Hong Kong company incorporation fee

🚀 Ultimate Guide to Hong Kong Company Incorporation Fees: 2025 Cost Breakdown

Hong Kong is a premier global financial hub, renowned for its low taxes, strategic location, and simple regulatory framework. For entrepreneurs and international businesses, incorporating a company here offers a gateway to Asia.

However, understanding the Hong Kong company incorporation fee is crucial for accurate budgeting. This guide breaks down all the necessary initial and ongoing costs, separating mandatory government charges from professional service fees.

Part 1: Mandatory Government Incorporation Fees (One-Time)

The initial setup cost primarily involves two non-negotiable fees paid to the Hong Kong government—the Companies Registry (CR) and the Inland Revenue Department (IRD).

Fee Item	Submission Method	Fee (HKD)	Notes
Incorporation Fee (Companies Registry)	Electronic Submission	HK$1,545	Includes a refundable registration fee of HK$1,280, applicable if the application is unsuccessful.
	Hard Copy Submission	HK$1,720	Includes a refundable registration fee of HK$1,425.
Business Registration Certificate (BRC) Fee (Inland Revenue Dept.)	One-Year Certificate	HK$2,200	Mandatory for all businesses. The exact fee can change, so always check the latest IRD schedule.
	Three-Year Certificate	HK$6,020 (Approx.)	A cost-effective option for long-term planning.

• Total Initial Government Fees: The minimum cost to legally register a new company (using electronic submission and a one-year BRC) is HK$3,745 (HK$1,545 + HK$2,200).

Part 2: Essential Annual Compliance Costs

Beyond the one-time government fees, every Hong Kong limited company has legal requirements that incur annual costs. These are often where professional service providers (like company secretaries) come into play.

1. Company Secretary and Registered Address

By law, every Hong Kong limited company must have:

• A local Company Secretary (must be a Hong Kong resident or a corporate entity).

  
  

• A local Registered Office Address (a physical Hong Kong address, not a P.O. Box).

  
  

Service Item	Annual Fee (HKD)	Notes
Company Secretary Service	HK$1,000 – HK$5,000+	Varies significantly by scope (basic compliance vs. comprehensive support).
Registered Office Address Service	HK$900 – HK$3,000+	Provides the necessary legal address for official correspondence.

2. Annual Return Filing

All companies must file an Annual Return (Form NAR1) with the Companies Registry to update essential company information within 42 days of the anniversary of incorporation.

• Annual Return Government Filing Fee: HK$105 (if filed on time).

  
  

• ⚠️ Late Filing Penalty: Penalties escalate quickly, reaching up to HK$3,480 if filed more than nine months late.

  
  

3. Business Registration Certificate Renewal

The BRC must be renewed annually (or tri-annually).

• Annual Renewal Fee: HK$2,200 (Same as the initial one-year fee).

  
  

4. Designated Representative (DR) & Significant Controllers Register (SCR)

The company must maintain a Significant Controllers Register (SCR) and appoint a Designated Representative (DR) to manage it.

• SCR/DR Maintenance Service: Ranges from HK$800 – HK$1,500 annually if outsourced to your company secretary.

Part 3: Professional Incorporation Service Fees

Most entrepreneurs, particularly non-residents, choose to hire a professional corporate service provider (CSP) to manage the incorporation process and mandatory annual compliance.

Service Item	One-Time Fee Range (HKD)	Notes
Full Incorporation Package	HK$4,500 – HK$12,000+	This fee includes the initial government fees, preparation of all documents (like the Articles of Association), appointment of a Company Secretary, and a Registered Address for the first year.
Bank Account Opening Assistance (Optional)	HK$3,000 – HK$8,000+	Very common for non-residents. This service prepares documentation and liaises with banks to streamline a process that can be challenging for foreigners.
Statutory Kit / Company Chop	Often included in packages, or a small separate fee of HK$300 – HK$800.	Includes the company common seal, share certificates, and statutory records.

