Re-domiciliation Regime for Non-Hong Kong Companies
On 23rd May 2025, the Government of the Hong Kong SAR officially announced amendments to the Companies Ordinance to introduce the Re-domiciliation Regime for non-Hong Kong companies.
With the Amendment No. 2 on the Companies Ordinance (“the Amendment Ordinance”) coming into operation, a company incorporated and tax resident outside Hong Kong is enabled to transfer its domicile to Hong Kong.
This regime aims to facilitate the transfer of corporate legal and tax residency for non-Hong Kong corporations to Hong Kong’s tax jurisdiction, through an accessible and cost-effective route, while maintaining their legal identity as a body corporate and ensuring business continuity.
This initiative enhances the city's position as a global business financial hub and as leading destination for business and investment, already renowned for the ease of doing business and its strong tradition of rule of law.
Eligibility requirements to fulfil the transfer are mainly the company type of the overseas company, to be the same or substantially the same as the four specified types of companies under the Companies Ordinance (i.e. private companies limited by shares and public companies limited by shares) and that the outward re-domiciliation is allowed under the laws of the originating domicile.
With the re-domiciliation certificate, and the de-registration from the originating domicile, the applicant becomes a re-domiciled company, which, subject to certain exceptions, is regarded as a company incorporated in Hong Kong for the purposes of the laws of Hong Kong and, consequently, subject to profit tax on profits arising in or derived from the Region, and treated as a Hong Kong resident under comprehensive avoidance of double taxation agreements.
The introduction of the Re-domiciliation Regime represents a pivotal step for Hong Kong in attracting foreign corporations. By simplifying the re-domiciliation process and offering significant tax advantages, companies considering this option can look forward to a supportive regulatory environment and a wealth of opportunities for growth and expansion in one of the world’s leading financial centres.
For further information, please contact Diacron Hong Kong