Open a Hong Kong company (Enjoy 0% tax on Google Ads invoices)
Hong Kong 
Updated on January 20 
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content
- 1. Overview of Google Ads and Google Admob in Hong Kong you should know
- 2. Top XNUMX reasons why you should open a Hong Kong company for Google Ads and Google Admob
- 3. How to open a Hong Kong company for Google Ads, Google AdMob registration? (XNUMX easy steps)
- 4. How can we help you incorporate your Hong Kong company to register for Google Ads, Google AdMob?
- 5. FAQ about Hong Kong company formation to benefit from XNUMX% VAT benefit
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Each country has different VAT or GST, Sales tax regulations and tax rates.
In Singapore, the GST for Google and Facebook ads is 9%. In Vietnam, the VAT for advertising is 5%. However, in Hong Kong, the VAT for Google Ads and Google Admob services is 0%.
<p>Because of this, many foreign companies running Google Ads and Google Admob choose to set up a company in Hong Kong to benefit from the 0% VAT incentive. </p> <p>In this article, GLA will explain:</p>
- Why businesses and investors running Google Ads and Google Admob accounts choose Hong Kong.
- How can you register a Hong Kong company to run Google Ads, create a Google Admob account and enjoy 0% VAT incentives.
1. Overview of Google Ads and Google Admob in Hong Kong you should know
1.1 What is Google Adwords?
Google Ads is Google's online advertising program. Through Google Ads, businesses can create online ads to reach customers at the exact moment they are interested in the products and services the business offers.
Google Ads is a form that Businesses can use to promote their business, help sell products or services, raise awareness and increase traffic to the company's website.
1.2 What is Google Admob?
Google AdMob is the way to generate revenue from your Company's mobile app with high-quality in-app ads.
Software companies, game developers can generate revenue by combining with ads from global advertisers. Each ad impression on the application, the number of viewers, and purchases from ads are part of the revenue of Google Admob registered companies.
1.3 What is value added tax (VAT) or goods and services tax (GST) on invoices and revenue?
<p>Value-added tax (VAT) or goods and services tax (GST) is an indirect tax applied to goods and services consumed within a country. </p> <p>If you use a service in any country which apply the sales tax regulations. You have to pay that sales tax to the goverment. In this article, we will refer to the act of using Google Ads and Google Admob as a service</p>
1.4 What is the tax rate for value added tax (VAT) or goods and services tax (GST)?
Each country will have different regulations on applicable policies and rates of value added tax (VAT) or goods and services tax (GST).
1.5 How much is the value added tax (VAT) or goods and services tax (GST) for advertising services payable to Google?
- All invoices Google issues to companies for advertising services from Google will comply with each country's value-added tax (VAT) or goods and services tax (GST) regulations.
- For example:
- In Vietnam, the VAT rate for Google Ads advertising services is 5% (effective from November 1, 11).
- In Singapore, GST rate for Google Ads advertising services from 9% from 2024 onwards
- Meanwhile, in Hong Kong, the VAT policy for Google Ads Hong Kong is 0% applies to all goods and services.
<p>Therefore, businesses in industries like gaming or companies using Google Ads advertising to reach more customer should open a company in Hong Kong to benefit from the 0% VAT incentive.</p>
2. Top XNUMX reasons why you should open a Hong Kong company for Google Ads and Google Admob
2.1 Attractive tax incentives for Hong Kong companies
Registering a Hong Kong company for Google Ads and Google Admob provides significant tax advantages, including:
- 0% Withholding tax.
- 0% Capital gains tax .
- 0% VAT/GST.
- 0% Corporate Income Tax (for offshore income). For income generated within Hong Kong, corporate tax ranges from 8,5% to 16.5%, the lowest in Asia. For a tax comparison between Hong Kong, Singapore, and the U.S., check out our amazing article: Hong Kong corporate income tax.
If you are confused about tax rates in Hong Kong and other countries, please refer to the following information: Tax comparison table of Hong Kong and Singapore, US.
2.2 VAT benefits for Hong Kong companies
If your company is registered in Hong Kong and uses Google Ads or Google AdMob, you will benefit from a 0% VAT incentive on Google service invoices.