• Average All-Inclusive Setup Cost: When using a service provider, the total one-time cost to register your company, including government fees and the first year's essential secretarial/address services, falls between HK$7,000 and HK$15,000.

Part 4: Ongoing Compliance & Operational Costs

These fees depend on your company's activity but are mandatory for continued legal operation.

Service Item	Annual Fee (HKD)	Notes
Annual Audit & Tax Filing	HK$3,000 – HK$20,000+	All Hong Kong companies, even those with "zero profit," must have their financial statements audited by a Certified Public Accountant (CPA) and file a Profits Tax Return. Costs vary based on turnover and transaction volume.
Bookkeeping / Accounting Services	HK$5,000 – HK$15,000+	Mandatory for preparing financial statements for the audit. Costs depend on transaction volume and complexity.
Profits Tax	8.25% or 16.5%	Hong Kong's two-tiered tax system: 8.25% for the first HK$2 million in assessable profits, and 16.5% for the remainder. No capital gains tax.

🔍 Avoiding Hidden Fees: Key Takeaways

When choosing an incorporation service, always ask for a clear breakdown to avoid unexpected charges:

1. Audit Mandate: Be aware that a mandatory annual audit by a CPA is required, even if your company has had no business activity (though a "dormant" status can be applied for).

Hong Kong remains one of the fastest and most cost-effective jurisdictions globally to establish a business. By understanding this fee structure, you can budget effectively and ensure seamless compliance from day one.

Comparison of the mandatory government fees versus a typical all-inclusive professional service package

The difference between the mandatory government fees and an all-inclusive professional service package can be significant, both in cost and in the services you receive.

Here is a side-by-side comparison, using the typical fees for establishing a Hong Kong Private Limited Company as an example. All figures are approximate and in Hong Kong Dollars (HKD), as of late 2024/early 2025.

⚖️ Government Fees vs. All-Inclusive Package (Hong Kong Company Incorporation)

Feature	Mandatory Government Fees (Direct Filing)	Typical All-Inclusive Professional Service Package
Typical Cost Range (One-off Setup)	HKD $3,745 - $3,920	HKD $5,500 - $12,000+
Government Fees Included	Only the compulsory fees (paid directly to Companies Registry/IRD).	All compulsory government fees are included in the package price.
Companies Registry (CR) Filing Fee	$1,545 (Electronic) or $1,720 (Hard Copy)	Included
Business Registration Certificate (BRC) Fee	$2,200 (1-Year Certificate)	Included
Core Service Inclusions	None. This is just the cost of filing your application. You must handle all subsequent mandatory steps yourself.	All immediate statutory requirements for the first year are covered.
Company Secretary	Not Included (But legally required to be appointed).	Included for the first year (Statutory requirement).
Registered Office Address	Not Included (But legally required). A PO Box is not acceptable.	Included for the first year (Provision of a physical HK address).
Documentation & Filing	Preparation of all forms (e.g., NNC1), drafting of Articles of Association, and submission must be done by the client.	Preparation and submission of all incorporation documents by a professional.
Company Kit/Chops	Not Included	Included (Includes corporate seals/chops, statutory books, share certificates, etc.).
Significant Controllers Register (SCR) & Designated Rep	Not Included (A Designated Representative must be appointed).	Included (Acting as the Designated Representative and setting up the SCR).
Bank Account Assistance	None	Often Included (Guidance, document certification, and liaison with banks).
Initial Compliance Advice	None (Self-service).	Included (Advice on structure, ongoing compliance, and tax system).
Post-Incorporation Support	None	Often Included (Reminders for Annual Return, BRC renewal, etc.).

💡 Key Differences Explained

1. Mandatory Government Fees (The Bare Minimum)

These are the non-negotiable fees paid directly to two Hong Kong government bodies:

• Companies Registry (CR): For the Certificate of Incorporation.

  
  

• Inland Revenue Department (IRD): For the Business Registration Certificate (BRC).

  
  

What the Government Fee DOES NOT Cover:

• Company Secretary: Every HK company must appoint a Company Secretary who is an HK resident or a Trust and Corporate Services Provider (TCSP) licensed firm.

