How To Set Up An Offshore Company In Hong Kong 2025 

Setting up an offshore company in Hong Kong has many advantages because of its favorable tax system and access to a vibrant global market. In this step-by-step guide, we will cover everything you need to know, from the registration process and required documents to the costs and key benefits. If you are looking to expand your business beyond borders, this guide is the perfect starting point.

What is a Hong Kong Offshore Company?

A Hong Kong offshore company is a company incorporated under Hong Kong law but primarily conducting its business activities outside of Hong Kong. Although these companies are officially registered in Hong Kong and recognized by the government, their operations are managed abroad.

Offshore companies in Hong Kong enjoy full legal standing and are governed by the same corporate laws that apply to local businesses. Hong Kong Offshore Companies are commonly set up for the following reasons: 

• International trading
• Holding and managing global investments and assets
• Consulting and advisory services for overseas clients
• E-commerce businesses targeting international markets
• Intellectual property holding and licensing

Why Set Up An Offshore Company In Hong Kong 

Here are some of the key reasons why Hong Kong is a top destination for offshore company set up:

1. Business-Friendly Legal System

Hong Kong follows a common law legal system based on English law which provides a stable, transparent, and well-established framework for businesses. Strong legal protections for property rights and contracts make Hong Kong a trusted jurisdiction for international operations.

2. An advantageous tax structure 

In Hong Kong’s territorial taxation law, only incomes generated within or derived from Hong Kong are taxed. Hence, profits that offshore companies make outside Hong Kong will not be taxed in Hong Kong. This could give rise to companies that would have to plan their financial activities in such a way that they best manage their tax obligations.

3. Asset protection

Hong Kong offers robust legal protections for assets. This is especially important for businesses in high-risk industries or those managing substantial investments.

4. Flexibility in operations

They are not limited by the usually strict rules and regulations and the complex administrative systems like other nations. This flexibility can prove to be beneficial for companies which need to react rapidly to the market trends or business prospects that crop up without notice.

5. Access to international markets

Hong Kong is a gateway to Asian markets, by which a business can expand its operations to mainland China and the broader Asia-Pacific region. Due to its geographic position, Hong Kong plays a key part as an international business center, and organizations can use their Hong Kong subsidiary to develop ties with partners and enter new markets globally.

Who is Eligible to Start an Offshore Company in Hong Kong?

One of the biggest advantages of incorporating an offshore company in Hong Kong is its open and inclusive regulatory environment. The jurisdiction welcomes both local and international entrepreneurs, making the process highly accessible to a global audience.

Eligibility Criteria

You are eligible to start an offshore company in Hong Kong if you meet the following basic conditions:

• You are 18 years or older.
• You have a valid identification document (e.g., passport or identity card).
• You can provide a residential address and proof of address.
• Your business operations are primarily conducted outside of Hong Kong.
• You are able to appoint at least one director and one shareholder (can be the same person).

Hong Kong allows 100% foreign ownership which means non-residents can own and operate a Hong Kong offshore company without needing a local partner or shareholder.

Best Candidates for Offshore Company Formation

Hong Kong offshore companies are particularly well-suited for:

• Entrepreneurs and startups entering global markets
• E-commerce businesses with customers outside Hong Kong
• Consulting or service-based firms providing services to international clients
• Holding companies managing overseas assets or intellectual property
• Trading companies sourcing or selling goods internationally
• Freelancers or digital nomads managing income from various global clients

If your business activities do not require a physical office or sales presence in Hong Kong, and your revenue is earned from abroad, forming an offshore company in Hong Kong may be a strategic move.

Key Requirements to Set Up a Hong Kong Offshore Company

Although setting up an offshore company in Hong Kong is a relatively streamlined process, there are specific legal and administrative requirements you must meet to remain compliant.

