Facts in this handbook are compiled from official sources such as local authorities. Rules change — confirm the current position through the source links or with the authority before making major decisions.
01Overview
- Region
- East Asia & Oceania
- Capital
- —
- Currency
- HKD
- Languages
- Chinese, English
- ISO code
- HK / HKG
Jurisdictions
- Hong Kong SAR — Hong Kong SAR
China's direct investment
- China's 2025 FDI flow
- 1374.7 USD 100m
- End-2025 FDI stock
- 20350.8 USD 100m
- Flow rank
- #1 by flow
Source：2025 Statistical Bulletin of China's Outward Foreign Direct Investment ↗ · Flow is for calendar 2025; stock is at end-2025. Flow rank is from Table 8 (top 20); other countries from Annex Tables 1–2 (originally USD 10k, converted to USD 100m; one decimal, two below 1). A negative flow means divestment exceeded new investment that year.
Macro indicators such as GDP and population are not included yet; see official statistics such as the World Bank.
02Market Entry
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Foreign and local investors are generally treated alike; very few sectors are restricted
- Applies to
- Gambling is tightly controlled; broadcasting, telecoms and finance need licences
- Jurisdiction
- Hong Kong SAR
- Source
- MOFCOM
03Business Formation
Common legal entity
The company form most commonly used by foreign investors for a local operating entity.
Private company limited by shares
- Applies to
- Ordinary companies
- Jurisdiction
- Hong Kong SAR
- Source
- Companies Registry
Registration authority
Primary authority for company or commercial registration.
Companies Registry
- Applies to
- Online filing available
- Jurisdiction
- Hong Kong SAR
- Source
- Companies Registry
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Foreign and local investors are generally treated alike; very few sectors are restricted
- Applies to
- Gambling is tightly controlled; broadcasting, telecoms and finance need licences
- Jurisdiction
- Hong Kong SAR
- Source
- MOFCOM
Local director / representative
Whether a locally resident director, manager or representative is required.
No resident director requirement; at least one director must be a natural person
- Applies to
- The company secretary must be a Hong Kong resident or a Hong Kong body corporate
- Jurisdiction
- Hong Kong SAR
- Source
- Companies Registry
Local registered address
Whether a local registered address or premises is required at incorporation.
A registered address in Hong Kong is required
- Applies to
- A corporate service address may be used if it can receive statutory documents
- Jurisdiction
- Hong Kong SAR
- Source
- Companies Registry
Beneficial ownership register
Whether companies must keep or file ultimate beneficial owner information.
Must keep a significant controllers register (not filed with the Companies Registry)
- Applies to
- Kept in Hong Kong for inspection by law enforcement
- Jurisdiction
- Hong Kong SAR
- Source
- Companies Registry
Foreign-entity setup flow
Main approval stages for a foreign investor setting up an entity (no time estimates).
Incorporate via e-Registry with simultaneous business registration → open a bank account → profits tax filings with the IRD
- Applies to
- Excludes processing time estimates
- Jurisdiction
- Hong Kong SAR
- Source
- Companies Registry
04Taxation
Headline corporate income tax
Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.
16.5% (profits tax)
- Applies to
- Two-tiered: first HK$2m of assessable profits at 8.25% for corporations; only Hong Kong-sourced profits are taxed
- Jurisdiction
- Hong Kong SAR
- Source
- Inland Revenue Department
Indirect tax (VAT / GST / SST)
Standard rate and type of VAT, GST or sales & service tax.
No VAT or GST
- Applies to
- Ordinary companies
- Jurisdiction
- Hong Kong SAR
- Source
- Inland Revenue Department
Tax authority
Authority responsible for corporate tax registration and filing.
Inland Revenue Department
- Applies to
- Ordinary companies
- Jurisdiction
- Hong Kong SAR
- Source
- Inland Revenue Department
Dividend withholding tax (non-residents)
General withholding on dividends paid to foreign shareholders, before treaty relief.
No withholding tax on dividends
- Applies to
- Hong Kong also does not levy profits tax on dividends
- Jurisdiction
- Hong Kong SAR
- Source
- Inland Revenue DepartmentState Taxation Administration
Tax treaty with China
Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.
In force (Mainland–Hong Kong double taxation arrangement)
- Applies to
- Terms per the arrangement text and STA publications
- Jurisdiction
- Hong Kong SAR
- Source
- State Taxation Administration (China)
05Banking & Payments
Exchange controls
Whether general exchange controls or cross-border fund rules apply.
No exchange controls
- Applies to
- Funds move freely; cross-border cash or bearer instruments above HK$120,000 must be declared
- Jurisdiction
- Hong Kong SAR
- Source
- MOFCOM
Banking & financial regulator
Primary regulator for banking and foreign exchange.
