How Vietnam Companies Can Do Hong Kong Company Registration

In today’s interconnected economy, globalization has opened new doors for cross-border trade and investment between Vietnam and Hong Kong. Over the past decade, bilateral trade has grown rapidly, with Hong Kong becoming one of Vietnam’s top trading partners and a strategic gateway for Vietnamese products entering the global market.

Hong Kong’s position as a leading financial and business hub, combined with its investor-friendly environment, makes it an attractive destination for Vietnamese companies looking to expand internationally. Its proximity to Mainland China, efficient infrastructure, and transparent legal framework provide a strong platform for growth. This guide will walk Vietnamese business owners through the key benefits, promising investment sectors, available business structures, and essential considerations when registering a company in Hong Kong.

Key Benefits of Registering a Company in Hong Kong for Vietnam Businesses

Strategic Gateway to Mainland China and Asia

Hong Kong offers Vietnamese businesses unparalleled access to Mainland China and the Greater Bay Area—one of the fastest-growing economic regions in the world. Its world-class port facilities, extensive air cargo network, and frequent direct flights between Hong Kong and major Vietnamese cities such as Ho Chi Minh City and Hanoi make trade and business travel seamless.

For Vietnamese exporters, Hong Kong is not only a prime distribution hub but also a springboard to reach other high-potential Asian markets.

Vietnam–Hong Kong Economic Partnership

Economic cooperation between Vietnam and Hong Kong is thriving, particularly in sectors like textiles, manufacturing, seafood, electronics, and IT services. The Vietnam–Hong Kong Double Taxation Agreement (DTA) ensures that companies are not taxed twice on the same income, making cross-border operations more profitable and efficient.

This agreement, combined with Hong Kong’s free trade policies, gives Vietnamese companies a competitive edge when entering regional and global markets.

Investor-Friendly Environment

Hong Kong is consistently ranked among the world’s most business-friendly economies. With political stability, a transparent regulatory environment, and a reliable legal system based on common law, Vietnamese businesses can operate with confidence. The absence of foreign ownership restrictions also allows full control over company operations.

Low and Simple Tax Regime

Hong Kong’s low tax structure is one of its biggest advantages:

• Two-tier profits tax: 8.25% on the first HKD 2 million of assessable profits, and 16.5% on profits above that.
• No VAT or GST – reducing operational costs.
• No capital gains tax – ideal for asset sales and investments.
• No withholding tax on dividends – enabling smooth profit repatriation to Vietnam.

Offshore profits are typically tax-free, but companies must apply for and substantiate an “offshore claim” with the Inland Revenue Department.

Key Sectors for Vietnamese Investment in Hong Kong

• Import & Export Trade – Particularly for Vietnamese textiles, electronics, seafood, and coffee, leveraging Hong Kong’s status as a re-export hub to Mainland China and beyond.
  
• Logistics & Supply Chain – Establishing a Hong Kong presence allows Vietnamese companies to optimize shipping routes and benefit from the city’s free port advantages.
  
• Technology & IT Services – Hong Kong’s growing fintech and startup ecosystem presents opportunities for Vietnamese tech firms to expand regionally.
  
• Tourism & Hospitality – Targeting Chinese outbound tourists by offering unique Vietnamese travel experiences or hospitality services.
  
• Food & Beverage – Bringing Vietnam’s rich culinary heritage, from pho to specialty coffee, to Hong Kong’s multicultural dining scene.
  

Hong Kong Business Structures for Vietnam Companies

When entering the Hong Kong market, Vietnamese companies have several incorporation options depending on their business objectives, level of investment, and desired operational control. Choosing the right structure from the start can save time, reduce costs, and ensure regulatory compliance.

Private Limited Company (Ltd)

This is by far the most common choice for Vietnamese entrepreneurs and corporations expanding to Hong Kong.
Key Features:

• Separate Legal Entity – The company is legally independent from its owners, meaning liability is limited to the company’s assets.
  
• Full Foreign Ownership – 100% ownership by Vietnamese shareholders is allowed; no local partner is required.
  
• Tax Benefits – Eligible for Hong Kong’s low corporate tax rates and the Vietnam–Hong Kong Double Taxation Agreement (DTA).
  