- Business & Investment Open a company in Singapore will be charged 9% GST on Google services.
- Business & Investment Open a company in Vietnam will be charged 5% value added tax (VAT) for Google services.
2.3. Diverse banking options
- Hong Kong is a global financial hub with a highly developed banking system. This gives businesses in Hong Kong more banking options to opening a company bank account in Hong Kong.
- For businesses using Google Ads & Google Admob, having a Hong Kong bank account makes it easier to receive payments from Google and pay for ad services.
- You can choose to open a corporate bank account with long-standing physcial banks in Hong Kong or open a bussiness bank account with a licensed digital banks. physical bank or online banking.
At GLA, we have a team of professional and experienced consultants and is a partner of major banks in Hong Kong, Singapore, the USA, etc. who can advise you choose the best bank account for your needs.
Need help choosing a bank? Check out : our international bank comparison table! Check outto make the best choice for your individual or business needs.
Contac our experts today to receive essential insights that can change your business.
2.4 Access more Google products and services
- Business registering Google Ads and Google Admob through a Hong Kong company can access all Google products and services, and receive direct support from Google's Hong Kong office.
- In addition, Google's Hong Kong office provides resources and support for businesses to make the most of Google's platform. This is also one of the advantages that makes many businesses choose to open a company in Hong Kong to register for Google Ads and Google Admob.
- In particular, only in the Singapore or Hong Kong market, , Google allows companies incorporated here qualify for exclusive POSTPAID Google Ads.
- Google Invoice is a Google payment method that has many advantages over prepaid and postpaid accounts. However, Google Invoice only applies to corporate accounts, so opening a company in Hong Kong also helps you to use Google Invoice payment method easily.
- Thus, Hong Kong is the best choice for businesses in gaming & advertising due to 0% VAT, 0% corporate tax (for offshore income), and exclusive Google benefits.
2.5 Transparent and safe legal polices in Hong Kong
- Hong Kong provides a clear and simple legal framework for foreign companies.
- The Hong Kong government adheres to its own policies and has support from international organizations, especially the WTO.
- Foreign companies can also easily engage in financial, strategic and business activities in Hong Kong.
- Hong Kong’s legal policies ensure low operating costs, transparency, and strong corporate rights protection.
2.6 Hong Kong's infrastructure is developed and its geographical location is favorable.
- Hong Kong has a highly developed infrastructure and is a gateway to mainland China and other Asian markets.
- Hong Kong is also a major transport hub, with an extensive network of flights, trains and rail connecting Hong Kong to the rest of Asia.
2.7 Hong Kong has policies to attract and facilitate foreign investors to develop.
- The Hong Kong government has long had policies to attract foreign companies and create favorable conditions for their development. These policies have helped make Hong Kong one of the world's top financial and business centers.
- On 14 October 10, Invest Hong Kong (InvestHK) held a joint seminar to update the international business community in Hong Kong on the latest foreign investment policies and business environment in the Mainland.
- Hong Kong is considered one of the most competitive economies in the world, ranked seventh globally, and third in Asia after Singapore, China according to the Global Competitiveness Report 2023 published by the International Institute for Management Development (IMD).
<p>That is why, establishing a company in Hong Kong and registering for Google Ads and Google Admob presents significant opportunities for businesses.</p>
3. How to open a Hong Kong company for Google Ads, Google AdMob registration? (XNUMX easy steps)
To support businesses to open companies in Hong Kong with cost optimization approach, GLA offers the following process:
Step 1: Register company name
You need to choose a name to register a Hong Kong company in compliance with the following requirements:
- The name can be in English, Chinese, or both.
- Company name can not combine English words, letters and Chinese characters
- An English name must end with "Limited", or the Chinese equivalent for a limited company.
- The name should match the company type. For example, a Limited Liability Company (LLC) must end with "Limited" or the equivalent Chinese character.
- If using a Chinese name, the "New Sai Ming" font is recommended for traditional characters.
- Names will be rejected if they are duplicated, offensive, or against public interest.
Step 2: Register the company with the Company Registrar
Once we help you get approval for your company name, we help you prepare documents and submit an application to the Companies Registrar to obtain a Hong Kong company incorporation certificate.
