Hong Kong combines a territorial tax system (0% on foreign-sourced profits), English common law, 100% foreign ownership and seamless access to Stripe, Wise and Airwallex — making it one of the best jurisdictions for digital business worldwide.
Why Hong Kong
Hong Kong has been a leading jurisdiction for international business for decades. It is not a classic offshore — it is a fully-fledged financial centre with an international reputation, recognised by banks, payment systems and business partners worldwide.
- Territorial tax — 0% on profits sourced outside Hong Kong
- Stripe / Wise / Airwallex — no restrictions, one of the most supported jurisdictions
- English common law — international legal standards, familiar to global partners
- 100% foreign ownership — no local partner or resident shareholder required
- No VAT — perfect for digital products, SaaS and services
- Global reputation — trusted by banks, PSPs and enterprise clients
Tax system
Hong Kong uses a territorial principle: only profits sourced in Hong Kong are taxed. Foreign-sourced income can be fully exempt.
| Income type | Rate |
|---|---|
| Offshore income (foreign-sourced) | 0% |
| Profits Tax — first HK$2M (~$250K) | 8.25% |
| Profits Tax — above HK$2M | 16.5% |
| VAT / GST | None |
| Dividend / capital gains tax | None |
0% offshore exemption is not automatic. You need to demonstrate that profits are foreign-sourced with proper documentation. A tax advisor is strongly recommended.
Who it is for
- IT & SaaS — most popular jurisdiction for subscription software and digital products
- E-commerce — Stripe, PayPal, Airwallex — all work without issues
- Crypto & Web3 — HK is building Asia's most progressive crypto regulation
- Fintech — international acquiring, PSP and payment infrastructure
- Agencies — marketing, development, consulting with international clients
- International trade — import/export and cross-border B2B transactions
Requirements to register
- Valid passport
- Proof of address (utility bill or bank statement)
- Company name (in English, ending in "Limited")
- Description of business activities
- Local Company Secretary (required by law — can be a service provider)
- Registered address in Hong Kong (can be provided by the agent)
A Company Secretary is mandatory under Hong Kong law. It is a standard service offered by incorporation agents, including on Marix.
Cost & timeline
| Service | Cost |
|---|---|
| Incorporation | from $800 |
| Annual maintenance | from $1,000/yr |
| Government fees | ~HK$2,000/yr |
| Registration time | 3–10 days |
| Bank / EMI account | days to weeks |
Pros & cons
Advantages:
- 0% tax on foreign-sourced profits
- No VAT, no dividend tax, no capital gains tax
- 100% foreign ownership — no local partner
- Stripe, Wise, Airwallex, PayPal without issues
- High international prestige — not treated as an offshore
- English common law — familiar to global partners
Disadvantages:
- Strict KYC/AML — banks carefully check source of funds
- Annual audit and reporting is mandatory
- Offshore exemption requires proper structure and documents
- Higher cost than classic offshore jurisdictions
Comparison with other jurisdictions
| Hong Kong | UAE | Singapore | |
|---|---|---|---|
| Corporate tax | 0–16.5% | 0–9% | 17% |
| VAT | None | 5% | 9% |
| Foreign ownership | 100% | 100% | 100% |
| Reputation | Very high | High | Very high |
| Banking | Good | Good | Excellent |
| Best for | Digital, SaaS, crypto | International business | Large business |
FAQ
Can I open a Hong Kong company remotely?
Yes, the entire registration process is done online. There is no requirement to physically visit Hong Kong to incorporate a company.
Do I need to visit Hong Kong to open a bank account?
It depends on the bank. Major traditional banks (HSBC, Hang Seng) typically require an in-person visit. Fintech solutions (Airwallex, Currenxie, Statrys) often open accounts remotely.
Can I connect Stripe to a Hong Kong company?
Yes, many IT and SaaS companies use an HK company specifically for Stripe, PayPal, Wise and other international payment systems. Hong Kong is one of the most widely supported jurisdictions.
What is offshore exemption and how does 0% tax work?
If a company's profits are sourced from activities outside Hong Kong (offshore-sourced income), they can be exempt from profits tax. This requires proper business structuring and documentary evidence of the foreign income source — it is not automatic and requires a tax advisor.
Is annual reporting mandatory for a Hong Kong company?
Yes. Even if the company has no activity in Hong Kong, an annual Profits Tax Return is required. Financial statements must also be audited.
Is Hong Kong suitable for crypto and Web3?
Yes. Hong Kong has been actively developing its regulatory framework for digital assets. In 2024–2026 authorities introduced exchange licensing and are building a pro-business environment for Web3. Many crypto projects use HK as their Asian base.