• Ease of Operations – Can open a local bank account, sign contracts, hire employees, and trade freely.
  

Best For:

• Vietnamese companies that want a permanent presence in Hong Kong.
• Businesses engaged in trading, services, technology, or investment activities.
• Those seeking credibility with suppliers, partners, and financial institutions.

Branch Office

A Branch Office is an extension of the Vietnamese parent company and operates under its legal identity.
Key Features:

• Not a Separate Legal Entity – The parent company in Vietnam is fully liable for debts and obligations.
  
• Name Must Match Parent Company – No separate brand identity for the branch.
  
• Same Business Scope – Can only engage in activities the parent company is already authorized to conduct.
  
• Subject to Hong Kong Taxes – Profits generated in Hong Kong are taxed locally.

Best For:

• Vietnamese companies that want to maintain a unified corporate identity.
• Large corporations testing the market without creating a new subsidiary.
• Businesses where branding consistency is critical, such as manufacturing or B2B services.
  

Representative Office (RO)

A Representative Office is a non-profit-making entity intended for market research and liaison purposes.
Key Features:

• Cannot Conduct Direct Sales or Profit-Making Activities – Limited to research, networking, promotion, and administrative functions.
  
• No Tax Liability – Since it cannot generate income, an RO is generally not subject to Hong Kong corporate tax.
  
• Simplified Setup – Less paperwork and fewer compliance obligations compared to other structures.
  

Best For:

• Vietnamese companies exploring the Hong Kong market before full-scale entry.
• Businesses conducting feasibility studies, building relationships, or sourcing suppliers.
• Firms looking for a low-cost way to establish a local presence without major financial commitments.

Many Vietnamese businesses start with a Representative Office to gather market insights, then upgrade to a Private Limited Company once they are ready for full commercial operations. This staged approach reduces risk while ensuring a smooth transition into Hong Kong’s competitive market.

Step-by-Step Guide to Registering a Business in Hong Kong

Registering a company in Hong Kong is a straightforward process, but careful preparation ensures faster approval and compliance. Here’s a clear roadmap for Vietnamese entrepreneurs:

1. Choose a Business Name
   
   • The name must be unique and comply with the Hong Kong Companies Registry naming rules.
   • You can register in English, Chinese, or both.
   • Avoid names that imply government affiliation or require special licensing without approval.
     
2. Select a Legal Structure
   
   • Decide whether to register a Private Limited Company, Branch Office, or Representative Office based on your business goals and operations.
     
3. Prepare Required Documents
   
   • Details of directors and shareholders (at least one of each).
   • Articles of Association outlining your company’s rules and governance.
   • A registered Hong Kong office address (cannot be a P.O. Box).
   • Details of your company secretary (individual or corporate) based in Hong Kong.
     
4. File Application
   
   • Submit your application to the Companies Registry either online or in person.
   • Pay the applicable incorporation fee.
     
5. Obtain Business License
   
   • All companies must obtain a Business Registration Certificate (BRC). Certain industries — such as food & beverage, finance, or logistics — require additional sector-specific licenses before commencing operations.
     
6. Open a Corporate Bank Account
   
   • Prepare the incorporation documents, proof of address, and identification for all directors and shareholders.
   • Most Hong Kong banks require at least one director to attend an in-person meeting to complete the account opening process. Opening timelines can be several weeks to months due to AML/KYC checks — important for Vietnamese SMEs planning cash flow.

Read: How To Set Up a Company in Hong Kong 

Documentation Requirements & Compliance for Vietnamese Companies

To incorporate successfully, Vietnamese businesses must prepare the following:

• Proposed Company Name – in English, Chinese, or both.
  
• At least 1 Director and 1 Shareholder – can be individuals or corporate entities, and non-residents are permitted.
  
• Registered Hong Kong Office Address – must be a physical address, not a P.O. Box.
  
• Articles of Association – detailing your company’s governance structure.
  
• Company Secretary – must be a Hong Kong resident or a registered corporate services provider.
  
• Translation Considerations – Many official documents are in English or Chinese. For Vietnamese companies, accurate Vietnamese–English–Chinese translations are crucial to avoid misinterpretation in legal agreements and filings.