  
  

• Registered Office: Every company must have a physical address in Hong Kong for official government correspondence.

  
  

• Documentation: Drafting the Articles of Association and all statutory forms.

  
  

• Compliance: Preparing the Significant Controllers Register (SCR) and appointing a Designated Representative.

  
  

If you choose to file directly, you will still need to separately secure and pay for the legally required Company Secretary and Registered Office services, plus handle all the complex legal paperwork yourself.

2. All-Inclusive Professional Service Package (The Turn-Key Solution)

A professional service package bundles the mandatory government fees with all the essential, legally required professional services for the first year of operation.

Key Value of the Package:

• Compliance Assurance: Professionals ensure you meet the statutory requirements from Day 1, avoiding potential penalties for non-compliance (e.g., for not appointing a Company Secretary or filing an Annual Return late).

  
  

• Convenience: It is a "set-and-forget" solution. The service provider handles all the paperwork, forms, statutory registers, and filing submissions.

  
  

• Added Value: They often include assistance with crucial post-incorporation steps, like corporate bank account opening, which can be challenging for foreign founders in Hong Kong.

  
  

In summary, the Mandatory Government Fees are simply the cost of admission for registering the company's name and existence. The All-Inclusive Package covers those fees plus the services you are legally required to have and the professional support needed for a smooth, compliant launch.

Annual Maintenance Fees (e.g., Company Secretary, Annual Return filing) after the First Year

That's a crucial next step in financial planning. The major recurring costs for a Hong Kong Private Limited Company generally fall into two categories: Mandatory Government Fees and Professional Compliance Services.

Here is a breakdown of the specific annual maintenance fees you can expect after the first year.

💰 Annual Maintenance Fees (Year 2 Onwards)

I. Mandatory Government Fees (Fixed)

These fees are non-negotiable and are paid directly to the government to keep your company in good standing.

Fee Item	Government Department	Amount (HKD)	Notes
Business Registration Certificate (BRC) Renewal	Inland Revenue Department (IRD)	$2,200 (1-Year Certificate)	The BRC is typically renewed annually. The fee was recently increased from $2,000 to $2,200 as of April 1, 2024.
Annual Return (Form NAR1) Filing Fee	Companies Registry (CR)	$105	This is the statutory fee if the Annual Return is filed on time (within 42 days of the company's anniversary date).
BR Levy (for Protection of Wages on Insolvency Fund)	Inland Revenue Department (IRD)	$0	The levy is currently waived by the government until at least March 31, 2026.
Total Mandatory Fees (Annual)		Approx. $2,305	This excludes late filing penalties and any variable taxes.

⚠️ Penalty for Late Filing of Annual Return (NAR1)If the Annual Return is filed late, the government fee dramatically increases according to a progressive scale:

• More than 42 days late: $870

  
  

• More than 3 months late: $1,740

  
  

• More than 9 months late: $3,480

  
  

II. Professional Compliance Services (Variable)

These are the fees for the services that are legally required to be maintained and are provided by Bestar.

Service Item	Legal Requirement	Typical Annual Cost Range (HKD)	Notes
Company Secretary Service	Mandatory	$1,500 - $4,000+	Covers maintaining statutory records, preparing resolutions (e.g., in lieu of AGM), handling changes, and acting as the Designated Representative for the Significant Controllers Register (SCR).
Registered Office Address	Mandatory	$1,000 - $3,000+	Provision of a physical Hong Kong address for government correspondence and legal notices. The price often includes mail scanning/forwarding.
Annual Return Filing (Professional Fee)	Statutory Filing	$500 - $1,500	This is the professional fee for preparing and filing the NAR1 form with the Companies Registry. (Note: Some providers include this in the Company Secretary retainer fee).
Annual Audit & Profits Tax Filing	Mandatory	$8,000 - $20,000+	All HK companies must prepare audited financial statements (unless exempt) and file a Profits Tax Return. This is the largest variable cost, depending entirely on the size, complexity, and turnover of your business.
Total Professional Compliance (Estimate)		$10,500 - $28,500+	This estimate is highly variable due to audit costs.