1. Company Name Guidelines

Your company name must be:

• Unique and not already registered in Hong Kong
• In English, Chinese, or both (Chinese names must use traditional characters)
• Not misleading or suggesting a connection with government bodies

You can check name availability through the Hong Kong Companies Registry.

2. Director and Shareholder Requirements

• At least one director is required. The director can be an individual or a corporate entity.
• At least one shareholder is also required. One person can act as both director and shareholder.
• Directors and shareholders can be any nationality and do not need to reside in Hong Kong.

3. Company Secretary

Appointing a Company Secretary is mandatory. The company secretary is responsible for maintaining statutory records, filing annual returns, and ensuring compliance with Hong Kong’s Companies Ordinance. The secretary must be either:

• A Hong Kong resident (individual), or
• A company secretarial services and registered in Hong Kong.

4. Registered Address

Your company must have a local registered address in Hong Kong which must be a physical address (not a P.O. Box). Many offshore companies use a professional service provider’s address for this purpose.

5. Minimum Share Capital

There is no minimum capital requirement, but typically companies are incorporated with a share capital of HKD 1 or more. The capital does not need to be paid up immediately, but it should be declared during incorporation.

6. Compliance for Offshore Tax Exemption

To qualify for offshore tax exemption, you must prove that:

• All income is generated outside of Hong Kong.
• You have no clients, suppliers, or operations within Hong Kong.
• You can provide supporting documentation, such as contracts, bank statements, and audited accounts showing offshore transactions.

Step-by-Step Process to Set Up an Offshore Company in Hong Kong

Step 1: Choose Your Company Structure and Name

First, decide on the company structure. Most offshore businesses in Hong Kong choose private limited companies due to their flexibility and limited liability protection. 

Then, choose a unique company name that is not identical or too similar to any existing Hong Kong registered company or trademark. You can verify name availability through the Hong Kong Companies Registry.

Step 2: Prepare and Submit the Required Documents

Prepare the necessary documents, including:

• Articles of Association (AoA)
• Incorporation Form (NNC1 for a company limited by shares)
• Copies of directors’ and shareholders’ identification documents
• Proof of registered Hong Kong address
• Appointment of a Company Secretary

Step 3: Complete the Company Incorporation Process

Submit the incorporation documents to the Hong Kong Companies Registry either electronically or in paper form.

Once approved, you will receive:

• Certificate of Incorporation
• Business Registration Certificate from the Inland Revenue Department (IRD)

The entire registration process typically takes around 4 to 5 working days if all documents are in order.

Step 4: Open a Business Bank Account 

A corporate bank account is essential for managing your offshore company’s finances and ensuring smooth international transactions. To open a business bank account in Hong Kong, you will generally need:

• Certificate of Incorporation
• Business Registration Certificate
• Articles of Association
• Proof of registered address
• Details and identification documents of directors, shareholders, and beneficial owners
• Business plan or proof of intended business activities

Some banks may require an in-person meeting, while others, especially digital banks and fintech providers, offer remote account opening options.

Step 5: Post-Incorporation Setup

After incorporation, you should:

• Create the company’s statutory records (e.g., registers of directors, shareholders)
• Issue share certificates
• Prepare the first board resolutions
• Apply for any additional licenses if required based on your business activities

Setting up a company properly from the beginning ensures smooth ongoing operations and regulatory compliance.

Compliance and Maintenance Obligations

After your offshore company is incorporated, it is important to meet Hong Kong’s ongoing compliance requirements to keep your business in good standing.

Annual Return Filing

Every Hong Kong company must file an Annual Return (Form NAR1) with the Companies Registry. This must be submitted within 42 days after the anniversary of the company’s incorporation date. The Annual Return contains up-to-date information about the company’s structure, such as the registered address, directors, shareholders, and share capital. Late filing can result in penalties, so it is advisable to monitor deadlines carefully or work with a professional company secretary.

Accounting and Auditing Requirements

Your company must maintain proper accounting records and prepare audited financial statements annually. Work with a Hong Kong Certified Public Accountant (CPA) for auditing. 