FastLane Tip: We help Vietnamese companies ensure documents meet Hong Kong’s legal requirements while providing bilingual support for smoother cross-border communication.

Operational Setup Essentials

Expanding your Vietnamese business to Hong Kong isn’t just about registration — it’s about setting up your operations effectively so you can start trading seamlessly.

Business Location Strategy

• Physical Office – Ideal for companies that require a client-facing presence, such as trading houses, import/export agents, or F&B outlets. Locations in Central, Tsim Sha Tsui, or Kowloon East are popular for international businesses.
  
• Virtual Office – Cost-effective for startups and SMEs entering the Hong Kong market for the first time. Virtual offices provide a professional address, mail forwarding, and sometimes receptionist services without the overhead of physical space.
  
• Co-Working Spaces – Perfect for tech startups or service-based companies looking to network. Hong Kong has vibrant co-working hubs like WeWork, The Hive, and Garage Society that attract entrepreneurs and regional business partners.
  

Tip for Vietnamese Companies: Many businesses start with a virtual office or co-working membership before upgrading to a permanent lease once their client base grows.

Hiring & HR Compliance

When hiring in Hong Kong, Vietnamese companies must comply with local employment laws to avoid fines and protect their reputation.

• Mandatory Provident Fund (MPF) – All employers must contribute to this retirement scheme for eligible employees. The standard contribution rate is 5% of the employee’s monthly income (capped at HKD 1,500).
  
• Employment Contracts – Must be clear and written in English or Chinese, outlining job duties, salary, working hours, leave entitlements, and termination clauses.
  
• Employee Benefits – Statutory annual leave starts at 7 days and increases with years of service. Sick leave, maternity/paternity leave, and public holidays are also mandatory.
  

Tip: If your Vietnamese headquarters is seconding staff to Hong Kong, ensure work visas are arranged under the General Employment Policy (GEP).

Cross-Border Business Management

Running operations between Vietnam and Hong Kong requires careful coordination:

• Appoint a Local Director or Liaison – This person understands Hong Kong’s business environment and can respond quickly to local matters.
  
• Cloud-Based Operations – Use tools like Xero, QuickBooks, or Zoho Books for accounting; Asana or Trello for project management; and Zoom or Microsoft Teams for real-time meetings.
  
• Cultural Awareness – While business etiquette in Hong Kong is similar to other Asian markets, promptness, formality in meetings, and clarity in contracts are highly valued.

Taxation for Vietnamese Companies in Hong Kong

One of the main reasons Vietnamese businesses choose Hong Kong for expansion is its simple, low-tax regime. The city operates on a territorial tax system, meaning companies are only taxed on profits generated within Hong Kong. Income sourced from Vietnam or other overseas markets is generally exempt from Hong Kong tax, making it highly attractive for cross-border operations.

Low Corporate Tax Rates and Territorial Tax System

Hong Kong offers one of the most competitive corporate tax rates in Asia:

• 8.25% on the first HKD 2 million of assessable profits.
  
• 16.5% on profits above HKD 2 million.
  
• Only income earned in Hong Kong is taxable — offshore profits are typically tax-free, subject to meeting IRD’s offshore claims requirements.
  

For Vietnamese companies involved in regional trading, sourcing, or service provision, this can mean significant tax savings compared to Vietnam’s standard corporate tax rate of 20%.

No Capital Gains Tax and No VAT

Hong Kong does not impose capital gains tax, allowing companies to sell shares, assets, or investments without additional tax costs.
Additionally, there is no VAT or GST, which simplifies accounting and reduces administrative burden. This is particularly beneficial for trading companies handling high transaction volumes.

No Withholding Tax on Dividends

Profits earned in Hong Kong can be freely repatriated to Vietnam without withholding tax. This allows Vietnamese business owners to take profits home or reinvest internationally without extra tax deductions in Hong Kong.

Read: A Guide To Double Taxation Agreement Hong Kong Tax Treaties

Vietnam–Hong Kong Double Taxation Agreement (DTA) Benefits

Since August 2009, Vietnam and Hong Kong have had a Double Taxation Agreement (DTA) in place, offering further advantages for Vietnamese companies:

1. Avoidance of Double Taxation

Income taxed in Hong Kong will not be taxed again in Vietnam, provided it meets DTA requirements. This ensures businesses are not paying tax twice on the same income.

