How to register a company in Hong Kong: A guide for employers

Effortlessly expand into Hong Kong: Asia’s leading financial center

Hong Kong is one of the world’s most business-friendly destinations with simple company registration procedures, zero sales tax, and corporate tax as low as 8.25%.

While setting up a company in Hong Kong is relatively straightforward, businesses must comply with local regulations, tax requirements, and administrative procedures. Global companies, local expertise is often essential. This guide will walk you through the registration process and explain how an Employer of Record (EOR) like Multiplier can simplify your expansion into Hong Kong.

The business benefits of registering your company in Hong Kong

Hong Kong is a preferred business destination for international entrepreneurs. Here’s why many businesses choose to set up in this global financial center:

• Low tax system: Hong Kong offers a progressive corporate tax rate of 8.25% on the first HKD 2 million in profits and 16.5% thereafter.
• No foreign ownership restrictions: 100% foreign ownership is permitted, meaning companies do not need local partners.
• Strategic location: Hong Kong provides direct access to Mainland China and other ASEAN markets, facilitating global trade.
• Free market economy: Hong Kong is an attractive destination for investors because it has no capital gains tax, no sales tax, and a free flow of goods and capital.
• Efficient banking system: Businesses benefit from an international banking environment and seamless online banking services.

Given these advantages, businesses have two primary ways to expand into Hong Kong—traditional company registration or leveraging an Employer of Record (EOR) for a more streamlined entry.

What is the difference between standard company registration and expanding through an EOR?

Businesses expanding into Hong Kong must decide between establishing a company or using an EOR solution. Here’s a comparison:

Aspect	Company registration	Employer of record (EOR)
Purpose	Establish a legal entity for long-term operations	Test new markets or manage remote teams without establishing a legal entity
Control	Full operations control	Limited control; EOR manages HR and administrative functions
Cost	High initial investment (registration, legal fees, etc.)	Predictable, bundled service fee
Compliance	Full responsibility for legal and tax compliance	EOR ensures compliance with Hong Kong labor laws.
Setup time	Several weeks to months	A few days to weeks
Scalability	Complex and time-consuming	Quick and flexible workforce adjustments

While direct company registration provides full control, using an EOR accelerates market entry, helping businesses reduce costs, minimize compliance risks, and scale efficiently.

How an EOR simplifies Hong Kong company registration

Expanding into Hong Kong requires businesses to comply with tax regulations, employment laws, and banking requirements. An EOR like Multiplier simplifies expansion, handling hiring, compliance, and payroll:

• Faster market entry: Skip the lengthy registration process and start operating in days instead of months.
• Tax and legal compliance: Ensure compliance with Hong Kong’s labor laws, payroll taxes, and statutory contributions.
• Reduced costs: Avoid costly legal fees, entity setup, and office expenses.
• Seamless payroll & benefits management: Manage salaries, benefits, and tax filings through a unified platform.
• Operational focus: While the EOR handles compliance, HR, and global payroll, businesses can focus on growth and operations.

If you’re testing the Hong Kong market, hiring one or two people, or avoiding the time/cost of registration, EOR is the smarter move.

However, company registration may be essential if your business plans to set up a permanent office in Hong Kong, import or export goods under its name, or register for specific licenses. In the next section, we outline this process.

A step-by-step guide to registering a company in Hong Kong

Businesses opting for traditional company registration must follow these seven steps:

Step 1: Choose a business structure

Selecting the right structure impacts liability, taxation, and operational flexibility. Common structures include:

• Private Limited Company (Ltd.): The most common structure, offering limited liability and tax benefits.
• Sole Proprietorship: Suitable for small businesses, but owners have personal liability.
• Branch Office: A foreign company’s extension in Hong Kong, requiring local business registration.

Step 2: Register your business name

• Conduct a name availability search through the Hong Kong Companies Registry.
• Ensure compliance with naming guidelines and trademark regulations.

Step 3: File incorporation documents

• Submit the Articles of Association and Incorporation Form (NNC1/NNC1G).
• Pay the incorporation fee (varies by company type).

Step 4: Open a corporate bank account

• Choose a local or international bank and submit the necessary documents.
• Deposit initial share capital (if applicable).

Step 5: Obtain a Business Registration Certificate (BRC)

• Register with the Inland Revenue Department (IRD).
• The BRC must be renewed annually.

Step 6: Register for taxation

• Obtain a Tax Identification Number (TIN) from the Hong Kong Inland Revenue Department.
• Corporate tax rates in Hong Kong are low, with no VAT or sales tax.

Step 7: Register for employee benefits

If hiring employees, businesses enroll them in Hong Kong’s Mandatory Provident Fund (MPF) for pension contributions.

While Hong Kong’s streamlined online registration process makes company formation accessible for global firms, navigating ongoing compliance requirements can be complex.

If you want to hire talent in Hong Kong quickly, instead of dealing with company incorporation, corporate tax filings, or securing local permits, partner with an EOR. The EOR will act as your legal employer, onboarding employees, managing payroll, and complying with Hong Kong’s labor laws, helping you significantly reduce your risks and expenses.

The real cost of registering a business in Hong Kong

Understanding the financial commitments involved in setting up a company in Hong Kong is essential for proper budgeting. How much does it cost to register a business in Hong Kong?

Here’s a breakdown:

• Business name registration fee: HKD 250–HKD 300
• Company incorporation fee: HKD 1,730 (for private companies limited by shares)
• Notary and legal services: HKD 3,000–HKD 8,000
• Bank account setup: Free to HKD 2,000 (depending on the bank)
• Accounting and annual maintenance: HKD 5,000–HKD 10,000 annually
• Business registration certificate (BRC): HKD 2,000 (renewable annually)

Cost savings with an EOR

EORs converts all these expenses into a single predictable fee. Below is a cost comparison between both approaches:

Cost comparison: Standard registration vs. EOR

Cost category	Company registration (HKD)	EOR with Multiplier (HKD)
Setup fees	HKD 8,000–HKD 15,000	HKD 0 (covered by EOR)
Legal documentation	HKD 5,000–HKD 10,000	Included
Payroll & compliance	HKD 2,000–HKD 5,000/month	Included
Ongoing maintenance	HKD 3,000/year	Included
Time investment	3–6 months	2–4 weeks

Note: The cost comparison above is a general overview. Actual expenses may vary based on your country of operation and industry. Talk to our team at Multiplier for a clear comparison of costs tailored to your business needs.

Take the stress out of your Hong Kong expansion with Multiplier

Expanding into Hong Kong can be challenging, but Multiplier’s EOR solutions offer a compliant, hassle-free, and cost-efficient alternative.

Why choose Multiplier?

• Local hiring expertise: Easily onboard skilled professionals in Hong Kong and generate compliant employment contracts in minutes.
• Effortless payroll management: Accurately process salaries and ensure 100% compliance with Hong Kong’s tax and labor laws.
• Comprehensive HR solutions: Seamlessly manage employee benefits, tax filings, and payroll.
• Regulatory compliance assurance: Stay compliant with Hong Kong’s employment regulations.
• Attractive benefits packages: Offer competitive, localized benefits to attract and retain top talent.

Book a demo today and discover how Multiplier’s EOR services have helped businesses like yours expand into Hong Kong efficiently and effortlessly.