Registering an IT company in Hong Kong

Registration of an IT company in Hong Kong is an official algorithm of integrating the established trade, which fully complies with the legislative setup of the supervisory region of the PRC. This territory is in great demand among financiers, as it has low excise rates for corporations, stable banks and developed infrastructure. Firms enrolled in this place can participate in trades with China. This article will consider the main stages of enrollment. If you adhere to them, you can quickly enter the Asian trading field.

The polity, a dynamic and transnationally linked pecuniary hub, plays a pivotal role in transnational trade, finance, and speculation. Strategically located at the heart of Asia, with its robust pecuniary sector, open market economy, and solid licit setup, the polity exerts significant economic influence transnationally, luring multinational corporations, and financiers.

Economic overview of HK

Free market economy

The polity operates one of the freest and most competitive economies in the world. Its low levy, minimal directorate intervention, and free trade policies make it an alluring destination for endeavours and financiers. Key economic principles include:

• No capital controls
• No foreign exchange constraints

Pecuniary Centre of Asia

The polity ranks among the top transnational pecuniary centres, alongside New York and London. Its stock exchange (HKEX) is among the world’s largest, luring both Chinese and transnational listings. Key pecuniary strengths include:

• Offshore Renminbi (RMB) hub: The polity facilitates the majority of transnational RMB transactions.
• Leading IPO market: HKEX consistently ranks among the top stock exchanges for money raised.
• Strong banking sector: Over 70 of the world’s top 100 banks operate in the polity.

Trade and logistics hub

The polity’s world-class port and airport facility make it a critical trade and logistics hub.

• Gateway to China: The polity is a major re-export centre, handling goods between Mainland China and transnational trading fields.
• World’s busiest cargo airport: The polity’s International Airport is a top transnational hub for air freight.
• Free trade policies: No tariffs on imports/exports enhance its role in transnational supply chains.

Transnational trade and financing hub

• The polity is a preferred base for multinational corporations due to its trade-friendly environment, common law licit setup, and bilingual workforce.
• It is home to over 9,000 transnational firms, including major firms from the US, UK, Europe, and Japan.
• The Closer Economic Partnership Arrangement (CEPA) with Mainland China supplies endeavours in The polity preferential ingress into Chinese trading fields.

HK’s economic influence worldwide

Bridge between mainland China and the world

The polity serves as a pecuniary and commercial gateway to Mainland China, luring transnational firms seeking ingress to the Chinese trading field.

• The Greater Bay Area (GBA) Initiative, linking the polity with Guangdong and Macau, enhances its regional influence.
• The polity accounts for over half of all foreign direct investment (FDI) flows into and out of China.
• The One Country, Two Systems framework consents the polity to operate with greater autonomy in trade, finance, and licit affairs.

Leading Offshore Renminbi (RMB) centre

As China internationalize its currency, the polity remains the largest offshore RMB trading hub, handling:

• Over 75% of transnational offshore RMB remunerations
• The world’s largest offshore RMB bond market (Dim Sum bonds)
• Major RMB clearing aids for transnational transactions

Dominance in Initial Public Offerings (IPOs)

The polity’s stock exchange is a preferred listing venue for Chinese tech giants and multinational firms.

• Alibaba, Tencent, and other major firms have chosen HKEX for secondary listings.
• The polity frequently leads in annual IPO fundraising, luring transnational financiers.

Transnational trade and financing flows

• The polity consistently ranks among the top 10 largest trading economies.
• It is a leading source of FDI, particularly in Asia.
• The polity's bilateral trade undertakings with ASEAN, the EU, and other trading fields strengthen its role in transnational commerce.

Innovation and tech hub

• The polity is investing heavily in fintech, artificial intelligence, and biotech to remain transnationally competitive.
• The Cyberport and Science Park foster tech startups and R&D collaborations.
• It is emerging as an innovation bridge between China’s tech sector and transnational trading fields.