Hong Kong Monetary Authority
- Applies to
- Ordinary companies
- Jurisdiction
- Hong Kong SAR
- Source
- MOFCOM
06Employment
Foreign employee work permit
Main permit types needed for foreign employees to work legally.
Employment visa from the Immigration Department
- Applies to
- Mainland residents apply under the Admission Scheme for Mainland Talents and Professionals; others usually under the General Employment Policy
- Jurisdiction
- Hong Kong SAR
- Source
- MOFCOM
Labour & work permit authority
Authority for labour rules and foreign employee work permits.
Labour Department
- Applies to
- Ordinary companies
- Jurisdiction
- Hong Kong SAR
- Source
- Labour Department
Social security contributions
Main employer social security schemes for local and foreign employees.
Mandatory Provident Fund (MPF)
- Applies to
- Employer and employee each contribute 5% of relevant income (capped); expatriates staying 13 months or less or covered by an overseas scheme may be exempt
- Jurisdiction
- Hong Kong SAR
- Source
- Mandatory Provident Fund Schemes Authority
07Trade & Customs
Customs authority
Authority for import/export clearance and tariffs.
Customs and Excise Department
- Applies to
- Hong Kong is a free port; most goods carry no tariff
- Jurisdiction
- Hong Kong SAR
- Source
- MOFCOM
Main free trade agreements
Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).
Mainland–Hong Kong CEPA and nine free trade agreements
- Applies to
- Ordinary companies
- Jurisdiction
- Hong Kong SAR
- Source
- MOFCOM
08Investment & Manufacturing
Investment authority / agency
Body responsible for approving, registering or promoting foreign investment.
Invest Hong Kong (InvestHK)
- Applies to
- Under the Commerce and Economic Development Bureau; investment promotion and landing support
- Jurisdiction
- Hong Kong SAR
- Source
- MOFCOM
Free zone / SEZ regime
Whether free zones or special economic zones operate under rules different from the mainland.
The whole territory is a free port; no separate special economic zones
- Applies to
- No customs duty except on tobacco, liquor, hydrocarbon oil and methyl alcohol
- Jurisdiction
- Hong Kong SAR
- Source
- Customs and Excise Department
09Digital & IP
IP office
Authority for trademark and patent filing and registration.
Intellectual Property Department (trademarks, patents, designs)
- Applies to
- IP protection is territorial
- Jurisdiction
- Hong Kong SAR
- Source
- MOFCOM
Personal data protection law
Main law and regulator governing collection, use and cross-border transfer of personal data.
Personal Data (Privacy) Ordinance (Cap. 486)
- Applies to
- Supervised by the Privacy Commissioner for Personal Data
- Jurisdiction
- Hong Kong SAR
- Source
- Office of the Privacy Commissioner for Personal Data
10Compliance & Risk
New York Convention party
Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.
Yes
- Applies to
- China extended the Convention to the Hong Kong SAR; foreign arbitral awards can be enforced under it
- Jurisdiction
- Hong Kong SAR
- Source
- UNCITRAL
Live risk monitoring
Geopolitical, conflict and trade-route risk events for Asia-Pacific, monitored by our sister site Global Risk Monitor.
View Asia-Pacific risk monitor
Global Risk Monitor · Geopolitical and trade-route risk monitoring
11Step-by-Step
Main setup steps in Hong Kong SAR, China
- 1Incorporate via e-Registry with simultaneous business registration
- 2open a bank account
- 3profits tax filings with the IRD
General checklist (setting up a subsidiary)
- Decide model and jurisdiction
- Confirm licences
- Prepare documents
- Incorporate
- Register for tax
- Open bank account
- Obtain operating licences
- Start operations
Steps follow the setup-procedure fact on this page, without times or fees; rely on the official sources.
12Official Resources
Chinese official resources
Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices
- MOFCOM country investment guideMOFCOM · PDF (Chinese)
- Country tax guide (STA)State Taxation Administration · PDF
- Commercial office中央人民政府駐香港特別行政區聯絡辦公室經濟部貿易處
- MOFCOM going-global platformMOFCOM
- Compliance & security alertsMOFCOM platform
Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.
Local authorities
- Company registrationCompanies RegistryCompany registration · Accessed 2026-11-12
- TaxInland Revenue DepartmentProfits tax · Accessed 2026-11-12
- LegislationOffice of the Privacy Commissioner for Personal DataPersonal Data (Privacy) Ordinance · Accessed 2026-11-13
- CustomsCustoms and Excise DepartmentCustoms and Excise Department · Accessed 2026-11-13
- LabourLabour DepartmentLabour Department · Accessed 2026-11-13
- LabourMandatory Provident Fund Schemes AuthoritySocial security · Accessed 2026-11-13