Public Company Limited by Shares in Hong Kong

Public Company Limited by Shares · Formation from $499

Last verified: June 13, 2026

Corporate Tax

16.5%

State Tax

0.0%

Formation Cost

$499

Annual Fee

$319

Comparison Scores

Privacy, remote setup, banking, and tax efficiency

Privacy2/10

Remote Setup8/10

Banking9/10

Tax Efficiency9/10

Overall Score7/10

Calculate full formation cost

Break down one-time filing fees and recurring costs for any supported entity type.

Who Should Choose This?

Profiles that typically benefit from this entity

Large corporations planning an Initial Public Offering (IPO) on the Hong Kong Stock Exchange.
Businesses that need to raise significant capital from the general public.
Enterprises with a large investor base exceeding 50 shareholders.
Multinational companies seeking maximum corporate prestige and transparency in Asia.

Who Should Avoid This?

Scenarios where another structure may be better

Small to medium enterprises (SMEs) and solo founders looking for a simple, low-cost setup.
Startups that do not plan to raise funds from the public or list on an exchange.
Business owners who wish to keep their financial statements and company details private.

Advantages

+Ability to offer shares and debentures to the general public to raise significant capital.
+Serves as the prerequisite legal structure for listing on the Hong Kong Stock Exchange (HKEX).
+No maximum limit on the number of shareholders, easily accommodating more than 50 investors.
+Projects the highest level of corporate credibility, transparency, and prestige to global partners.
+Allows 100% foreign ownership with no restrictions on the nationality or residency of shareholders and directors.

Disadvantages

-Subject to highly stringent regulatory compliance, public disclosure, and corporate governance rules.
-Mandatory annual financial audits by a Hong Kong-licensed Certified Public Accountant (CPA) are required.
-Financial statements and directors' details are placed on public record, offering very low privacy.
-Must hold Annual General Meetings (AGMs) within specific statutory timeframes.
-Significantly higher setup and ongoing maintenance costs compared to a private company limited by shares.

Formation Steps

Choose a proposed company name and verify its availability via the Companies Registry Cyber Search Centre.

Appoint at least one director, one shareholder, and a mandatory Hong Kong-resident company secretary (or licensed TCSP).

Secure a physical registered office address in Hong Kong (P.O. boxes are strictly prohibited).

Draft the Articles of Association, typically adopting the Model Articles for Public Companies Limited by Shares.

Submit the incorporation form (NNC1G) along with the Articles to the Companies Registry and pay the HKD 1,545 fee.

Obtain the Certificate of Incorporation and the Business Registration Certificate (BRC fee is HKD 2,350 for the 2026-2027 period).

Open a corporate bank account, register for the Mandatory Provident Fund (MPF) for employees, and apply for any specific industry licenses.

Cost Breakdown

Detailed breakdown of formation and ongoing costs

Item	Type	Amount
State filing fee (Companies Registry)	One-time	$198
Business Registration Certificate (BRC)	Annual	$301
Registered Office & Company Secretary	Annual	$800
Professional Incorporation Service	One-time	$500
Mandatory Annual Audit (Estimated Base)	Annual	$2,000
Annual Return Filing Fee	Annual	$18
First year total		$1,799
Annual ongoing		$3,119

Real-World Examples

Typical use cases for this entity type

Tencent Holdings Limited (A massive technology conglomerate listed on the HKEX).
Cathay Pacific Airways Limited (Hong Kong's flagship international airline).
MTR Corporation Limited (The operator of Hong Kong's mass transit railway network).

Common Mistakes

Pitfalls to avoid during setup and operations

Incorporating a public company when a private company limited by shares would suffice, leading to unnecessary compliance costs.
Failing to hold the mandatory Annual General Meeting (AGM) within the statutory deadline.
Missing the deadline to file the Annual Return (Form NAR1) or audited accounts, resulting in hefty late penalties.
Assuming the company secretary is just an administrative role rather than a mandatory licensed compliance officer.
Forgetting to renew the Business Registration Certificate (BRC) annually with the Inland Revenue Department.

Other entity types

Other formation options in Hong Kong

Private Company Limited by Shares

Primary

Tax: 16.5%
Formation: $499

Company Limited by Guarantee

Tax: 16.5%
Formation: $321

Branch Office

Tax: 16.5%
Formation: $500

Representative Office

Tax: 16.5%
Formation: $300

Sole Proprietorship

Tax: 15.0%
Formation: $301

General Partnership

Tax: 15.0%
Formation: $300

Limited Partnership

Tax: 15.0%
Formation: $345

Limited Partnership Fund

Tax: 16.5%
Formation: $389

Compare with Other Countries

Country / Type	Tax	Formation	Annual
🇭🇰 Public Company Limited by Shares(Public Company Limited by Shares)	16.5%	$499	$319

🇭🇰 vs 🇺🇸 United States 🇭🇰 vs 🇪🇪 Estonia 🇭🇰 vs 🇬🇧 United Kingdom 🇭🇰 vs 🇮🇪 Ireland All comparisons →

FAQ

Can a foreigner set up a public company in Hong Kong?

