What Does It Cost to Set Up a Hong Kong Company? Formation and Annual Costs, Line by Line

At a glance

Government fees and filing fees are as published by the Companies Registry and the Inland Revenue Department; our service fees are those shown on the pricing page and at checkout.

Government fees: the fixed part

This part is identical for everyone, whether you file yourself or use a provider. So the first question to ask about any quote is: does this price include the government fees?

Two things to note:

1. The business registration fee is set by the government annually and does change. The first-year fee at incorporation and the renewal fee are not necessarily the same, so do not budget as if it were fixed forever.

2. You can choose a three-year certificate. More upfront, lower per-year average.

Service fees: the part that varies

Formation service fees range widely, from a few hundred dollars to several thousand. But looking only at year one will mislead you.

Three common sources of gap:

1. The quote excludes government fees. Two “HK$999 company formation” offers can differ by nearly four thousand dollars depending on whether USD 501 is inside or outside the price.

2. Cheap first year, higher second. Nobody makes money on the incorporation itself; the recurring secretary fee is the business. Ask what years two and three cost.

3. Changes billed individually. Change of name, director, address, share allotment, issuing a certified document — some providers charge for each.

Our packages include the government fees and show the total at checkout; current fees for each service are on the pricing page.

What does it cost each year?

This is the part most people underestimate. Formation is a one-off. Maintaining the company is a fixed annual cost — regardless of whether you trade.

Add up your own situation:

Why can bookkeeping and audit not be quoted flat? Because the work differs enormously. A company with thirty invoices a month and properly classified books is a different job from one that hands over a bag of receipts — the auditor’s time can differ several-fold.

So the most effective way to reduce this is not shopping around; it is keeping the books in order. More on that below.

Do it yourself, or use a provider?

One thing to be clear about first: doing it yourself does not save the company secretary fee.

The law requires every company to appoint a secretary who is ordinarily resident in Hong Kong, or a body corporate with its registered office here — and a sole director cannot fill the role. So a one-person company has to appoint someone regardless.

So the real comparison is not “does it save money” but “how much time does it save, and how much risk does it add”. Doing it yourself means handling the name search, the NNC1 and the articles — and then still finding a secretary. If you have Hong Kong residency, time, and only one company to set up, doing it yourself is reasonable. Otherwise a package usually works out better, because the first year of secretary and address is already inside it.

Five charges that tend to appear later

1. Free first year, higher renewal. The most common. Confirm the year-two price before you order.

2. Government fees quoted separately. The headline looks much lower until you add USD 501 back.

3. Changes billed individually. Name, director, address, share allotment. If you expect any shareholder or director movement in the next year, ask first — changing the name and changing a director both carry statutory forms and deadlines, and getting either wrong means filing again.

4. Document certification. Non-resident clients especially — notarisation and legalisation are not cheap.

5. Exit costs. Deregistering has its own cost, and you must clear any outstanding filings before you can apply. Nobody mentions it at the point of sale, but it is a real line item. The difference between winding up and deregistration matters more than most founders expect.

Five things that actually reduce the cost

1. Start bookkeeping on day one. This saves the most. A tidy set of books costs materially less to audit than a bag of receipts, and you can see your numbers mid-year. See monthly versus once a year.

2. Keep personal and company money separate. Mixing them means the auditor cannot verify what belongs to the company, and all that reconstruction time becomes fee. See how to keep the two apart.

3. Do not miss deadlines. The annual return fee escalates with delay, and a late tax return triggers an estimated assessment — one penalty wipes out whatever you saved by shopping around.

4. One provider is usually cheaper than three. Secretary, bookkeeping and audit under one roof means nobody is waiting on anybody else at year end.

5. Add services when you need them. You rarely need everything in year one.

One thing that is not a way to save: splitting your business across companies so each can claim the two-tiered rate. Connected entities may only nominate one, and the split itself carries anti-avoidance risk. See the two-tiered rates.

Common questions

What is the minimum?

USD 501 in government fees is the floor and cannot be avoided. With the formation service fee, Essential starts at USD 604. But budget for the first year’s secretary, bookkeeping and audit as well.

What do I pay from year two?

Company secretary at USD 167, business registration renewal, the annual return fee, plus bookkeeping and audit.

If the company is not trading, do I still pay?

Yes. The annual return, audit and tax filing are all due whether or not you traded. What happens if you simply leave the company alone is a separate, more expensive question.

Can I add accounting services later?

Yes — but arrange it before the first financial year ends. Reconstructing a full year after the fact costs more in both time and fees.

Why can’t you quote the audit fee upfront?

It depends on transaction volume and the state of the books. See audit requirements for what drives it.

Do I need to rent an office?

No. A registered address service is sufficient, provided it is a physical Hong Kong address — PO boxes are not accepted.

Want the numbers for your own situation?

Tell us your transaction volume, whether you have employees, and whether you trade cross-border, and we can work out the real year-one and year-two totals — including “you don’t need that service yet” as an answer.

Talk to us, or get started.

This article is general information and does not constitute accounting or legal advice. Government fees, filing fees and statutory requirements are as published by the Companies Registry, the Inland Revenue Department and the Companies Ordinance; our service fees are those shown on the pricing page and at checkout.