Private limited company incorporation, company secretary and registered office, bank account support and annual audit, profits tax and Companies Registry compliance — for trading, sourcing and Asia-facing businesses.
Hong Kong is one of the world's easiest places to incorporate and remains a natural gateway for Indian businesses trading with mainland China and East Asia. A private limited company can be incorporated online within one to two working days, with the Business Registration certificate issued together with the Certificate of Incorporation under the one-stop service of the Companies Registry.
The tax system is territorial and simple: profits tax is charged only on profits arising in or derived from Hong Kong, at a two-tier rate of 8.25% on the first HKD 2 million of assessable profits and 16.5% thereafter. There is no VAT or GST, no capital gains tax, no withholding tax on dividends or interest, and no tax on dividends received. Offshore profits can be claimed as non-taxable, although since 2023 the foreign-sourced income exemption (FSIE) regime requires economic substance in Hong Kong for certain passive income received by multinational groups.
Every Hong Kong company must appoint a company secretary resident in Hong Kong, maintain a registered office there and have its accounts audited annually by a Hong Kong CPA. We provide these through our Hong Kong partner firm and manage your annual compliance calendar from Mumbai.
| Item | Position |
|---|---|
| Profits tax | 8.25% on first HKD 2 million; 16.5% thereafter (territorial basis) |
| VAT / GST | None |
| Withholding tax | None on dividends and interest; royalties to non-residents 4.95% effective |
| Formation time | 1–2 working days |
| Minimum shareholders / directors | 1 / 1 (natural-person director required) |
| Audit | Mandatory annual audit by a Hong Kong CPA |
The standard vehicle: one shareholder and one natural-person director minimum (of any nationality and residence), a Hong Kong company secretary, a registered office in Hong Kong and no minimum capital (HKD 1 is common in practice, HKD 10,000 typical).
Registration of the Indian company under Part 16 of the Companies Ordinance within one month of establishing a place of business. The parent is directly liable; filing requirements are similar to a local company.
Business registration only, for liaison and promotion activities. Cannot enter into contracts or earn profits in Hong Kong.
Hong Kong companies are widely used to hold subsidiaries in mainland China and South-East Asia, benefiting from Hong Kong's treaty network and the absence of tax on dividends and capital gains.
Name availability search on the Companies Registry, collection of due-diligence documents for the company secretary's client acceptance.
Form NNC1, Articles of Association and Notice to Business Registration Office filed electronically; Certificate of Incorporation and Business Registration Certificate issued.
Company kit, share certificates, statutory registers, Significant Controllers Register and appointment of company secretary.
Application to a traditional bank (HSBC, Standard Chartered, DBS, Bank of China) or a licensed virtual bank / payment institution (ZA Bank, Airwallex, Statrys). Some banks require a director's visit; several now onboard remotely with video verification.
ODI filings and UIN before the first remittance of share capital; Schedule FA disclosure in the promoter's Indian return.
The Indian side of an overseas structure
For Indian resident promoters, setting up abroad is only half the job. Depending on how the entity is owned and funded, you may need to comply with the Overseas Investment Rules, 2022 (Form FC filing through your AD bank, a Unique Identification Number and an Annual Performance Report), the Liberalised Remittance Scheme limit of USD 250,000 per person per financial year, Place of Effective Management (POEM) rules that can make a foreign company tax-resident in India if it is controlled from here, transfer pricing on transactions with your Indian business, and Schedule FA disclosure of foreign assets in your Indian return. We build these into the plan from the start.
Yes. Incorporation is fully electronic and the company secretary can complete KYC by video. The only step that may need a visit is bank account opening with some traditional banks; virtual banks and licensed payment institutions now open accounts remotely for well-documented trading businesses.
Only profits sourced in Hong Kong are taxed. If contracts are negotiated and concluded, goods shipped and services performed entirely outside Hong Kong, the profits may qualify for an offshore claim — but the IRD scrutinises these claims and the company must keep detailed evidence. For most operating companies we recommend planning on the assumption that profits tax applies and then examining the offshore position with the Hong Kong auditor.
Yes. Every Hong Kong company (other than a dormant company that has passed the necessary resolution) must have its annual financial statements audited by a Hong Kong-registered CPA, and the audited accounts accompany the profits tax return.
If the Hong Kong company is controlled and managed from India, it may be treated as resident in India under POEM, in which case its worldwide income would be taxable in India with credit for Hong Kong tax under the DTAA. Board meetings, decision-making and a locally based director help to establish management in Hong Kong. Dividends received by the Indian promoter are taxable in India at slab rates.
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