Major financing sectors in HK

Pecuniary aids

The polity is a transnational pecuniary hub, hosting among the globe’s largest stock exchanges and offering financing chances in:

• Banking and wealth oversight
• FinTech and digital remunerations
• Private equity and venture capital
• Insurance and reinsurance

Real estate and property development

As one of the most expensive property trading fields worldwide, the polity offers lucrative financings in:

• Commercial real estate (office spaces, retail centres, hotels)
• Luxury residential properties
• Real Estate Investment Trusts (REITs)

Innovation and technology

The directorate is actively promoting R&D, AI, biotech, and cybersecurity, making the polity a rising innovation hub. Financiers can explore chances in:

• Artificial Intelligence and Big Data
• FinTech and blockchain
• HealthTech and biotech research

Trade, logistics, and transportation

The polity is a transnational logistics and trade hub with one of the world’s busiest ports and air cargo terminals, luring financing in:

• E-commerce and supply chain solutions
• Shipping and maritime aids
• Air cargo and freight forwarding

Green finance and ESG financings

With a strong commitment to sustainability and environmental protection, the polity is a leader in green finance, including:

• Green bonds and sustainable financing
• Renewable energy projects
• Smart city infrastructure

Tourism and Hospitality

As a major transnational tourist destination, the polity offers speculation potential in:

• Luxury hotels and resorts
• Retail and entertainment complexes
• Medical and wellness tourism

Healthcare and pharmaceuticals

The city’s growing ageing population and rising demand for medical aids create speculation chances in:

• Private hospitals and clinics
• Biotech and pharmaceutical R&D
• Medical tourism and specialised healthcare aids

Merits of registering an IT firm in Hong Kong

If you decide to initiate your own trade, you will be able to appreciate the following leverages:

1. Stability of the pecuniary field, which lures more financiers. If you look at the data supplied by the World Bank, you will notice that the GDP indicators are constantly growing. On average, this happens by 3.2% per year, which greatly lures financiers who want to open an IT company in Hong Kong. Such stability is explained by a balanced pecuniary field.
2. The policy in the supervisory region of the PRC is regulated transparently, so financiers have the opening to carefully scheme all stages of launching an IT startup in Hong Kong and further develop it.
3. The prestige of a territory that is not on the list of offshore zones. This indicator is valued among transnational partners, which consents the financier to conclude profitable deals.
4. Initiating to become part of one of the globe's top economies if you start an IT business in Hong Kong. You will have every chance to establish logistics with other major territories, including Japan, South Korea and others.
5. Saving on levies. To begin an IT trade in HK, you will only have to remunerate levies on the profits you receive in the supervisory region. The corporate excise is 16.5%. If you additionally receive profits in other territories, no excise is levied on this. Also, there is zero VAT, as well as levies on remunerations and invested capital.
6. Free economic zones help optimize algorithms aimed at trade development. The polity has many transnational airports and innovative trade centers suitable not only for office placement but also for trade negotiations.
7. Assistance from the directorate of the supervisory district. It has taken care of the creation of a setup aimed at sustainable trade development. If you are thinking about opening an IT company in the free zone, you can take advantage of special programs aimed at training personnel. There is also an opening to receive grants that consent you to implement modern technologies in development.
8. There are no constraints on transnational proprietorship, meaning expats can fully possess and operate an organisation in the polity.
9. The polity follows a common law licit framework, asserting security for endeavours and intellectual property prerogatives.
10. As part of the Greater Bay Area initiative and under CEPA (Closer Economic Partnership Arrangement), the polity-based endeavours can enter preferential treatment when operating in Mainland China.

All those who have registered an IT company in the free zone will be supported by the directorate. This consents not only to achieve reduced levies. The directorate helps new endeavours develop.

HK organisation forms

You should first opt for the form of corporation. Numerous popular options exist in the territory of the oversight region of the PRC, and the choice is contingent on many factors.

