Question 1

What is Hong Kong's territorial tax system?

Accepted Answer

Hong Kong only taxes profits sourced within Hong Kong. Profits from offshore trading or services provided entirely outside Hong Kong are generally not subject to Hong Kong profits tax. This makes Hong Kong compelling for international trading companies.

Question 2

Is an annual audit compulsory for Hong Kong companies?

Accepted Answer

Yes. All Hong Kong private companies must have their accounts audited annually by a licensed CPA, regardless of size or revenue. This is a fixed cost you should budget for — typically USD 800–2,000 per year for small companies.

Question 3

Can I open a Hong Kong business bank account remotely?

Accepted Answer

Some banks allow remote or online account opening for Hong Kong companies, but many require in-person visits. Nomadic Go provides business banking assistance for Hong Kong companies, including bank selection and document preparation.

Question 4

Is Hong Kong still a good jurisdiction after 2020?

Accepted Answer

Hong Kong remains a legally and financially credible jurisdiction under the Basic Law, with its own common law courts, banking infrastructure, and low-tax system. It is particularly strong for China-adjacent businesses. Many founders continue to use HK for its tax structure and banking gateway to China.

Question 5

Are there nationality restrictions for Hong Kong company formation?

Accepted Answer

Hong Kong imposes no nationality-based restrictions on company ownership — any foreign national can hold shares in a Hong Kong company. However, Hong Kong banks apply rigorous AML/KYC due diligence and may decline account applications from nationals of OFAC-sanctioned countries (Iran, North Korea, Cuba, Syria) or countries on the FATF blacklist. Russian nationals face heightened scrutiny at most HK banks following 2022 sanctions, though applications are not automatically declined. Source-of-funds documentation is especially important for applicants from higher-risk nationalities.

Services in Hong Kong

Banking Support

Company Formation

Solution Bundles

Nomadic Go+ membership