Hong Kong SAR is one of the world’s leading international business and financial hubs. With a strategic location in Asia, a low-tax regime, and an efficient legal system based on English common law, it continues to attract global enterprises. The city’s GDP was approximately USD 387 billion in 2024, with projected growth of 2.9% in 2025. Key sectors include finance, trading, logistics, fintech, professional services, and tourism.
Unlock growth opportunities in Hong Kong with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating Hong Kong’s often complex regulatory landscape with clarity and efficiency.
From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business.
Need to hire quickly before your entity is set up? We offer interim EOR services in Hong Kong, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR Structure to your own legal entity, without disrupting payroll or compliance.
Our experts stay ahead of regulatory changes to keep your operations aligned with Hong Kong’s employment and tax laws, helping you scale confidently and compliantly.
The most popular business structure in Hong Kong, accounting for over 90% of all incorporations. A private limited company provides limited liability protection, separate legal entity status, and operational flexibility. It can be owned entirely by foreign shareholders and directors, making it ideal for international expansion.
A branch office allows a foreign corporation to conduct business in Hong Kong as an extension of the parent company. The branch must register with the Companies Registry and operates under the same name as the overseas parent company, with unlimited liability extending to the parent.
A representative office can conduct limited business activities such as market research, liaison work, and business development. It cannot generate revenue directly in Hong Kong and is primarily used for preliminary market entry activities before establishing a more substantial presence.
Hong Kong does not require resident directors. Companies can be wholly owned and managed by foreign nationals. However, at least one director and one shareholder are required, and the same person can hold both positions.
A branch office must appoint at least one authorized representative who can be of any nationality. The representative must provide a Hong Kong address for service of documents.
A representative office must have a chief representative who can be of any nationality but must be authorized to represent the overseas parent company in Hong Kong.
Opening a business bank account in Hong Kong is straightforward but includes stringent due diligence:
Bank Account Setup in Hong Kong: What’s Possible and When
Before Incorporation:
After Incorporation:
Note: Hong Kong banks maintain strict compliance procedures and may require in-person meetings or video calls for account opening. The process typically takes 1-2 weeks once all documentation is provided and due diligence is completed.
Required documents include the Certificate of Incorporation, Business Registration Certificate, Memorandum and Articles of Association, directors’ and shareholders’ identification documents, proof of address, and business plan or commercial documents.
Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. The process typically takes a few days to a week, depending on the bank.
Employment in Hong Kong is primarily governed by the following laws:
Employment contracts should be in written form, though verbal contracts are legally valid for certain circumstances.
Some of the standard details mentioned in the written contract include:
The different types of employment relationships are:
Full-Time Employment
Full-time employees typically work 40-48 hours per week and are entitled to full statutory benefits and protections under Hong Kong employment law. They must have a continuous contract (working 68 hours or more in any 4-week period) to qualify for most statutory benefits.
Part-Time Employment
Part-time employees who work under a continuous contract (68 hours in 4 weeks) are entitled to most statutory benefits on a pro-rata basis. Those not meeting the continuous contract threshold have limited statutory protections.
Fixed-Term Employment
Fixed-term employment contracts have a specific end date and are commonly used for project-based work or temporary assignments. If renewed multiple times, they may be treated as permanent employment under certain circumstances.
In Hong Kong, a probationary period is typically set at 3 months but can extend up to 12 months depending on the seniority and nature of the position.
Hong Kong does not have statutory maximum working hours, but common practice is 40-48 hours per week spread over 5-6 days. The standard working day is typically 8-9 hours with meal breaks.
Overtime
Hong Kong employment law does not mandate overtime payment for most employees, unless specifically agreed in the employment contract. However, many employers provide overtime compensation as part of their employment packages.
Notice periods depend on length of service:
Severance payment is required for:
Long service payment applies to employees with 5+ years of service terminated for reasons not due to serious misconduct, redundancy, or resignation without cause.
Foreign nationals can live and work in Hong Kong by securing appropriate visa and work authorization. Hong Kong offers various immigration schemes for skilled professionals, entrepreneurs, and investors.
