Formation

A Hong Kong company for an e-commerce brand and how it works

By the Atiko team · Last reviewed October 2026

Hong Kong has long been used as a base for trading businesses, and many e-commerce brands that source products in Asia consider it for that reason. The usual vehicle is the private company limited by shares, registered with the Companies Registry. It can be owned and directed entirely by people who live elsewhere.

A Hong Kong company has a different rhythm from a US LLC or a UK limited company. It needs a local company secretary, its accounts are audited every year, and its tax system is territorial. This guide explains each of these features and the order in which a company is set up. It contains no advice on whether Hong Kong suits your business, which is your decision to make with licensed professionals.

The structure in outline

A private company limited by shares is a separate legal entity. It owns its assets and bears its own liabilities, and the shareholders’ exposure is limited to the amount unpaid on their shares. It is governed by its articles of association and by the Companies Ordinance.

The minimum requirements are simple. The company needs at least one director who is a natural person and at least one shareholder. Neither needs to live in Hong Kong, and the same individual can hold both positions. Two requirements are local. The company must have a company secretary based in Hong Kong and a registered office in Hong Kong.

• At least one director who is a natural person
• At least one shareholder
• A company secretary based in Hong Kong
• A registered office in Hong Kong

The company secretary and the registered office

The company secretary is an officer of the company with statutory responsibilities. The secretary maintains the company’s registers and records, prepares and submits filings to the Companies Registry and helps the directors meet their legal obligations. The secretary must be an individual resident in Hong Kong or a company with a place of business there. A sole director cannot also act as the secretary.

The registered office is the company’s official address, where notices and correspondence from the authorities are delivered and where statutory records are normally kept. It must be a physical address in Hong Kong. For a founder abroad, both functions are provided locally, and both must stay in place for as long as the company exists. A lapse in either puts the company in breach of its obligations.

Incorporation and the two certificates

Incorporation starts with the choice of a company name, which must not duplicate one already on the register. The application to the Companies Registry sets out the registered office, the directors, the company secretary, the founding shareholders and the share capital, and it is accompanied by the articles of association. The company’s reporting currency and share currency are decided here as well.

Hong Kong combines company registration with business registration. The Certificate of Incorporation, issued by the Companies Registry, and the Business Registration Certificate, issued under the Inland Revenue Department, are issued together. Banks and payment providers ask for both. Typical timing is a few working days once the file is complete, and the Registry decides when the certificates are released. Government fees are set by the registry, are the same whoever files, and are shown separately from Atiko’s own fee.

How territorial taxation works

Hong Kong taxes profits on a territorial basis. Profits tax applies to profits arising in or derived from Hong Kong. The standard corporate rate is 16.5%, and under the two-tier regime a rate of 8.25% applies to the first HK$2 million of profits. There is no VAT or sales tax in Hong Kong.

The territorial principle is frequently misunderstood. It does not mean that a company owned by non-residents is automatically untaxed. Where profits arise is a question of fact, decided by looking at the operations that produce them, such as where contracts are negotiated and concluded and where the business is actually run. A company that considers its profits to arise outside Hong Kong makes that claim to the Inland Revenue Department, which may ask for detailed evidence and makes its own decision. The tax rules of your country of residence also apply to you. An independent licensed professional should assess both.

Opening a bank account

Banking is usually the step that requires the most preparation for a Hong Kong company. Institutions there conduct thorough due diligence, and they want to understand the business in practical terms: what it sells, who its suppliers and customers are, where money will come from and go to, and what connection the business has to Hong Kong or the region.

A clear business description supported by evidence such as supplier agreements, a working store and a realistic forecast of activity makes the review more straightforward. Some institutions offer remote onboarding, and others expect to meet a director. Multi-currency business accounts are common, which suits brands that pay suppliers in one currency and receive sales in another. Each institution decides independently whether to open an account, and no outcome or date can be promised.

Payment processing for a Hong Kong company

Stripe and Shopify Payments are available to Hong Kong companies, subject to each provider’s own verification. As elsewhere, the provider verifies the company through its two certificates, the people behind it through identity documents, the bank account that will receive payouts and the store itself, including contact details, refund and returns policy, shipping information, terms and privacy policy.

Requirements for the account representative vary and change, and they should be confirmed against the provider’s current rules before applying. The currencies in which a Hong Kong account can charge and be paid out are also set by the provider, and they are worth reviewing against the markets you sell to. Atiko is independent of both providers and prepares the application with you as the applicant.

Annual obligations and the audit

A Hong Kong company has four recurring obligations. It delivers an annual return to the Companies Registry, confirming its directors, secretary, shareholders and registered office. It renews its business registration. It prepares audited financial statements. It files a profits tax return with the Inland Revenue Department when one is issued to it.

The audit is the feature that most distinguishes Hong Kong from the other two jurisdictions discussed on this site. The financial statements must be audited by a certified public accountant practising in Hong Kong, whatever the size of the company. This requires proper bookkeeping throughout the year, with invoices, bank statements and contracts kept as supporting evidence. Founders should plan for the cost and discipline of an annual audit from the start. The audit and the tax return are performed by independent licensed professionals.

What e-commerce founders commonly choose it for

Founders who select Hong Kong commonly mention proximity to suppliers and manufacturers in Asia, a well-regarded legal system based on common law, the absence of VAT or sales tax in Hong Kong itself, multi-currency banking and access to major payment providers. Brands with regional trading activity often find that the structure fits how their goods and payments actually move.

Founders who decide against it commonly mention the annual audit, the more demanding bank onboarding and the need for a local secretary and office. Both sets of considerations are legitimate. Selling to customers in other countries also brings those countries’ rules into play, including sales tax in US states and VAT in the UK and the European Union. Atiko forms the company you decide on and does not recommend a jurisdiction.