Setting Up a Business in Hong Kong: What is the Full Cost? 

Starting a business in Hong Kong involves more than the headline registration fees, and understanding the full Hong Kong company setup costs is essential for accurate budgeting. This article breaks down every major expense category involved in getting a company off the ground, from incorporation and visa fees to office space and labor costs. 

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Setting up a business in Hong Kong is relatively straightforward compared to many other jurisdictions, with the city offering a streamlined incorporation process and a transparent cost and fee scheme. However, headline statutory fees of registration can be misleading. Additional costs for employment, office space, professional services, and ongoing compliance obligations can add up quickly, and businesses that fail to account for these expenses early risk being caught off guard.

This guide breaks down the full range of costs associated with setting up a business in Hong Kong, from initial registration fees and visa costs to salaries, office rents, and accounting obligations, providing a clearer picture of what must be budgeted for before taking the plunge. 

Company registration and incorporation 

Business registration fees in Hong Kong are the same regardless of the industry or sector the company is in. 

The total statutory cost for company registration in Hong Kong in FY 2026/27 is HK$3,895 (US$506), if the application is filed electronically. Higher fees are charged for paper applications. 

The fee breakdown for the electronic filing is as follows: 

• HK$1,280 (US$166) registration fee
• HK$265 (US$34) fee for the lodging of an application and accompanying documents
• HK$2,350 (US$306) fee for a one-year business certificate 

Many companies hire external agencies to handle the business registration procedures, which will incur additional agency fees. Businesses hiring an agency should inquire whether or not quotes provided for registration services include the statutory registration fees to avoid unexpected additional costs. 

Labor and payroll 

If you are hiring employees for your business in Hong Kong, there are a range of additional costs you will have to consider. If you are hiring foreign workers, you will also need to cover the costs of work visa applications and, in some cases, relocation expenses.

Hong Kong is a relatively high-income jurisdiction with average salaries exceeding those of neighboring markets. The average monthly salary across all selected industry sections is HK$19,683 (US$2,559), though this varies considerably by sector and seniority.

Salaries also differ significantly by occupational group and sex. Supervisory and technical workers command the highest average monthly salaries at HK$26,744, while miscellaneous non-production workers earn the least at HK$14,702.  

 Hong Kong’s high cost of living means that competitive salary packages are often necessary to attract and retain quality staff. This is particularly relevant when recruiting highly skilled foreign talent, who will typically factor the cost of relocating and living in Hong Kong into their compensation expectations. 

There are also several costs beyond base salary that employers must take into consideration, including: 

• MPF contributions;
• Recruitment expenses;
• Background verification;
• Onboarding and training costs;
• Office infrastructure and equipment; and
• Employees’ compensation insurance. 

Payroll 

Employer burden rates are relatively low compared with other developed economies, estimated at roughly five percent of salary excluding severance pay, long service pay and insurance costs. Beyond Mandatory Provident Fund (MPF) contributions, employers should also budget for the following statutory obligations: 

• Employees’ Compensation Insurance: mandatory for all employers, covering work-related injuries and occupational diseases;
• Severance and Long Service Pay: payable to eligible employees upon redundancy or qualifying termination, capped at HK$390,000;
• Annual Leave and Statutory Holidays: employees are entitled to 7–14 days of paid annual leave depending on length of service, plus 13 statutory holidays per year; and
• Maternity and Paternity Leave: 14 weeks of paid maternity leave and 5 days of paid paternity leave.

Visas 

If you are hiring foreign workers, you will also need to pay visa fees as well as agency fees if engaging an external company to handle documentation and submission.

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The total cost of a long-term employment visa is HK$1,900, which includes a non-refundable application fee and a visa issuance fee. The application fee is paid at the time of submission, while the visa fee is paid when the visa is granted. 

While visa costs may appear to be minimal compared to other business expenses, they can accumulate to a not insignificant amount, especially if hiring multiple foreign workers and sponsoring dependents as well. 

Registration of identity cards for foreign employees is free. Application for a Hong Kong identity card is mandatory within 30 of arrival in Hong Kong for anyone planning on staying in Hong Kong for more than 180 days.1 

Work or office space 

Due to the high cost of real estate in Hong Kong, renting or purchasing office or work space represents one of the higher overhead costs for businesses operating in the city. 

Rents for private office space vary significantly depending on the location and the quality of the building. In April 2026, the most expensive average monthly rent for a Grade A office building within the city’s main commercial districts was HK$887 (US$113) per square meter in Central, while the cheapest was HK$300 in Kowloon Bay/Kwun Tong.  

Office space is predominantly leased rather than purchased in Hong Kong, due to the high cost of acquisition and the limited stock available for sale. For businesses seeking to purchase, prices vary considerably by grade and district, with 2025 annual averages showing Grade A office space in Central averaging HK$227,204 per square meter, while more affordable options are found in districts such as Kowloon Bay/Kwun Tong at HK$111,223 per square meter.  

Virtual offices 

Given the high cost of renting office space in Hong Kong, more and more businesses are opting for a virtual office, allowing them to have a physical address for official correspondence while employees work most of the time remotely. A virtual address can also serve as the company’s registered address for statutory purposes, making it a practical and cost-effective option for newly incorporated businesses that have not yet secured a physical office. 

The cost of a virtual office varies depending on the provider and the business’s specific needs, with address-only plans going for as little as HK$682 (HK$8.67) per month and more complete plans costing over HK$2,000 (US$255).  

Corporate compliance 

Company secretarial services 

Hong Kong law requires every company to appoint a company secretary from the date of incorporation. While it is not obligatory to do so, many companies choose to hire external secretarial services to handle statutory compliance and filing obligations, with providers typically charging a retainer ranging from a few thousand to over HK$15,000 per year. Many providers also charge additional fees for ad-hoc work such as changes to company particulars, preparation of board resolutions, or assistance with share transfers. 

Initial accounting system setup 

Setting up an accounting system at the point of incorporation typically involves engaging an accountant to establish a chart of accounts, configure accounting software, and put bookkeeping processes in place. Fees for this work typically range from HK$3,000 (US$382) to HK$10,000 (US$1,275) depending on the complexity of the business structure and the software platform selected. 

Initial financial structure advice 

Professional fees may also be incurred for advice on initial capital structure, share allotment, and the accounting treatment of founding transactions at incorporation. This work is commonly handled by an accountant or corporate services firm and is particularly relevant for businesses with multiple shareholders, foreign investment, or complex holding structures. 

How Dezan Shira & Associates can help 

Navigating the costs and administrative requirements of setting up a business in Hong Kong is considerably more straightforward with the right advisory partner. Dezan Shira & Associates is one of Asia’s leading firms for foreign business establishment, offering fully integrated corporate setup solutions that cover everything from initial structuring advice through to ongoing compliance.  

Our services for companies establishing in Hong Kong include: 

• Corporate structuring and establishment advice
• Company incorporation and registration
• Corporate secretarial services, including governance system setup, amendments to company registration, and business compliance management
• Organizational restructuring, divestiture, and company deregistration and liquidation 

To find out how Dezan Shira & Associates can support your Hong Kong business setup, contact us at hongkong@dezshira.com.

Our Business Advisory service supports companies in establishing and growing their presence in Hong Kong, Asia’s leading international business and financial hub. We provide advice on corporate structuring, company formation, due diligence, commercial and employment contracts, intellectual property protection, and M&A transactions, helping businesses navigate Hong Kong’s regulatory environment and leverage its role as a gateway to the Chinese Mainland and the wider Asia?Pacific region.

Gigi Wong

Manager

Talk to an expert at Hongkong@dezshira.com

Or request a consultation at +852 2376 0335

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