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Which company is right for you

Hong Kong or Mainland China?

Compare both options side by side and pick the right one.

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Looking up at glass office towers in Hong Kong’s Central district

Hong Kong or Mainland China?

Not sure which one you need? Most international buyers start with Hong Kong. If you plan to sell inside China, you’ll need a Mainland company.

TopicHong Kong companyMainland China company
Best forBuying from China and selling to the rest of the world; holding your international businessSelling, hiring or running an office or factory inside China
Company tax8.25% on the first HK$2 million of profit, 16.5% above that25% standard rate; lower rates for qualifying small companies
Profit earned outside the locationUsually not taxed in Hong Kong, if you qualifyTaxed in China
Sales tax (VAT / GST)NoneYes, usually 6–13%, lower for small businesses
Tax on dividends paid to ownersNoneUsually 10%, sometimes less under tax treaties
Tax on capital gainsNoneYes
Moving money in and outFree; hold and pay in any currencyControlled; payments abroad need paperwork
Foreign ownership100% allowed100% allowed for most business types; some industries are restricted
Sell to Chinese customers and issue Chinese tax invoicesNoYes
Language and legal systemEnglish and Chinese; English common lawChinese; Mainland Chinese law
Yearly upkeepCompany secretary, address, yearly return, audit and tax returnMonthly tax filings, bookkeeping, yearly report and audit

Why Hong Kong works for international traders

  • Low, simple taxes
  • No sales tax
  • No tax on dividends or capital gains
  • Profits from trading outside Hong Kong often aren’t taxed, if you qualify
  • Easy multi-currency banking
  • A global business address next door to mainland factories

Why a Mainland company

  • Sell directly to Chinese customers and issue official Chinese invoices
  • Hire local staff
  • Rent an office or warehouse in your own name
  • Import and export under your own company

This is general information, not tax advice. Tax depends on where your business actually operates. Our accounting team will confirm what applies to you before you register.

See Hong Kong packagesSee Mainland packages

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