Financiers can opt for from numerous trade structures:

• Sole Proprietorship (suitable for small trades)
• Partnership (for endeavours with multiple proprietors)
• Branch Office (for transnational firms expanding into HK)
• Joint stock company
• Limited Liability Company (LLC)

LLC

If you are arranging to initiate an IT firm in HK, namely an LLC, then you will have to meet all the prerequisites announced by local authorities.

Absence of clear conditions for the minimum value of the total capital of financiers. The directorate tried to reduce it as much as possible to make it easier to open an IT business in Hong Kong. To pass enrollment, the authorized capital must be about 10,000 HKD (1285.41 USD). If the figure is significantly higher, then you will additionally need to remunerate an excise of 0.1% of the value that exceeds the minimum.

For the enrollment of an IT firm in HK to be fulfilled, the firm must have at least one financier, and the maximum is 50 people. Even expats of the oversight region of the PRC can own stakes. The overseer also has the prerogative to own shares. To create an IT company in Hong Kong, you can be a citizen of any polity. The only prerequisite is that you have no criminal record.

Each enterprise planning to register an IT company with limited liability in Hong Kong must have a valid address in the oversight district. This is where all official letters from the directorate will be sent. The organisation must have its own secretary who is a citizen of the polity. Each enterprise must hold meetings annually. The first time, co-owners must meet within 9 months from the date of enrollment. Subsequently, meetings are held once a year.

If you are going to work within the polity, the organisation office may not always be located there. It is also worth noting that accounting in HK is a necessity. And you will need to organise all the documentation in several languages - English and Chinese.

Joint-stock company

Another form is a joint-stock company. Another name is AO or PLC. Each enterprise planning to open a joint-stock company in Hong Kong must have an enrolled address in the oversight district. This version is relevant for large firms whose stakes can be purchased by residents of distinct territories. In a joint-stock organisation, the money is divided into several parts contingent on the value of financiers. Each of them is responsible only for their stake. The firm is overseen by a board of overseers consisting of financiers. They are the ones who have to make decisions regarding strategic decisions, organisation policy and the appointment of employees to key positions. Initiating a PLC in HK is not difficult if you carefully study all the nuances.

Branch

If you do not scheme to activate a full-fledged organisation, then the option of enrolling a branch is available. It is relevant when it is not possible to establish an organisation with 100% transnational proprietorship in the polity. However, you can supply your aid on an equal basis with other transnational firms. However, the main organisation that will own the branch assumes all obligations.

Partnership

There is also the possibility of creating an IT partnership in Hong Kong. It can be full or limited. In the first case, all participants are assigned unlimited liability. In the second case, liability is limited to the aid made to the common capital. Each financier can opt for the model that is relevant for him, focusing on the desired liability.

The renown is the enrollment of an LLC. However, you should opt for the form of proprietorship yourself, contingent on your schemes and needs. If possible, contact an experienced lawyer who will suggest the right solution.

Algorithm for registering an IT company in Hong Kong

If you have schemes to open a trade, you will have to go through several stages. All of them are mandatory, so they require attention and responsibility on your part.

Opting a company form

First, you need to decide in what form you scheme to create an IT firm in the polity. Forming a corporation is an imperative phase, and it should be approached consciously. Therefore, you should first weigh all the pros and cons of each form of proprietorship.

Organisation name reservation

Prior to enrollment, you will need to check and approve the moniker. Opt for monikers that will not violate intellectual property prerogatives. For this, you can use various registries. This will convince you to opt for a truly original moniker that will help establish an IT firm in HK quickly.

The moniker can be created in Chinese and English. It is imperative that the moniker already contains the licit form. To perform a thorough check of the correct name, use the website of the Company Registry.

Arrangement of statutory indentures

It is imperative to approve all the constituent indentures in advance. Without this, it is impossible to open an IT company in Hong Kong.

