| Company Name | Relatively flexible naming rules, with no restrictions tied to company scale.Names are approved as long as they are not misleading, similar to government agencies, or duplicated with existing names. They can include country/region names, and words like “International” or “Group” are permitted. | Must follow the format: [Region] + [Trade Name] + [Industry] + Co., Ltd. Trade names cannot duplicate existing ones.Use of words such as “Industrial”, “Group”, or “International” is subject to company scale restrictions.Names prefixed with “China”, “Chinese”, “Central”, “National” require approval from the State Council. |
| Share Capital & Registered Capital | Since March 3, 2014, the par value of shares has been abolished in favor of a no-par value system, providing greater flexibility in share capital structure. Companies are established based on the number of shares issued. | Since July 1, 2024, registered capital must be fully paid within five years from the date of company establishment. |
| Business Scope | Virtually unrestricted. Businesses may list their scope on the Business Registration Certificate if needed (generally not recommended), with a maximum limit of 30 Chinese characters or 60 English letters. | General companies may operate across multiple industries, with specific restrictions applying to certain sectors. Business scope must be stated in standardized terms with no character limit. |
| Registered Address | No mandatory requirement to lease physical office space; virtual office addresses (must be a Hong Kong commercial address) are allowed. | Physical office space rental is generally mandatory, though virtual office addresses are permitted in some cities (e.g., Shenzhen, Guangzhou). |
| Foreign Exchange Controls | Free inflow/outflow and deposit/withdrawal of foreign exchange (only applicable to bank accounts opened locally in Hong Kong). | Subject to strict foreign exchange controls. Enterprises must hold import-export rights, and foreign exchange can only be received/paid after customs declaration of goods or tax withholding. |
| Taxation | Low tax rates; general companies only pay profits tax (equivalent to corporate income tax in Mainland China). A preferential rate of 8.25% applies to the first HK$2 million of profits. | Multiple taxes with relatively high rates and complex structures, including VAT and corporate income tax (standard rate of 25%). |
| Tax Filing | One annual tax return. For newly established companies, the first tax filing accounting period can be extended up to 18 months. | Monthly or quarterly filing based on tax type, with annual final settlement required. |
| Annual Review | Conducted in the year following company establishment. | The original annual inspection system was abolished on March 1, 2014, and replaced with an annual report disclosure system. Annual reports must be filed between January |
