How much does it cost to open a company in Hong Kong? A comprehensive analysis of the expenses for limited companies and unlimited companies.
The minimum cost to set up a sole proprietorship in Hong Kong is about HK$2,200; the minimum for a limited company is about HK$3,745 (government fees only, electronic application). Including necessary expenses such as stamps, address, and first-year secretary, the actual budget is recommended to prepare HK$8,000–$15,000.
Summary of key points
- The minimum government fee for a limited company is HK$3,745 (electronic application)
- An unlimited company only requires business registration, with a minimum of HK$2,200
- Starting from April 1, 2026, the business registration fee will be reinstated, and the one-year fee will increase to HK$2,350.
- It must be confirmed whether the agency package includes government fees to avoid additional charges later.
- It is recommended to set the capital at HK$10,000, balancing the perception of bank account opening and controlling shareholder liability.
Limited company vs. sole proprietorship: What are the differences in startup costs?
The fundamental reason for the cost difference between the two lies in the different registration requirements. A limited company must register with both the Companies Registry and the Inland Revenue Department, and is required to appoint a company secretary; an unlimited company only needs to apply for business registration with the Inland Revenue Department, resulting in lower costs. If you want to learn more about the detailed comparison of the two types of companies, you can refer to the article below.
Extended reading: "TheWhat is the difference between an unlimited company and a limited company? A lazy package on the registration process and costs of unlimited companies in Hong Kong》
Costs of setting up a limited company: Detailed explanation of each expense.
Government registration fee
Setting up a limited company involves two government fees, according to the latest official charging standards:
- Company registration fee (CR Fee).: Submit NNC1 form to the Companies Registry,Electronic applicationFor HK$1,545, the paper application is HK$1,720. If the application is not approved, the electronic application can be refunded HK$1,280, and the paper application can be refunded HK$1,425.
- Business registration fee (BR Fee).According tothe Business Registration Fee and Charge Schedule of the Taxation Bureau, the current and upcoming rates are as follows:
| Registration period | until March 31, 2026 | from April 1, 2026 |
|---|---|---|
| One-year term | HK$2,200 (fee exemption) | HK$2,350 (fee HK$150 reinstated) |
| Three-year term | HK$6,020 | HK$6,170 |
The total for both, the minimum government fee for electronic applications is HK$3,745If the application time is close to April 2026, completing the application before the end of March can save HK$150 in fees. Although choosing a three-year term incurs a higher initial expense, it can save about HK$150–$300 per year on average, and the administrative process is also more convenient.
Stamp and Green Box fees
The physical document set required for opening a limited company is commonly known as "Green Box", which usually includes the company's articles of association, share register, statutory record book, and company seal. According to the new Companies Ordinance, most banks currently only require a signature and company chop for account opening, without the need for a mandatory seal. The production cost is about HK$200–$800, and some agency packages have included this cost in their quotes.
Recommended capital amount
There is no minimum capital requirement for Hong Kong limited companies by law; it can be established with just 1 dollar. However, a capital amount that is too low may affect the success rate of bank account openings and the perception of credibility in business dealings. Market practice recommends setting HK$10,000(10,000 shares, HK$1 per share), balancing flexibility in equity distribution while controlling shareholders' potential liabilities during company liquidation within an acceptable range.
Company address registration fee
According to the Companies Ordinance, all limited companies must provide a local physical address in Hong Kong. A cost comparison of three common address options:
| Address options | Fee | Suitable audience |
|---|---|---|
| Self-occupied residence | Free | For those with extremely limited budgets and no concerns about public addresses |
| Virtual Office | HK$500–$2,500/year | Most startups |
| Physical office | Depending on the area | Companies with actual office needs |
Extended reading: "TheCan I use a virtual office for my business registration address? Requirements, change of address process in one article to see clearly》
Statutory secretary fee
Each limited company must appoint a company secretary, with appointment fees approximately HK$1,000–$3,000/year, and some agency packages have included the first-year secretary fee in their quotes.
Extended reading: 【What is a company secretary? Definition, duties and conditions of appointment in one article】
Agency service fees
The agency packages for limited companies in the market typically cover government fees, first-year secretary fees, address fees, and green box production, with quotes ranging around HK$4,000–$15,000。
| Comparison items | DIY self-handling | Commissioning an agency |
|---|---|---|
| Monetary costs | Approximately HK$3,745 + miscellaneous expenses | Approximately HK$4,000–$15,000 |
| Time cost | High, requiring self-research on forms and processes. | Low, full-service handling |
| Risk of rejection | Incorrectly filled forms or incomplete information are easily rejected | Dedicated pre-review to reduce rejection risk |
| Suitable audience | Familiar with regulations, limited budget, and ample time | Entrepreneurs who want to focus on business and avoid administrative troubles |
Before choosing an agency, the most important step is to confirm whether the quote includes government fees. Some low-priced packages charge government fees separately, which can lead to disputes after signing the contract.
