Navigating Hong Kong Startups 2025: What New Business Founders Need to Know

Looking to start your own business in Hong Kong? The city is one of the leading economic centres in the world. With low tax rates and its close proximity to China and other leading Asian financial markets, Hong Kong is an attractive start-up city. In 2023, the city recorded 4257 new registered start-ups, up from 2985 in 2022. The year-over-year increase shows that Hong Kong continues to welcome new blood into the business landscape.

What do new founders need to know when launching a new business in Hong Kong in 2025? From visa requirements, business plans, funding and annual financial reporting obligations, we’ve summarised all the information you need to get your company started on the right track.

1. Visa Requirements for Entrepreneurs

In 2023, 68 per cent of start-up founders were from Hong Kong, 6 per cent were Hong Kong returnees and 26 per cent of the entrepreneurs identified as non-locals. If you have Hong Kong permanent residency, you won’t have to worry about the visa process. However, if you’re a foreigner looking to start a business in Hong Kong — or call the city your new home — this section’s for you.

Investment as Entrepreneurs

Processing time: About four weeks

This visa allows foreign entrepreneurs to live and work in Hong Kong if the applicant can prove they’ll make a substantial contribution to the city's economy. To apply, the applicant must submit a two-year business plan alongside various statements such as a profit-and-loss account, cash flow, and balance sheet. However, this scheme does not apply to mainland Chinese residents (unless they have a permanent residence overseas) or nationals of Afghanistan, Cuba, and North Korea.

The government also has a business start-up section within this visa scheme. If the start-up is backed by a government programme with a rigorous vetting and selection process, the application will be considered favourably. Some examples of these government-backed programmes include the StartmeupHK Venture Programme administered by InvestHK and the Cyberport Incubation Programme. However, we’ll cover government funding for start-up businesses in Hong Kong more extensively in the latter part of the article.

Other visa schemes, such as the New Capital Investment Entrant Scheme (New CIES), Top Talent Pass Scheme, and Quality Migrant Admission Scheme, are also some examples of alternative visas for talent admission or capital investment. However, if you’re looking to enter Hong Kong primarily as an entrepreneur, the Investment as Entrepreneur visa would be the most suitable and straightforward option.

2. Crafting a Strong Business Plan & Application

What does a strong business plan entail? If you’re looking to apply for the Investment as Entrepreneurs visa, a business plan is essential to the application. According to the Hong Kong immigration department, below is what you’ll have to include in your business plan.

6 Must-Haves in Your Hong Kong Business Plan

1. Nature of business
2. Market analysis
3. Market positioning
4. Business direction
5. Sales targets
6. Product Marketing Strategy

Alongside your business plan, applicants must also include various documents to support their application including a profit-and-loss account statement, cash flow statement and more. For more details on what to include in your Hong Kong entrepreneur visa, below is a quick checklist on what you’ll need to include.

8 Supporting Documents to Include in Your Hong Kong Entrepreneur Visa Application

1. Two-year forecast profit-and-loss account statement
2. Anticipated business turnover
3. Cash flow statement
4. Balance sheet
5. Financial resources
6. Capital investment sum
7. Number of jobs created locally
8. Introduction of new technology or skills (if applicable)

While the list above summarises your business details, other forms and personal documents are also needed in the application to show the government who you are. From a recent photograph, a photocopy of travel documents, academic qualifications and work experience, business registration certifications and more. You’d also need a photocopy of tenancy agreements or office set-up such as proof of a Coworking Space or Private Office.

3. Choosing the Right Company Type

In Hong Kong, there are several different company structures to consider when registering your business. However, the main ones boil down to the following: Sole proprietorship, partnership and incorporated companies.

Sole Proprietorship

This is the simplest form of business entity. Suited for small businesses with a sole owner. While it’s easy to set up and manage, it offers no liability protection.

Partnership

In a partnership, two or more partners share ownership and responsibilities. Partnerships can be either general or limited. Liabilities are shared amongst general partners, while limited partnerships offer some liability protection.