Yes, 100% foreign ownership is permitted. Directors and shareholders can be of any nationality and do not need to reside in Hong Kong.

What is the difference between a private and public company limited by shares?

A public company can offer shares to the public, has no shareholder limit, and can list on a stock exchange, but faces much stricter public disclosure and audit requirements.

Is there a minimum share capital requirement?

There is no statutory minimum share capital. A company can be formed with just 1 share of any value, though public companies typically have higher capital structures.

Do I need a local company secretary?

Yes, it is a strict legal requirement under the Companies Ordinance to appoint a Hong Kong-resident individual or a licensed Trust and Corporate Service Provider (TCSP).

Are annual audits mandatory?

Yes, all public companies must have their financial statements audited annually by a Hong Kong-licensed CPA and present them at the AGM.

How long does the incorporation process take?

If filed electronically via the e-Registry, the Certificate of Incorporation is typically issued within 1 to 4 business days.

What is the corporate tax rate?

Hong Kong uses a two-tiered system: 8.25% on the first HKD 2 million of assessable profits, and 16.5% on the remainder, applying only to Hong Kong-sourced income.

What is the liability of the shareholders?

Shareholder liability is limited to the unpaid amount on the shares they hold, protecting their personal assets from business debts.

Detailed Tax Rates

Corporate Income Tax

From	To	Rate
$0	$2,000,000	8.3%
$2,000,000	No limit	16.5%

Hong Kong operates a territorial tax system, meaning only profits arising in or derived from Hong Kong are taxable. A two-tiered profits tax regime applies, taxing the first HKD 2 million at 8.25% and the remainder at 16.5%.

Personal Income Tax (Top rate: 17.0%)

From	To	Rate
$0	$50,000	2.0%
$50,000	$100,000	6.0%
$100,000	$150,000	10.0%
$150,000	$200,000	14.0%
$200,000	No limit	17.0%

Salaries tax is calculated at progressive rates up to 17%, or at a standard rate of 15% on the first HKD 5 million of net income (16% on the remainder), whichever is lower. Hong Kong does not tax foreign-sourced employment income.

Capital Gains Tax

0.0%

Hong Kong does not impose a capital gains tax. However, gains from the disposal of assets may be subject to profits tax if the transactions constitute a trade or business.

VAT / GST

0.0%

Hong Kong does not levy Value Added Tax (VAT), Goods and Services Tax (GST), or any general sales tax on goods and digital services.

Withholding Tax

Dividends0.0%

Royalties5.0%

Interest0.0%

Dividends and interest are not subject to withholding tax. Royalties paid to non-resident non-associates are effectively taxed at 4.95%, while payments to associates may be taxed at 16.5%. Rates may be reduced under Hong Kong's extensive network of double taxation agreements.

Payroll & Social Security

Employer5.0%

Employee5.0%

Both employers and employees must contribute 5% of the employee's relevant income to a Mandatory Provident Fund (MPF). Mandatory contributions are capped at HKD 1,500 per month for each party.

Other Taxes

Property Tax

Charged at a standard rate of 15% on the net assessable value of land or buildings situated in Hong Kong.

Stamp Duty

Levied on the transfer of Hong Kong stock (0.1% payable by both buyer and seller) and on the transfer or lease of immovable property.

Banking & Payments

HSBC Hong Kong

A leading traditional bank offering comprehensive corporate banking, though non-residents typically need to visit a branch.

Statrys

Remote-friendly

A popular Hong Kong-based fintech offering multi-currency business accounts with fully remote onboarding.

Airwallex

Remote-friendly

Excellent for global startups needing virtual cards, multi-currency accounts, and fast remote setup.

Standard Chartered

Strong international presence and trade finance options, but requires strict KYC and usually an in-person meeting.

Payment Gateways

Stripe, PayPal, Airwallex, Adyen, Checkout.com

Currency

HKD

Multi-Currency: Supported

Account Opening

Opening a traditional bank account in Hong Kong can be rigorous for non-resident founders, often requiring an in-person interview, a solid business plan, and extensive KYC/AML documentation. However, fintech alternatives like Statrys and Airwallex offer fully remote onboarding with much faster approval times.

Practical Information

Timezone

UTC+8

Business Language

English and Chinese (Cantonese/Mandarin)

Legal System

Common Law

Ease of Doing Business

IP Protection

Hong Kong offers robust intellectual property protection under a common law framework, strictly independent from mainland China. It complies with major international treaties like the Paris Convention and TRIPS.

Double Tax Treaties

57 countries

Notable treaties: Mainland China, United Kingdom, Japan, Singapore, France, Canada

Visa & Residency Options

Investment as Entrepreneurs (GEP)

Allows foreign entrepreneurs to relocate to Hong Kong by establishing or joining a business that makes a substantial contribution to the local economy.

Top Talent Pass Scheme (TTPS)

Aimed at highly skilled professionals and graduates from top global universities, allowing them to explore business and employment opportunities in Hong Kong.

New Capital Investment Entrant Scheme (New CIES)

Grants residency to high-net-worth individuals who invest at least HKD 30 million in permissible financial assets or non-residential real estate.