2. Lower Withholding Tax Rates on Interest Payments

The DTA reduces withholding tax rates on certain cross-border payments, such as interest, making financing arrangements between the two jurisdictions more cost-efficient.

3. Tax Credits for Taxes Paid in Hong Kong

If a Vietnamese company pays tax in Hong Kong, that amount can be credited against its tax liability in Vietnam, subject to Vietnamese tax regulations.

Example:
A Vietnamese furniture manufacturer sets up a Hong Kong subsidiary to handle international orders. Sales to the US and Europe are invoiced from the Hong Kong entity. Profits from these sales:

• Are taxed only in Hong Kong (at 8.25% or 16.5%).
• Are not subject to VAT or capital gains tax.
• Can be distributed back to Vietnam without withholding tax, while benefiting from DTA protection against double taxation.

Read: Foreigners’ Guide To Taxes For Expats In Hong Kong

Cultural and Business Practices for Vietnamese Entrepreneurs in Hong Kong

Expanding to Hong Kong means adapting to a business culture that blends global corporate practices with deep-rooted local traditions. Vietnamese entrepreneurs who understand these nuances will gain a competitive advantage.

• Business Etiquette – Formality & Professionalism
  Meetings are typically formal, and punctuality is taken seriously. Always use professional titles such as “Mr.”, “Ms.”, or “Dr.” followed by the surname until invited to use first names. Exchanging business cards with both hands is a sign of respect.
  
• Decision-Making & Hierarchy
  Hong Kong companies often follow a top-down decision-making process, especially in traditional industries. While Vietnam also values hierarchy, Hong Kong business leaders may expect more concise, data-driven presentations to speed up approvals.
  
• Negotiation Style Differences
  Vietnamese negotiations may focus on building rapport first, while Hong Kong professionals may be more direct and results-oriented. However, trust remains crucial—once an agreement is made, both sides expect strict adherence.
  
• Networking & Guanxi
  In Hong Kong, personal connections—or guanxi—can significantly influence opportunities. Attending industry events, trade shows, and joining chambers of commerce can help Vietnamese entrepreneurs establish lasting, mutually beneficial relationships.
  
• Gift-Giving Customs
  Small, thoughtful gifts are acceptable but avoid overly expensive items that may be perceived as bribery. Refrain from giving clocks (symbolizing death) or sharp objects (symbolizing severed relationships).
  
• English is widely used in business
  Vietnamese companies can operate without Chinese fluency but local language skills help in networking and government dealings.
  

Key Challenges and Solutions for Vietnamese Companies

Conclusion

Hong Kong remains one of the most attractive gateways for Vietnamese businesses aiming for international growth. Its pro-business environment, low tax regime, and strategic location make it an ideal hub for accessing the Greater Bay Area and global markets.

However, success in Hong Kong requires more than just registration—it demands compliance, cultural understanding, and strategic planning. By working with experienced corporate service providers like FastLane Group, Vietnamese entrepreneurs can navigate incorporation smoothly while focusing on business growth.

Let FastLane Group help your Vietnam business successfully establish a presence in Hong Kong. From company registration and corporate secretarial services to banking assistance and tax compliance, we ensure a seamless expansion process. Contact us today for a free consultation and start your Hong Kong incorporation journey with confidence!

FAQs

Q1: How long does it take for a Vietnamese company to register in Hong Kong?

Typically, it takes 5–7 working days once all documents are ready.

Q2: Do Vietnamese companies need a local director?

No, Hong Kong does not require directors to be local residents.

Q3: Is Hong Kong income taxed in Vietnam?

Under the Vietnam–Hong Kong DTA, businesses can avoid double taxation through tax credits or exemptions.

Q4: Can a Vietnamese company open a bank account in Hong Kong remotely?

Most banks require at least one in-person meeting, but some fintech banks (Airwallex, Payoneer) may allow remote onboarding.

Q5: What are the annual compliance requirements for Vietnamese companies in Hong Kong?

Filing of the Annual Return, maintaining audited financial statements, and fulfilling tax filing obligations are mandatory.