Hong Kong Gaming Company Formation Process 2025: Enjoy the Best Tax Incentives in the Region!

Are you looking for a country to establish a foreign game company? Which foreign country is suitable and optimal for an international game company? Are businesses confused when choosing a country to establish and the process of establishing a game company abroad? Hong Kong, a country with a developed game market economy, preferential tax policies, and a transparent legal system, is an ideal environment for game businesses to establish companies in Hong Kong. In this article, GLA will help businesses grasp the following important information:

• Why should gaming businesses choose Hong Kong to open an overseas company?
• What conditions do game businesses need to prepare to establish a game company in Hong Kong?
• The complete process of establishing a gaming company in Hong Kong, from A to Z. 

1. Reasons why game companies should set up a company in Hong Kong

Gaming companies should incorporate in Hong Kong for the following reasons:

• 100% foreign ownership of Hong Kong company: A gaming company established in Hong Kong will have 100% ownership of the company even if it is a foreign Individual/legal entity. 
• Potential gaming market: Hong Kong is a country with a potential gaming market, with total revenue expected to reach 2025 billion USD in 410.
• Attractive tax incentives: Hong Kong has the lowest preferential tax policy in the region, making it an ideal country to enjoy a policy of no VAT, no tax on foreign-sourced income. 
• A diverse banking system to suit every need and size of company: Hong Kong ranked first in the Asia-Pacific region and third globally in the Global Financial Centres Index (GFCI) 36 Report, published on 24/09/2024 by London-based think tank Z/Yen and the Shenzhen-based China Development Institute. Hong Kong has a system of traditional and digital banks that are reputable and world-renowned, licensed and regulated by the Hong Kong Financial Authority. 
• The cost of maintaining and operating a Hong Kong company is lower than some other countries: After establishing a Hong Kong company, the cost of maintaining and operating a Hong Kong company only includes 1 secretary and audited financial statements, compared to other countries (eg Singapore) and maintaining a local director will require higher company maintenance costs. 

2. The most preferential tax rate system in the region when establishing a gaming company in Hong Kong

Businesses setting up gaming companies in Hong Kong will enjoy tax rates in hong kong Best deals in Asia, including:

• Low personal and corporate income tax rates.
• There is no capital gains tax.
• No VAT, sales tax.
• There is no withholding tax on dividends, interest or social security benefits.

To compare personal and corporate income tax rates in countries around the world (Hong Kong, Singapore, USA, etc.), Businesses use GLA's All-In-One Tax Rate Comparison Tool to select and evaluate the preferential tax rate suitable for the Enterprise. 

3. Hong Kong gaming company receives payments from Google, Apple does not apply VAT 

In particular, for Game Businesses that regularly run Facebook Ads, Google Ads or receive revenue from Facebook, Google, Apple, establishing a Game company in Hong Kong will help the Business reduce 5% VAT on running ads or receiving revenue from Google, Apple, Facebook because Hong Kong does not apply VAT. 

Game businesses can refer to the article “Hong Kong - the country that does not collect 5% VAT on Facebook and Google ads"

Businesses use the VAT comparison tool to compare VAT rates in countries around the world with CGLA VAT comparison old man.

4. Conditions to prepare when establishing a game company in Hong Kong

Requirements to prepare when establishing a gaming company in Hong Kong include:

• Hong Kong company name: English or Chinese.
• At least 1 corporate shareholder.
• A Hong Kong company secretary is required.
• Company address in Hong Kong.
• Minimum capital 1 HKD.

5. How much does it cost to run a gaming company in Hong Kong compared to other countries?

The cost of maintaining a gaming company in Hong Kong will include:

• Hire a game company secretary in Hong Kong annually.
• Provide Hong Kong financial reporting services.
• Conduct annual audit reports.

Compared to other countries such as Singapore and the US, the cost of maintaining a company in Hong Kong will be less expensive because in addition to tax incentives in Hong Kong, Hong Kong companies do not need to hire a local director. For Singapore, this is a fixed cost. 

For detailed advice on the cost of establishing a gaming company in Hong Kong, contact GLA experts for advice and detailed quotes depending on your business needs. 

6. Process and procedures for establishing a game company in Hong Kong

7. Frequently asked questions when setting up a gaming company in Hong Kong

Highlights

• Establishing a gaming company in Hong Kong will enjoy attractive tax incentives, no VAT, no tax on foreign income, no contractor tax.
• Hong Kong gaming companies running Google Ads and Facebook Ads do not apply VAT advertising tax.
• Opening a bank account for a game company in Hong Kong and registering a DUNS code and Google AdMob are important points to help businesses upload apps and games to the App Store and CH Play.
• GLA will support Businesses Established company in Hong Kong Fast, accurate, legal, with the best quality and price.