Incorporated Company

An incorporated company, typically a private limited company, is more suited for larger-scale operations. While this type of company requires to adhere to more regulations, higher setup and maintenance costs, it also offers liability protection.

As of April 20224, the business registration fees are $2,200 per annum for a one-year certificate, while a three-year business registration will cost HK$5,870. On top of that, a small levy fee is also charged.

For more detailed information, we’ve written a guide on registering a local business in Hong Kong, which will help you make your business idea official. Need a business address to register your company? Our Virtual Offices are a great option for entrepreneurs who aren’t ready to commit to a physical office space yet are looking for a prestigious office address in Hong Kong.

4. Funding Your Startup

Hong Kong welcomes new talent and offers a variety of different funds to support new start-up founders. From government grants to angel investors and incubation programmes, we’ve summarised a few options for entrepreneurs to consider below.

Government Grants and Subsidies

The Hong Kong government offers various funding programs to support start-ups. Entrepreneurs who are accepted into government-funded funding schemes are also more likely to be considered favourably in their Investment as Entrepreneur visa application.

Some funding scheme examples:

1. StartmeupHK Venture Programme administered by InvestHK
2. Incu-App, Incu-Bio and Incu-Tech programmes administered by the Hong Kong Science and Technology Parks Corporation
3. Cyberport Incubation Programme
4. Enterprise Support Scheme administered by the Innovation and Technology Commission
5. Design Incubation Programme administered by the Hong Kong Design Centre

Angel Investors and Venture Capital

Pitch your idea to angel investors and venture capitalists in Hong Kong. The city is home to a broad network of investors such as the Hong Kong Business Angel Network and the Venture Investors Alliance Of Hong Kong. Here’s a more detailed list of angel investors, Venture Capitalist & Corporate Venture Capital (CVC).

Incubation & Acceleration Programmes

Incubation and acceleration programmes are designed to help entrepreneurs execute their business plans. InvestHK has summarised a list of incubation programmes in Hong Kong such as Accenture FinTech Innovation Lab Asia Pacific and Brinc.

Bank Loans and Private Equity

Public programmes are often competitive, and applications could be time-consuming. If you’re looking to speed up the funding process, consider traditional bank loans and private equity investments. Banks such as HSBC, Standard Chartered and DBS all offer business instalment loans.

5. Annual Financial Reporting Obligations

Companies are required by law to prepare annual financial reporting statements and have them audited. These audited financial statements must then be submitted to the Inland Revenue Department during tax filing. Late submissions or inaccurately submitted financial reports may result in penalties and even imprisonment.

Who is obligated to report their annual financial statements?

Public companies incorporated in Hong Kong and limited by guarantee are required to submit annual financial statements. Sole proprietorships and partnerships are not subject to the same level of reporting requirements if your annual business revenue is less than HK$2 million. However, you may still be required to prepare them in case the inland revenue department asks to audit your tax return.

What Business Founders Need to Record

To prepare accurate financial reports, detailed records of business transactions, including income, expenses, and financial statements must be kept. All receipts, invoices, bank statements and payroll should also be recorded.

Financial Statement Reporting Standards

Financial reporting is segmented into three standards, depending on your company size and annual revenue:

• Full Hong Kong Financial Reporting Standards
• HKFRS for Private Entities
• Small and Medium-Sized Entity Financial Reporting Framework and Financial Reporting Standard

Despite the headaches of starting a business in Hong Kong, the city offers countless rewarding and exciting opportunities. With our list of tips in mind, you’ll be able to navigate through the start-up scene in 2025 in no time. If you need a helping hand, however, The Executive Centre offers Business Concierge services, allowing you to stay focused on your business while we take care of all the admin. By joining the TEC Community, you will also get access to our professional business network, uncover partnership opportunities with like-minded entrepreneurs and seasoned professionals.

With Centres located across 36 cities, we’re experts in starting and managing businesses. From accounting services and people management to company set-up and operational support, we’re here to help empower your business every step of the way.