AbacusHKCPA - Company Formation and Company Registration by Hong Kong Accountants (HKCPA)

Abacus CPA
Charity Linking
Tel :
8201 0106
Fax :
3586 8020
Certified Public Accountants

Company Formation


Hong Kong


Limited Company

Hong Kong Company Comparison with BVI Company
Generally, Hong Kong company is more suitable for doing business while BVI company is more suitable for asset holding. However as situation of client varies case-by-case, professional advice should be sought before making decision.

Below comparison is highlight of certain areas and help client to consider using which type of company.
  1. Incorporation Requirement ;
  2. Purpose and Benefit.
Incorporation Requirement (Compare)
Recommendation : BVI company is more simple in incorporation requirement.
 Hong Kong CompanyBVI Company
Minimum No.
of shareholder
  • 1
  • 1
Minimum No.
of director
  • 1
  • 1
Minimum issued
share capital
  • HKD 1
  • USD 1
Company Secretary
  • 1 and should be
    Hong Kong resident
  • Not required
Nationality and address
of shareholder
and director
  • No restriction
  • No restriction
Hong Kong
Registered Address
  • Required
  • Not required.
  • Keeping of Hong Kong corresponding address
    is useful for corresponding with registration agent.
Time required
to Incorporate
  • Ready-made: 1 day
  • Tailor-made: 7 working days
  • Ready-made: 1 day
  • Tailor-made: 12 working days
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Purpose and Benefit (Compare)
Recommendation :BVI company is more suitable for holding of asset. Hong Kong company is more suitable for doing business.
  Hong Kong Company BVI Company
Business Image
  • Better
  • Less good
Resistance of
customer and client
  • Less resistance as registration is open for public search
  • Higher resistance as registration is not open for public search
Risk reduction
  • Same
  • Same
Tax benefit
  • Profits Tax rate 16.5% but exempt for profit not deriving from Hong Kong
  • Profits Tax rate Zero but limited to profit not derived from BVI.
  • Company may still subject to tax of another country.
Asset holding
  • Asset transfer can be achieved by share transfer.
  • Has to pay stamp duty for share transfer.
  • Updated financial statement is required for share transfer.
  • Asset transfer can be achieved by share transfer.
  • No stamp duty and no financial statement is required for share transfer.
Bank account opening
  • Easier and less requirement even for non-Hong Kong resident

More requirement and always request for

  • Personal banker's reference letter of directors.
  • Disclosure of beneficiary owner.
  • Purpose of opening bank account.
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AbacusHKCPA - Certified Public Accountants base in Hong Kong (HK) - ACCA, HKICPA, providing services of

company formation, financial management, business advisory, accounting and auditing.