When you are forming a trade, you will need to remunerate a state fee when conveying indentures. Once all the papers have been conveyed, you should get a permit for the scheme. If you do not want to resolve the issues yourself, you can contact specialized experts. They will help you register an IT firm in HK even remotely. And you will not have to visit the supervisory territory of the PRC.

Conveying an enrollment

The next phase in enrolling an IT firm in the polity is to convey an enrollment. This can be done in several ways. The easiest way is to convey indentures using electronic registers. You can also send them by mail so that they can be entered into the register later. Remote registration of an IT company in Hong Kong is available to everyone. You only need to be present in person in the supervisory region of the PRC if you are going to have an interview at the bank to initiate an account.

Consideration of the request by the regulator

If you were engaged in opening an IT organisation in Hong Kong by conveying an electronic enrollment, then it will take from 2 to 4 days for consideration. During this time, provided that all stages are correctly completed, the enterprise will already be displayed in the register.

If the indentures were sent in paper form, the terms will be increased to 3 weeks. The opening algorithm is speedy. Everything can be done in a short time, and the leverage is the remote enrollment of an IT firm in HK, which is simple and fast.

Getting a Certificate of Incorporation

If your enrollment has been approved, a special credential will be issued. It can be gotten either electronically or on paper. It all contingent on how exactly the indentures were conveyed. In the case of remote submission, the credential will be open for downloading within one hour.

To receive a paper credential, you will need to wait up to 5 days. A corresponding notification about its readiness will be sent to your fax. To receive the indenture in person, you will need to visit the Register of Companies and present the employees with a notification indicating the code and moniker of the enterprise.

Needed indentures

To enroll an IT firm, you will need to garner the following indentures:

1. Application for enrollment.
2. The firm's charter. It is imperative to specify the purpose of its creation, structure and operating rules.
3. Statements written by the overseer and secretary that they have been hired.
4. An indenture confirming that the firm has its address in the polity. You can rent an office or buy one.
5. A receipt showing that the enrollment fee has been remunerated.
6. Full record about the overseer, founder and secretary.

Levy of firms in HK

Many people decide to run an IT trade in HK, because there is a clear and accessible levy setup. A distinctive feature is that levy is contingent on the territory. Simply put, levies must be remunerated only on the revenue that was obtained in the polity of the supervisory region of the PRC. If you register an IT business in Hong Kong and receive additional income from another place, it will not be levied.

It should be noted that no remuneration is needed in the polity:

• VAT;
• levy on goods sold;
• inheritance levy;
• capital gains levy.

If you decide to start an IT trade in HK, you will need to pay a corporate levy.

Components of corporate levy

You will have to remunerate levies on the revenues that were received as a result of work in the polity. The rates depend on which setup the enterprise has chosen - single-tier or two-tier.

The first option implies that 16.5% of the profit must be remunerated. If an unincorporated enterprise was created, the rate of 15% will be relevant for it. The two-tier regime is applied by reducing the rate. If the profit is less than HKD 2 million (USD 257,082.20), the rate will be 8.25%. If the income exceeds this amount, 16.5% will have to be remunerated.

Additionally, you can create an offshore firm to reduce the levy rate or eliminate it altogether. This is relevant provided that the firm's activities are undertaken in another polity. Registration of an offshore IT company in Hong Kong is undertaken via the levy service. And you need to supply not only an enrollment, but also a profit levy report and undergo an audit. It is possible that the levy service may request additional indentures for verification, so you should arrange for a different outcome.

Post-enrollment prerequisites and compliance

You’ll need a trade account to manage organisation finances. Some recommended banks for IT trades include HSBC, DBS, and Standard Chartered.

Your firm must be registered with the Inland Revenue Department (IRD) for levy purposes. If your IT trade involves fintech, cybersecurity, or telecom aids, additional licences may be required.

All firms must file annual returns, maintain proper accounting records, and undergo audits.

Hiring employees for your IT firm

If hiring transnational employees, you must enroll for work visas. Also, contributing to the Mandatory Provident Fund (MPF) is required.