📊 Summary of Total Annual Maintenance

A typical small to medium-sized Hong Kong company with minimal transactions would face an estimated total annual maintenance cost in the range of:

Total Annual Cost ≈ Government Fees + Compliance Fees + Audit/Tax Fees

HKD 2,305+HKD 2,500 to 5,500+HKD 8,000 to 20,000+

Total Annual Estimated Cost ≈ HKD 12,800 to 27,800+

The annual cost is driven mainly by the compliance requirements, particularly the legally mandated annual audit, which requires proper bookkeeping throughout the year.

Estimating the annual audit and tax filing costs based on a specific business type or turnover range

The annual audit and tax filing cost is the most significant variable component of your Hong Kong company's annual maintenance. This fee is highly dependent on factors like your business activity, the quality of your records, and your total turnover.

Here are the options for estimating your annual audit and tax filing costs based on common business types and turnover ranges.

Estimating Annual Audit and Tax Filing Costs

The total cost usually combines three distinct services: Bookkeeping/Accounting, Statutory Audit, and Profits Tax Return Filing. Many professional service providers bundle these together.

1. Cost Estimation by Annual Turnover (HKD)

The volume of transactions is a key driver for the audit fee. The more transactions you have, the more time the auditor must spend verifying them.

Annual Sales Turnover (HKD)	Typical Business Profile	Estimated Total Fee Range (HKD)	Notes
$0 (Dormant)	Truly inactive company (no transactions)	$5,000 - $8,000	For filing a "Dormant Status" affidavit/annual paperwork.
< $500,000	Very small service/holding company, very low volume	$8,000 - $16,000	Fee includes bookkeeping, audit, and tax filing for minimal activity.
$500,000 - $2,000,000	Small trading or service company, simple structure	$15,000 - $25,000	Standard SME range. Complexity increases the cost within this band.
$2,000,000 - $5,000,000	Small to mid-sized trading, e-commerce, or professional services	$20,000 - $35,000	Higher volume of transactions requires more audit effort.
$5,000,000 - $10,000,000+	Mid-sized, complex operations, multiple bank accounts	$35,000+	Costs scale up significantly with turnover, complexity, inventory, and cross-border transactions.

2. Cost Estimation by Business Type and Complexity

The nature of your business can matter more than the raw turnover figure due to the inherent audit risk and complexity.

Business Type	Key Audit Complexity Factors	Typical Audit & Tax Cost Basis
Service Company (Consulting, Software)	Lowest complexity. Few physical assets; revenue is service-based.	Based mainly on number of bank/client invoices. Lowest fee range for a given turnover.
Holding Company (Passive Income)	Low complexity. Few transactions (dividends, interest). May need simple asset valuation.	Closer to the lower end of the turnover bands, provided the transactions are minimal.
Trading Company (Import/Export)	Medium to High complexity. Requires inventory checks, verification of sales contracts, shipping documents, and trade finance (L/C).	Cost is higher due to verification of cost of goods sold, stock, and cross-border transactions.
E-commerce/Retail	High transaction volume, foreign currency, and payment gateways (Stripe, PayPal). Complexity in tracking sales and inventory.	Cost is higher due to the sheer volume of data and reconciliation needed between platforms and bank.

3. Critical Factors That Increase Costs

You can control your audit fees by minimizing these factors:

Factor	Impact on Cost	Explanation
Poor Bookkeeping	High increase	If your records are incomplete, unorganized, or require the accountant to start from scratch, they will charge extra, sometimes at high hourly rates.
Complex Transactions	Medium increase	Having related-party transactions, inter-company loans, or significant foreign-sourced income claims requires extra audit work.
Offshore Profit Claim	Medium increase	Proving that income is offshore (not taxable in HK) requires extensive documentation and detailed audit procedures, increasing the cost.
Inventory/Fixed Assets	Medium increase	Physical assets or large inventories require verification and valuation, increasing audit time.