Work Visa & Permit Options in Hong Kong
1. General Employment Policy (GEP)
For skilled professionals to work in Hong Kong with a confirmed job offer.
2. Quality Migrant Admission Scheme (QMAS)
For highly skilled individuals to settle in Hong Kong without a confirmed job offer.
3. Investment Visa (Capital Investment Entrant Scheme)
For high-net-worth individuals making substantial investments in Hong Kong.
4. Entrepreneur Visa (GEP for Entrepreneurs)
For individuals establishing or joining start-up businesses in Hong Kong.
5. Top Talent Pass Scheme
Fast-track scheme for high-income earners and graduates from top universities.
Key Notes:
Work authorization eligibility depends on individual qualifications, job nature, and applicable immigration scheme requirements.
Employees under continuous contract are entitled to:
Annual leave must be taken within 12 months after becoming entitled.
Female employees receive 14 weeks of maternity leave with pay (10 weeks at four-fifths wages, 4 additional weeks at full wages subject to a cap).
Male employees are entitled to 5 days of paternity leave with pay.
Sick leave pay applies only after the first 4 consecutive days of medical leave, which must be supported by a medical certificate.
The following statutory national holidays are observed in Hong Kong:
Payroll frequency in Hong Kong is typically monthly though some companies pay bi-weekly or weekly for certain positions.
Hong Kong does not legally require a 13th month salary or mandatory bonus, but many employers provide discretionary year-end bonuses as part of their compensation packages.
Employees in Hong Kong are required to contribute to mandatory social security schemes, which provide retirement and work injury protection.
The mandatory benefits in Hong Kong include:
Note: Some employers provide additional voluntary benefits such as medical insurance, dental coverage, and enhanced retirement contributions to attract and retain talent.
Accounting standards must adhere to Hong Kong Financial Reporting Standards (HKFRS) which are substantially aligned with International Financial Reporting Standards (IFRS) and Hong Kong Standards on Auditing (HKSA). Small and Medium-sized Entity Financial Reporting Standard (SME-FRS) for qualifying entities.
Companies in Hong Kong must file annual returns and maintain proper books and records:
Statutory audit requirements in Hong Kong:
Audit Exemption Criteria:
Companies may be exempt if they meet small company criteria, and shareholders unanimously agree to waive audit requirement.
Hong Kong has a territorial tax system with a two-tiered profits tax structure:
Hong Kong does not impose value-added tax (VAT), goods and services tax (GST), or sales tax, making it a favourable jurisdiction for trading activities.
Filing dates are due 1 month after issue (typically May for March year-end companies).
Penalties include a monetary fine of HK$1,200 for individuals, HK$3,000 for corporations and for late payment a 5% penalty after due date, and an additional 5% after 6 months. Additionally, tax up to 3 times the tax undercharged.
Hong Kong has implemented transfer pricing rules:
Hong Kong has implemented CbC reporting requirements:
Transfer pricing documentation requirements:
Master File
Local File
Deadline: Documentation available within 30 days of request by Inland Revenue Department.
Hong Kong’s data protection is governed by the Personal Data (Privacy) Ordinance (PDPO) enforced by the Office of the Privacy Commissioner for Personal Data.
Hong Kong’s AML framework is governed by the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO):
Regulated entities: Banks, securities dealers, insurance companies, money service operators, legal practitioners, accounting professionals, estate agents, and trust or company service providers.
Key requirements:
JFIU: Hong Kong’s financial intelligence unit that receives and analyzes suspicious transaction reports
Penalties: Criminal sanctions up to 7 years imprisonment and unlimited fines, civil penalties up to HK$10 million for institutions.
Reasons you should setup legal entity in Hong Kong:
Cerity Global ensures your business expansion in Hong Kong is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks.
Economic figures are subject to change based on quarterly reports and market conditions.
Cerity Global combines deep local knowledge with proven expertise to make your Hong Kong business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in Hong Kong.
Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location.
To discuss your needs and how we can help you achieve a compliant and efficient expansion.