Leveraging directorate support and rewards

The polity supplies various grants and funding options for IT startups, including:

• Cyberport Incubation Programme
• Innovation and Technology Fund (ITF)
• SME Financing Guarantee Scheme

Challenges of running an IT business in HK

Despite its leverages, IT endeavours may face challenges like:

• Intense trading field competition
• Evolving cybersecurity laws
• Difficulties opening trade bank accounts for startups

Opening a bank account

To conduct trade, you will need to initiate a pecuniary fiscal account in HK. This will authorise you to operate speculations. Absence of constraints on transfers in the territory of the supervisory region of the PRC. Therefore, you can easily carry out transactions between transnational banks and ensure flexibility in managing your assets.

Most of the functioning banks offer expats to open a commercial bank account in Hong Kong. However, the algorithm of its creation has several peculiarities, namely:

1. In order for the account to be considered open, it is very imperative to deposit a small amount. Its size is contingent on the bank you will be served by.
2. To open a fiscal account in the polity, you will have to collect a large list of indentures. You will also need to develop a trade scheme, convey all the constituent indentures, complete information about those who created the firm and will manage it.

Verification of all indentures is undertaken in many ways, among which AML, CTF and KYC can be distinguished. This consents banks to ensure the reliability and pecuniary stability of the future client.

Pecuniary institutions located in the polity may require fees and service charges. You may have to remunerate extra for each transaction. Before you start initiating an account in HK, you should familiarize yourself with the policies of all banks. This will authorise you to make the best decision.

List of the top banks in HK

Initiate an account in HK in large banks with a good image. The list of the best options includes:

1. HSBC. Among the most prime in the region. It works with 45 million clients from 70 different territories. Offers a wide range of aids. To open an account, you will have to deposit 10,000 HKD (1,285.41 USD). The monthly fee is 150 HKD (19.28 USD). If the balance is more than 1 million HKD (128,541.10 USD), then you do not have to pay a fee. However, you can make no more than 6 transfers per month. If you exceed the limit, then you will have to remunerate 15 HKD (1.93 USD) for a remuneration within the polity. A fee of 65 HKD (8.36 USD) is charged for transnational transactions.
2. OCBC Wing Hang Bank. Among the largest banks in the world. Licit entities that decide to open a commercial IT company in Hong Kong can open a trade account. Each client is given the opening to enter Internet banking. Notifications can be sent to both the phone and e-mail. This simplifies monitoring the pecuniary status of the firm.
3. Standard Chartered Bank. A well-known bank with a transnational license. To initiate an account for forming an IT firm in HK, you will need to deposit 7779 HKD (1000 USD) into the balance. To keep the account operational, you should be active. Incoming remunerations will be subject to a fee of 46.68 HKD (6 USD), and outgoing remunerations - 171.15 HKD (22 USD).
4. DBS Bank. You can register for an account to register an IT firm in HK online. However, you need to fill out all the indentures in person. At the account opening stage, you should deposit 17893.11 HKD (2300 USD) into the balance. The monthly service fee is up to 70.02 HKD (9 USD). If the remuneration is made in the amount of up to 38898.06 HKD (5000 USD), the commission is 194.49 HKD (25 USD). If a larger amount is transferred, it is 233.39 HKD (30 USD).

If you are planning to launch an IT business in Hong Kong, then you should approach the choice of a bank thoroughly. The convenience of using the account contingent on it.

Business aid plans

To enroll an IT mercantile in the polity with leverages, you can become a participant in distinct trade support plans. The most relevant is the acceleration program. It is designed for new projects in any industry. Participants can enjoy the leverages of the plan for two years. They get funding in an amount not exceeding 4.8 million HKD (616997.28 USD).

The money can be utilised to cover all of the firm’s expenses. You will also have to enter financiers to extend the funding. The program supplies aid in preparing indentures and deals, equally assistance in negotiations with financiers. To participate, you must register a novel IT trade in the polity, and the headquarters and overseer must be local. The optimal value of workers is no more than 100 people.