Key Takeaway for Cost Control:

The most effective way to keep your annual audit and tax costs at the lower end of the estimates is to ensure accurate and well-organized bookkeeping is maintained throughout the year.

Referral to Bestar reputable Hong Kong CPA firm or Bestar professional service provider to get specific, binding quotes based on company's actual transaction volume

Bestar is a reputable professional service provider in Hong Kong known for offering a comprehensive suite of services to SMEs, including the audit and tax support you require. They are one of the firms that provides integrated accounting, corporate secretarial, and audit arrangements.

Since the cost is heavily dependent on your specific transaction volume and complexity, getting a direct quote is the best next step.

🎯 Bestar Services Relevant to Your Request

Bestar provides a full range of mandatory and supporting services for Hong Kong limited companies:

• Bookkeeping & Accounting: Day-to-day transaction recording, which is the foundation for the audit. The quality of this service directly impacts the final audit cost.

  
  

• Statutory Annual Audit: Required for all active Hong Kong limited companies. The fee is determined by a Certified Public Accountant (CPA) based on your company's turnover and volume of records.

  
  

• Profits Tax Return Filing: Preparing and filing the required Profits Tax Return (BIR51) and the audited financial statements with the Inland Revenue Department (IRD).

  
  

• Corporate Secretarial Services: Mandatory requirement, which includes acting as your Company Secretary, maintaining statutory records, and filing the Annual Return (NAR1).

➡️ How to Get a Specific, Binding Quote

Since professional fees are usually customized, contact Bestar and provide us with key details about your business.

Prepare the following information to ensure we can provide an accurate and binding quote for the combined annual audit and tax filing:

Information Needed for Quote	Rationale
Business Type	e.g., Trading, E-commerce, Consulting/Service, Holding Company. (This determines audit complexity.)
Annual Estimated Revenue (Turnover)	Your best estimate for the first fiscal year, e.g., HK$3,000,000. (The primary cost driver.)
Estimated Transaction Volume	The number of bank transactions, sales invoices, and purchase receipts per year (e.g., 500-1,000 total). (This is the key metric for the auditor's time.)
Accounting Records Quality	Will you provide organized records (e.g., in an Excel ledger or cloud software), or will they need to perform the initial bookkeeping? (This significantly affects the fee.)
Claiming Offshore Profits?	Yes/No. (Claiming tax exemption for offshore profits adds significant audit complexity and cost.)

Direct contact details (phone number and email) for the Bestar Hong Kong office to begin the quotation process

Direct contact information for the Bestar Hong Kong office.

You can reach out to them directly with your company's transaction volume details to get a specific and binding quote for their CPA and professional services.

Bestar Hong Kong Contact Details

Contact Type	Details
Address	Flat D, 20/F, Eton Building, 288 Des Voeux Road Central, Sheung Wan, Hong Kong
New Sales Enquiries Tel	+852 3565 1861
Email	admin@bestar.asia
WhatsApp (Sales)	+65 88364489 (Note: This is a Singapore number for our international sales team)

Send an email to admin@bestar.asia with the specific details about your company's transaction volume, annual revenue, and the services you need (e.g., annual audit, tax filing, and company secretarial service) to receive the most accurate quote.

ect contact information for the Bestar Hong Kong office.

You can reach out to them directly with your company's transaction volume details to get a specific and binding quote for their CPA and professional services.

Bestar Hong Kong Contact Details

Contact Type	Details
Address	Flat D, 20/F, Eton Building, 288 Des Voeux Road Central, Sheung Wan, Hong Kong
New Sales Enquiries Tel	+852 3565 1861
Email	admin@bestar.asia
WhatsApp (Sales)	+65 88364489 (Note: This is a Singapore number for our international sales team)

Send an email to admin@bestar.asia with the specific details about your company's transaction volume, annual revenue, and the services you need (e.g., annual audit, tax filing, and company secretarial service) to receive the most accurate quote.