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Doing online business in Hong Kong and beware of online scams

Hong Kong is well known about its freedom on doing business, while online business is one of the top notch business that attracts foreigners and expatriates to setting up a Hong Kong company.

Here, we would like to highlight several reasons why Hong Kong is a good place to start your online business.

No physical establishment is required

To startup an online business, a physical office perhaps is the least thing you would like to investment as you and your staff can work almost everything and share you project among the team through the cloud or web storage.

You can engage a local agent to setup a private limited company in Hong Kong and provide your company (i) Registered office address; and (ii) Hong Kong company secretary, so that even you don't have a physical establishment in Hong Kong, you can run your business remotely and hire staff overseas without any restriction.

Top ranking on infrastructure quality

Flexible and work globally is the key factor of a successful online business, in terms of react fast to end customers and also to attract talents around the world. According to statista:- Top 100: Ranking of countries according to their quality of infrastructure in 2015, Hong Kong is the global leader in overall infrastructure with a value of 6.69 on a scale of 1 to 7 among 100 countries, and even better than Singapore which ranked number 2 with the score of 6.49.

There are more comments on "Is Hong Kong a good place to start an online business?" from Quora.

Easy to setup, maintain and transfer of Hong Kong company

It is rather easy and economic to setup a Hong Kong company with time frame as short as 1-Day. While thereafter, the annual renewal of the Hong Kong is straight forward, with simple tax structure and tax rate of 16.5% report annually. For transfer of Hong Kong company, owner can sign the relevant documents overseas and pass the signed original documents to Hong Kong agent to proceed the transfer of shares.

You can click this "Link" for more information about Hong Kong company setup.

Stepping stone to reach your Asia opportunities

As per the research report by HKTDC issued on 15 April, 2016 - Topic on Internet Industry in Hong Kong; the Internet continues to penetrate the daily lives of mainland people. The following table shows the extent of different Internet applications on the mainland.

Hong Kong companies have very good knowledge of and connections in the Chinese mainland market. This is an advantage over other foreign companies in seizing further opportunities in the mainland's online market. Also, Hong Kong companies can offer such value-added services as consulting, implementation, integration and training.

Furthermore, some of the Computer and Related Services are on the list of Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), which allows enhanced competitive edges to explore the China and Asia markets.

Potential tax benefits with business-friendly tax system

Hong Kong company can write-off a great number of expenses against the corporation, which is a distinctive advantage of using Hong Kong company as your business vehicle.

If you are doing e-commerce without any physical presence in Hong Kong, you may also apply for offshore claims and if success, your Hong Kong company can enjoy $0 profit tax from any revenue being generated.


In view of the many benefits of setting you your online business in Hong Kong, harmful companies might take this advantage by means of scams to make easy money. To protect the general public interests, Hong Kong government has put continuous to provide relevant resources and materials to uplift the awareness, below some of the information source.

InfoSec website news and events:-


Beware of online scams:-


The Alert List is a list of entities which have come to the attention of the SFC because they are unlicensed in Hong Kong and are believed to be, or to have been, targeting Hong Kong investors or claim to have an association with Hong Kong:-