certificate of Incorporation and Business Registration Certificate from the Companies Registry and the Business Registration Office respectively in about 2–3 working days. For the shareholder, director, or company registered outside territory of Hong Kong, it will take around 7 to 10 working days.

  8. Infinity Grand will prepare the company stamps and Articles of Association (the whole set of documents together is known as company kit) after company officially registered.

  9. Infinity Grand will deliver the documents for bank account opening to the bank designated by client for preliminary review;

  10. Infinity Grand will arrange the client to come to Hong Kong to open a corporate bank A/C.

• Can foreigners set up a company and own 100% of a business in Hong Kong?

  Yes, foreigners can set up a company and own 100% of a business in Hong Kong; no restrictions apply.

• How much is income tax for companies in Hong Kong?

  The income tax for companies in Hong Kong in 2023 is 16.5%. However, there is a two-tiered profits tax rate regime that applies:

  • •  8.25% for corporations on the first HKD 2 million of assessable profits.
  • •  16.5% for corporations on the remainder of assessable profits.

  The two-tiered profits tax rate regime is designed to encourage businesses to grow and expand.

  In addition to profits tax, companies in Hong Kong may also be subject to other taxes, such as salaries tax, property tax, and stamp duty.

  The amount of tax that a company pays will depend on its profits, the salaries of its employees, the value of its property, and the type of transactions it conducts.

  It is important to consult with a qualified tax advisor to determine the specific tax liabilities of your company.