HK Ltd via Osome SG — Chinese Cross-Border Founders
Chinese cross-border founders form Hong Kong Ltd companies for territorial taxation, USD banking (HSBC, Standard Chartered), and regional proximity to mainland customers. Osome SG (also covering HK) handles formation, secretary services, and IRD filings for HKD 9,800+/year.
Under Hong Kong's territorial system, IRD taxes only HK-source profits at the two-tier rate: 8.25% on the first HKD 2M and 16.5% above. Offshore-source profits are exempt if the offshore claim is successful — requires evidence of operational activity outside HK.
China side: SAFE Circular 37 mandates filing for outbound investment structures; PRC Bulletin 3 (2020) taxes worldwide income of Chinese tax residents.
Model the full outlay, not just the setup fee
- SetupOsome (Singapore) setup$1,650
- AnnualYear 2 renewal$1,080
What the tax authority sees
Hong Kong Ltd applies territorial taxation: only Hong Kong-source profits are taxed by the IRD at the two-tier rate 8.25% (first HKD 2M) / 16.5% (above); offshore-source profits generally exempt on successful claim.
PRC individual foreign income tax (Bulletin 3, 2020) applies to worldwide income for tax residents; SAFE Circular 37 must be filed for outbound investment structures.
HK Ltd suits Chinese cross-border founders needing USD banking + territorial exemption; SAFE Circular 37 filing required for outbound investment structures.
- 01PRC individual foreign income tax (Bulletin 3, 2020) applies to worldwide income for Chinese tax residents
- 02SAFE Circular 37 must be filed for outbound investment structures
- 03HK IRD offshore claim requires operational substance and evidence of non-HK source
- 04IRD BEPS 2.0 enhanced substance rules from 2024 tighten offshore claims
From filing to funded bank account
Hong Kong Ltd vs UAE Free Zone (MEYDAN)
FAQ
Two-tier system: first HKD 2 million of assessable profits at 8.25%, remainder at 16.5%. Applied per group; only one entity per group can benefit from the low tier. IRD assesses annually via BIR51 profits tax return.
Start filing with Osome (Singapore)
Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.