Business Registration Certificate Renewal

Renew the Business Registration Certificate (BRC) either annually or every three years, depending on the initial choice during incorporation. Renewal notices are typically issued by the Inland Revenue Department (IRD).

Ongoing Tax Obligations

Offshore companies must apply to the IRD to claim offshore profits tax exemption. Annual tax filings are still required even if the company earns no income within Hong Kong. It is essential to maintain evidence supporting offshore operations, such as contracts, invoices, and correspondence.

Registering For Offshore Tax Status In Hong Kong 

An offshore company in Hong Kong can claim an offshore profits tax exemption which is provided your business activities are conducted outside Hong Kong. Under Hong Kong’s territorial tax system, only profits sourced from within Hong Kong are subject to profits tax (currently at a rate of 8.25% or 16.5%).

If your company’s operations, customers, and transactions are all based outside of Hong Kong, you may apply for offshore tax exemption to avoid paying Hong Kong profits tax on foreign-sourced income.

How to Apply for Offshore Profits Claim

• Submit a Profits Tax Return: Your company must still file a tax return annually with the Inland Revenue Department (IRD), even if you are claiming offshore status.
• Prepare Supporting Documents: You must provide detailed evidence, such as contracts, invoices, shipping documents, and communications, proving that all profit-generating activities occur outside Hong Kong.
• Respond to IRD Enquiries: The IRD will typically issue a questionnaire or follow-up questions. A detailed and accurate response is crucial to successfully obtain offshore status.
• Wait for the confirmation: Once reviewed, the IRD will issue confirmation if they accept your claim for offshore profits exemption.

Key Considerations and Timelines

The offshore claim process can take 6 to 12 months depending on the complexity of your case and the responsiveness of your company. After your offshore status is approved, it is usually valid for 3 to 5 years but subject to review. Offshore companies have to be ready for periodic audits and maintain meticulous documentation to defend their offshore claims if needed.

Costs To Set Up and Maintain A Hong Kong Offshore Company 

Setting up Hong Kong offshore involves money, but a well-tackled budget of the expenses can be your best friend.

Initial setup costs

• Company Incorporation Fee: Government fees for company registration and obtaining the Business Registration Certificate (one-year or three-year option).
• Professional Service Fees: If you use a corporate service provider (recommended for foreign investors), packages typically include company registration, secretarial services, and registered address.

Maintenance and Compliance Costs

• Annual Return Filing Fee: Filing the NAR1 Annual Return with the Companies Registry.
• Business Registration Renewal: Renewal of Business Registration Certificate.
• Company Secretary Service: Mandatory appointment of a company secretary (outsourced services are common).
• Accounting and Audit Services: Annual audit by a certified public accountant (CPA) is required even if claiming offshore tax status.
• Tax Filing and Offshore Claim Support: Preparation and submission of tax returns, and handling offshore exemption applications.

Hidden Costs to Consider

• Bank Account Maintenance Fees: Some banks charge maintenance fees or require minimum balances.
• Additional Licenses: Specific business activities (e.g., financial services, import/export) may require extra licenses.
• Document Courier or Notarization Fees: For international documentation or remote company management.

Hong Kong Offshore Company Vs. Other Offshore Jurisdictions 

Conclusion 

Setting up an offshore company in Hong Kong can be a smart, strategic move for entrepreneurs, startups, and international businesses looking to expand their global presence. With its territorial tax system, world-class financial infrastructure, transparent legal environment, and access to Asian markets, Hong Kong offers unique advantages compared to other offshore jurisdictions.
However, success requires proper planning, compliance, and documentation especially if you intend to benefit from offshore tax exemptions. If you are considering expanding your business, contact FastLane Group today for a consultation. Our team of experts can guide you step-by-step in setting up and maintaining your offshore company in Hong Kong with ease and confidence.