Hong Kong and US Delaware are complementary structures often used by Asia-Pacific and international founders. Hong Kong offers territorial taxation (only HK-source profits taxed), zero VAT, and proximity to mainland China. Delaware is unmatched for US VC fundraising and offers maximum flexibility through its LLC or C-Corp structures — both can be formed by non-residents.
Best for international traders, consultants earning primarily outside Hong Kong, and businesses wanting territorial taxation, no VAT, and Asia-Pacific proximity.
Best for founders raising US venture capital (C-Corp), wanting pass-through taxation flexibility (LLC), or needing a US legal entity for contracts and payments.
If you primarily trade internationally outside the US and want territorial taxation (so offshore profits are not taxed), Hong Kong is highly compelling. If you are raising US venture capital or need a US legal entity for contracts, payments, or banking, Delaware is the standard choice. Many APAC founders hold both: a Hong Kong entity for operations and a Delaware C-Corp for their US fundraise.
No. Hong Kong's territorial tax system means only profits sourced within Hong Kong are assessable. Profits from offshore trading, consulting, or services provided entirely outside Hong Kong are generally not subject to HK profits tax. This is a major advantage for international businesses compared to the US worldwide income system for C-Corps.
The HK annual audit is a fixed ongoing requirement — typically USD 800–2,000/year for a small company. Delaware does not require a statutory audit. Budget this into your ongoing HK compliance costs when comparing the two structures.
Yes. Nomadic Go provides Limited company formation for Hong Kong and Delaware LLC/C-Corp formation for the US (including EIN support). Government fees are separate from our service fee.