Why set up a Hong Kong company

As one of the most open economies in the world, Hong Kong is the ideal location for business set-up and company formation. Hong Kong is specifically geared to enable free enterprise to flourish with a minimum of bureaucracy and restriction.

Hong Kong combines a simple low-rate tax regime with free market principles. There are no restrictions on inbound or outbound investment and there are no nationality restrictions on ownership. Foreigners can invest in almost any business and own up to 100% of the equity.

The Hong Kong tax system is territorial. Profits from a Hong Kong business are subject to profits tax (currently at a rate of 16.5%) but foreign-source income is not taxable even if remitted to Hong Kong. There is no capital gains tax, no sales tax, no withholding tax on dividends or interest and no inheritance tax.

In addition to being a major financial and commercial centre in its own right, Hong Kong serves as a regional headquarters and business hub for the Asia Pacific region. It also acts as a gateway for companies looking to do business in Mainland China and mainland enterprises seeking access to global markets.

Hong Kong’s appeal is built on its political stability, the rule of law, the free flow of information and the use of English as the language of business. It offers a strong pool of local well-qualified talent, while business-friendly immigration policies make it simple to recruit professionals from overseas.

Sovereign Hong Kong also provides Trust administration to help you protect your assets and family wealth.  Click through to our Private Client section for more information.

Why incorporate with us?

Sovereign is a leading worldwide corporate services provider with over two decades of experience in the Hong Kong market. Sovereign Trust (Hong Kong) will assist you to select the most effective and efficient legal entity, and will then form and register that entity in line with local laws and regulations.
A company will be required to maintain a minimum presence in its place of incorporation – a registered office and a resident company secretary and/or a resident agent. We generally provide these services for all of our clients and describe them as ‘domiciliary services’
We also provide the necessary expertise in administering and managing companies, including company secretarial services, company law, board procedures, director responsibilities and shareholder relations, and financial and corporate compliance requirements. This will enable the company’s owners to focus on their primary business.
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Hong Kong company formation FAQs

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Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.