Unlocking Opportunities: Setting Up a Trading Company in Hong Kong

A trading company is an entity engaged in the business of purchasing, distributing, and selling goods and services on an international scale. These goods and services are designed to fulfil various needs, including those of consumers, businesses, and government entities.

Trading companies play a vital role in Hong Kong's robust economy, attributable to the city's strategic location and its conducive business environment.

Why Launch a Trading Company in Hong Kong?

• Hong Kong's economy operates under a free trade policy, which entails minimal restrictions on trade concerning most goods and services. Additionally, Hong Kong is a participant in various multilateral, regional, plurilateral, and bilateral free trade agreements, contributing to a secure and advantageous trading environment.

• Hong Kong is situated in the center of Asia, in proximity to several of the continent's largest and most robust economies. It also provides convenient access to global markets, ranking among the top 10 international ports. Consequently, establishing a trading company in Hong Kong facilitates easy access to China and other countries.

• Hong Kong boasts one of the most favourable tax systems globally, featuring three direct taxes applicable to legal entities or companies: profit tax, property tax, and payroll tax. These taxes are levied at flat rates, and there are generous allowances and deductions available to further mitigate the overall tax burden.

Setting Up a Trading Company in Hong Kong

When establishing a trading company in Hong Kong, it is crucial to consider not only the initial incorporation but also the ongoing administration and maintenance of the business. Additionally, engaging professional accounting services will help manage your financial records effectively and ensure compliance with local regulations. 

Incorporation primarily entails registering your company with the appropriate department in Hong Kong. The key requirements for company registration are as follows:

• Company name;

• At least 1 director and 1 shareholder (may be represented by the same person if the shareholder is an individual) ;

• Define the amount of share capital;

• Registration address;

• Corporate secretary;

• The most commonly used type of structure for trading companies is a limited liability company.

Brasia provides comprehensive assistance with the preparation of all necessary company incorporation documents, consultations on name availability, address registration, and secretarial services, in addition to a range of other corporate services.

Understanding the Hong Kong – China Free Trade Agreement

Hong Kong has established a special trade agreement with mainland China, referred to as the Hong Kong-China Free Trade Agreement (FTA). This agreement provides preferential treatment to companies based in Hong Kong when engaging in trade with China. Furthermore, it eliminates or reduces tariffs, streamlines customs procedures, and facilitates opportunities for international investment.

If you are looking to establish your trading company in Hong Kong, our experts at Brasia are here to assist you throughout the entire process. We will evaluate your needs to identify the most appropriate company structure and type of license.

Additionally, we offer corporate secretarial services and a physical business address in Hong Kong.

To get in touch, please fill out the form on our contact page or send us an email at info@brasia.hk.