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.
- A sole proprietorship does not need to register with the Companies Registry, only pay the business registration fee 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 cost structure of starting a company varies significantly by company type, and there are two parts worth clarifying before making a choice:
Registration requirements.
- Limited company: Must register with both the Companies Registry (CR) and the Inland Revenue Department (IRD), and is required to appoint a statutory company secretary.
- Sole proprietorship: Only needs to apply for business registration with the Inland Revenue Department, does not require a company secretary, making the process simpler and the costs lower.
Legal responsibilities
- Limited company: Shareholder liability is limited to the subscribed capital, protecting personal assets.
- Sole proprietorship: The owner must bear all company debts with personal assets, and in case of business disputes, personal property also faces the risk of claims.
Costs of setting up a limited company: Detailed explanation of each expense.
Government registration fees.
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, paper applications are HK$1,720. If the application is not approved, the electronic application can be refunded HK$1,280.
- 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$3,745. If the application time is close to April 2026, confirming the applicable year in advance can avoid overpayment of fees. Although the initial expenditure for the three-year term is higher, it can save about HK$150–300 on average per year in the long run, and the administrative process is also more convenient.
Stamp and Green Box fees
The physical document set required for opening a limited company account is commonly known as the "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, and there is no mandatory requirement to use a steel 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 for receiving government and legal documents. Using a residential address may save money, but the address will be publicly available in the registration system, and some property leases prohibit commercial use. Renting a virtual office is a more common choice, with market rates around HK$500–2,500 / year, usually including mail collection services.
Statutory secretary fee
Each limited company must appoint a statutory company secretary, who must be a Hong Kong resident or a licensed trust or company service provider (TCSP). Responsible for handling the submission of statutory documents, minutes of shareholder meetings, and other compliance matters, the appointment fee is 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 costs
Unlimited companies do not need to register with the Companies Registry, only apply for business registration with the tax bureau. The current annual fee is HK$2,200(increasing to HK$2,350 from April 2026). For stamps, banks only require a round seal and signature chop, with a total cost of about 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 company formation costs, feel free to consult Langfeng Business Consultants. We offer transparent, all-inclusive packages, with quotes covering government fees, first-year company secretary, and Hong Kong registered address, with no hidden costs.
Extended reading: "TheComplete guide to starting a company in Hong Kong: processes, costs, and precautions》