Redomiciliation Made Simple: Why Hong Kong Leads The Way

With regulatory, operational, and administrative pressures mounting worldwide, international companies are increasingly seeking jurisdictions that offer clarity, efficiency, and credibility. Following the introduction of a new inward redomiciliation regime in May, Hong Kong has reinforced its position as a future-proof jurisdiction, combining global credibility with cost-effectiveness and attracting professionals across a range of sectors, from law and asset management to banking.

An ideal gateway for businesses looking to consolidate or reposition their corporate structures without disrupting strategy or efficiency, Hong Kong presents four compelling reasons to consider it as your new domicile.

Clear Corporate Taxation

Hong Kong’s territory-based tax regime helps provide clarity and simplicity, reducing potential compliance risks. Unlike jurisdictions that tax based on residence or domicile, taxation is applied on a two-tiered profits basis:

• Profits sourced in Hong Kong - Businesses with management, control, and activities carried out in Hong Kong, the first HKD 2 million of assessable profits are taxed at 8.25% and anything above the threshold is then taxed at 16.5%.

• Profits sourced outside Hong Kong - Profits generated, and activities conducted outside the territory, are generally not subject to Hong Kong tax. It is essential to note that tax obligations may still arise in the originating jurisdiction, and companies redomiciling to Hong Kong will also be subject to any international tax compliance agreements to which Hong Kong is a party.

Reduced Regulatory Burdens

The jurisdiction offers a flexible corporate framework with straightforward statutory obligations, making it easier for internationally operated businesses to manage their structures. Management and control can be exercised from outside the territory, providing added operational flexibility. Key requirements include:

• Local presence - A Hong Kong company must have a company secretary and a registered office address (both of which we can provide). Various statutory registers, such as the Significant Controllers Register, must be maintained in Hong Kong.
• Directors - At least one natural person director must be appointed, with no restriction on nationality.
• Shareholding - Corporate shareholding is permitted, including sole corporate shareholders.

Robust Financial Reporting

Hong Kong is recognised globally for its strong corporate governance standards and alignment with international practices such as IFRS. Its efficient and reliable governance framework helps reduce the administrative and cost burdens often encountered in other highly regulated jurisdictions. Companies are required to:

• Maintain proper books and records in line with statutory requirements.
• Prepare audited financial statements, which support corporate credibility while remaining relatively cost-effective.
• File annual returns with the Companies Registry and the Inland Revenue Department.

Business-first efficiency

The streamlined redomiciliation process prioritises speed and minimal disruption for efficient company set-up:

• One submission - A single online or hard-copy application, with supporting documents and fees, covers both redomiciliation and business registration.
• Quick turnaround - Applications are typically processed within a matter of weeks
• Clear responsibilities - Due diligence remains with the company and its service providers, ensuring a transparent, efficient onboarding process.

Are you eligible? 

No economic substance is required, but applicants must:

• Come from a jurisdiction that permits redomiciliation to Hong Kong.

• Be the same as, or equivalent to, one of the four company types under Hong Kong law: private/public company limited by shares, or private/public unlimited company with share capital.
• Submit a legal opinion from a practitioner in the company’s current jurisdiction, issued within 35 days of the application, confirming compliance with eligibility criteria.

• Secure shareholder approval via a resolution passed by at least 75% of eligible shareholders.

• Notify all creditors before applying and obtain the board’s confirmation that the company can meet its debts for 12 months from the application date, ensuring financial solvency, creditor protection, and that the application is made in good faith.

How can we help

Making the move to Hong Kong offers clear advantages, including strategic consolidation guided by careful consideration of long-term business goals. More importantly, it allows businesses to safeguard their identity and integrity while leveraging the benefits of one of the world’s leading financial centres.

At Suntera Global, we make this transition seamless, handling every step of the process to ensure a smooth and efficient redomiciliation. We can support you by:

• Liaising with the Hong Kong Companies Registry to facilitate the redomiciliation process.
• Providing local company secretary and registered office services.
• Assisting with audited accounts in line with regulatory requirements.
• Ensuring compliance with local laws and international best practices
• Coordinating with your legal team to handle legacy structures and leveraging our in-house expertise where applicable.

Contact Sebastian Turner, Managing Director of our Hong Kong office, to discuss how we can support your redomiciliation journey.