Costs for setting up an unlimited company: a summary of expenses
Government registration fees and stamp duty
Unlimited companies do not need to register with the Companies Registry, only need to apply for a business registration with the tax bureau.
| Registration period | until March 31, 2026 | from April 1, 2026 |
|---|---|---|
| One-year term | HK$2,200 | HK$2,350 |
| Three-year term | HK$6,020 | HK$6,170 |
As for the stamp, unlimited companies only need a round seal and a signature seal for bank account opening, with a total cost of approximately HK$100–$200, far lower than the green box package for limited companies.
Recommended capital amount
Unlimited companies have no statutory capital requirements, no need for capital verification or deposit of a specified amount, making them one of the most flexible ways to start a business. However, owners bear unlimited liability for all company debts with personal assets, and in case of business disputes, personal property also faces recovery risks, requiring extra caution in financial arrangements.
Company address registration fee
Unlimited companies also need to provide a Hong Kong address as the business registration address. Using a residential address can save rent, but privacy and compliance risks also exist; the market rate for virtual offices is the same as for limited companies, about HK$500–$2,500 / year。
Agency service fees
The application process for unlimited companies is relatively simple, and many choose to handle it themselves. If entrusted to an agency, the market rate is about HK$2,500–$4,000(depending on whether address fees are included), which is much lower than for limited companies.
| Comparison items | DIY self-handling | Commissioning an agency |
|---|---|---|
| Monetary costs | About HK$2,200 (BR fee + stamp) | About HK$2,500–$4,000 |
| Time cost | In the middle, you need to fill out the form yourself and handle it at the tax bureau | Low, handled by a dedicated person throughout the process |
| Risk of rejection | If the form is filled out incorrectly or the information is incomplete, supplementary documents are required | A dedicated person will verify the information to reduce the chance of errors |
| Suitable audience | For those with a limited budget, a simple process, and time to handle it personally | Entrepreneurs who want to start a business quickly and do not want to deal with cumbersome administration |
Longfeng Wenxing reminds: Practical suggestions for saving company costs
The key to saving costs lies in early decision-making, not in post-remedy. The following four directions are worth planning in advance before starting a company:
| Methods | Specific practices | Expected savings |
|---|---|---|
| Seize the opportunity to apply | If the company opening time is close to April 2026, complete the application before the end of March | Save one year of tax HK$150 |
| Choose a three-year business registration certificate | Pay for three years at once to reduce annual renewal procedures | Save an average of HK$150–$300 each year |
| Reasonably set the issued share capital | Setting HK$10,000 for startups is sufficient, and future capital increases can be done through NSC1 form | Reduce the stamp duty on future share transfers |
| Carefully compare agency quotes | Besides the first-year price, pay attention to the renewal fee standards and hidden terms for the second year | Potential savings of thousands of Hong Kong dollars |
Frequently Asked Questions
How much money do you need to start a company?
Electronic applications are handled independently, with the minimum government fee for limited companies being HK$3,745; for unlimited companies, the minimum is HK$2,200. Considering necessary expenses such as stamps, addresses, and first-year secretarial services, it is recommended that limited companies prepare at least HK$8,000–$10,000.
Can government fees be refunded?
The company registration fee is partially refundable if the application is not approved, with electronic applications refunded HK$1,280 and paper applications refunded HK$1,425. The business registration fee is generally non-refundable.
What does the agency fee include?
Depending on the package, be sure to confirm the pricing details item by item before signing the contract, with a focus on confirming whether the government fees are included and the renewal terms for the second year.
Why are some agency packages cheaper than registering on your own?
Some agency companies reduce costs through large-scale operations or lock in profits on the renewal fees for the second year (secretarial fees, annual review fees, audit fees). Therefore, when choosing an agency, in addition to looking at the first-year price, it is also important to inquire about the renewal fee standards for the second year and whether there are hidden clauses such as termination fees.
Is it possible to set the capital amount at 1 yuan?
Legally possible, but a capital amount that is too low will affect the success rate of bank account opening and the credibility of business dealings. It is recommended to set HK$10,000 as the market practice standard.
What other expenses are there after the company is established?
After the company is established, there are still maintenance costs such as annual business registration renewal, annual reporting, and secretarial services, which belong to another level of planning and should be evaluated separately.
Have questions about fees? Feel free to consult Langfeng Business Consultants
If you are still uncertain about the specific components of the company formation costs, feel free to consult Longfeng Business Consultants. We offer transparent, all-inclusive packages, with quotes covering company secretary and Hong Kong registered address, with no hidden fees.
Extended reading: "TheComplete guide to starting a company in Hong Kong: processes, costs, and precautions》