The program is designed to simplify it to set up an IT firm in the polity. It is relevant for those who do not have enough funds to start a trade. Before enrolling, it is better to familiarize yourself with all the prerequisites in advance.

Many financiers wonder what kind of IT firm to create in HK. Any plan can be undertaken in the supervisory district. However, the greatest demand is for IT firms and digital products.

The list of promising trade areas includes:

1. Artificial intelligence. If you decide to incorporate an IT company in Hong Kong that is engaged in this area, you will be able to get additional leverage from the directorate. Yearly, the number of enterprises related to this area is growing.
2. IoT. This technology is applicable in many areas. You have the opening to create an IT company in Hong Kong that specializes in installing smart homes, automated vehicles, and more.
3. Cybersecurity. It is suggested to enroll a licit entity in HK that wants to engage in the protection of classified information. Therefore, you will be able to get official permission to operate more quickly.

If you start an IT firm in the territory, you can appreciate the dynamism of the sector, and it has many prospects to become among the central ones. Today, the region is famous for working on improving innovation. The polity is engaged in the development of startups. Therefore, it is not surprising that the number of new firms engaged in technology is growing. The majority of them work in the field of artificial intelligence.

Most educational institutions located in the supervisory district have their own innovative projects in development. It is also possible to develop IT business in Hong Kong due to the growing popularity of digital transformation. Therefore, the demand for aids that consent you to protect digital data is only growing.

Another prospect for the enhancement of an IT company in Hong Kong is that the supervisory region cooperates with most major territories, constantly strengthening the online network with India and China. Therefore, you will be able to reach a higher level, boosting your own profit. An undoubted leverage is the availability of private and public programs that consent new IT firms to develop.

Now is a good time for the development of IT companies in Hong Kong. Most likely, the demand for experts in this field will only increase, which will bring good returns.

The Bureau of Innovation and Technology was formed in the supervisory district. Its main specialization is to promote the formation of the right environment in which technologies can develop. Therefore, it is not surprising that the number of programs aimed at financing this area is constantly growing.

Many people decide to register a licit entity in HK in order to gain the opening to enter the transnational arena. This is explained by the fact that this territory and mainland China have signed an undertaking guaranteeing their close cooperation. This state of affairs supplies the opening for free trade. The polity has also signed an identical undertaking with other territories.

Last year, 960 firms from other territories decided to start trading in this territory. There are 14,826 of them in total. More than 132,000 firms decided to open their IT business in Hong Kong last year. This list includes both local and transnational firms. This figure has increased by more than 2% compared to other years.

The polity's GDP indicators are constantly growing. In 2024, it increased by 3.5%. The inflation rate is at 1.4%.

Conclusion

Registering an IT company in Hong Kong is an opening to enter the transnational trading field and earn a decent profit. It supplies pecuniary stability, as well as market freedom. The simplicity of enrollment is noted, because there is no bureaucracy. Thanks to this, you can quickly launch the work algorithm, as well as develop your trade in the shortest possible time.

The leverage of registering an IT trade in the polity is the low levy rate. Most of the deductions to the polity's treasury for trade are completely absent. To go through all the stages, you need to carefully approach the algorithm of collecting records. It is imperative that all indentures comply with the prerequisites of local authorities. If possible, check in advance whether you can receive pecuniary assistance from various funds. This will significantly speed up the algorithm of getting certificates.

The polity remains a premier destination for firm enrollment, providing a trade-friendly environment, attractive excise regime, and transnational trading field entry. By following the correct enrollment algorithms and meeting compliance prerequisites, financiers can leverage the polity’s pro-trade policies and pecuniary infrastructure for long-term success.

If you need support in registering an IT company in Hong Kong, it is better to contact our specialists. We have extensive experience in correctly drafting all indentures. Experienced lawyers will help you transfer to servicing a transnational firm, which will save you from having to do all the work yourself.