Step 3: Receive certificate of company establishment
<p>Within 5-7 working days after submitting the company registration application, you will receive the Hong Kong Company Incorporation Certificate. </p> <p> The certificate is issued annually and must be renewed every year.</p>
This certificate allows you to register and operate Google Ads and Google AdMob accounts. It includes key company details such as name, business registration, and registered address.
Step 4: Register with the Hong Kong Inland Revenue Department
You need to register and declare with the Hong Kong Inland Revenue Department to apply for a Business Registration Certificate. The registration number on the Business Registration Certificate is also your company's Hong Kong corporate tax number.
<p>Annual audits are mandatory for Hong Kong companies. Only financial statements audited by Hong Kong-certified auditors can be used for tax filing.</p> <p> We will help you prepare audited financial statements with our Hong Kong auditors.
Step 5: Open a corporate bank account
After obtaining a Hong Kong business registration license, your company must open a corporate bank account to send, receive, and manage Google Ads and Google AdMob payments.
- There are XNUMX types of bank account you can choose: An account with a physical bank or an account with a digital bank.
- Physical bank accounts take a long time to open (1-3 months), require strict approval process, rigorous interviews, and high minimum balance requirements with higher transfer fees and account maintenance fees than digital bank accounts.
- Digital bank accounts have quick opening times (1-2 weeks), quick approval requirements, no minimum balance requirements, multi-currency payments, low transfer and account maintenance fees.
- If your company is eligible via our rigorous KYC check, we can recommend you to open both physical and digital bank accounts to ensure smooth transactions without delays from traditional bank approvals.
4. How can we help you incorporate your Hong Kong company to register for Google Ads, Google AdMob?
<p>With a team of professional and experienced consultants, GLA has successfully helped many foreign investors and enterprises open Hong Kong companies to register for Google Ads and Google AdMob. </p> <p> We can help you</p>
- Register a company in Hong Kong fast an legally.
- Support with our cost-efficient tax accounting services and auditing services
- Set up your financial system in compliance with HFRS with our QuickBooks online accounting software for Hong Kong businesses;
- Open bank accounts with physical banks and digital banks for Hong Kong companies in financial centers such as: USA, Singapore, Hong Kong.
- Provide consultation and ongoing support throughout the registration process and after establishing the Hong Kong company.
5. FAQ about Hong Kong company formation to benefit from XNUMX% VAT benefit
1. How long does it take to open a company in Hong Kong with our support?
We can help you set up your company in Hong Kong in 1-2 weeks.
2. What kind of bank account you can open for your Hong Kong company to register for Google Ads, Google Admob?
Individuals/Businesses opening a company in Hong Kong to register for Google Ads, Google Admob can choose from the following types of bank accounts:
- Physical banks in financial centers such as: Singapore, USA, Hong Kong;
- Online banking in financial centers such as: Singapore, USA, Hong Kong, etc.
Companies establishing companies in Hong Kong to register for Google Ads, Google Admob have many options for opening bank accounts, however, recently, policies and procedures for opening physical bank accounts have encountered many difficulties in preparing documents, approval procedures and opening time.
Businesses setting up companies in Hong Kong can consider opening online bank accounts in countries such as: Singapore, Mỹ, Hong Kong, etc. have licenses, licenses and approval time, opening an online account is quick (about 1-2 weeks) compared to a physical bank account (from 1-3 months) depending on the bank you choose to open an account.
3. What tax incentives are available for incorporating a business in Hong Kong?
Businesses incorporated in Hong Kong benefit from attractive tax incentives, including:
- 0% Withholding tax.
- 0% Capital gains tax.
- 0% corporate income tax incentive for income arising outside Hong Kong 0%;
- 0% Value Added Tax (VAT).
4. What types of business entities are available for Hong Kong companies to register for Google Ads, Google Admob?
You can choose from the following entity types when incorporating in Hong Kong:
- Private limited liability company.
- Private company.
- Partnership.
- Foreign company office.
To better understand the types of companies in Hong Kong, please refer to the following article: Types of companies in Hong Kong.
For companies in the field of games and advertising, it is necessary to register for Google Ads and Google Admob. The suitable type to establish a company in Hong Kong is Private Limited Company.
5. Do I need to fly to Hong Kong to set up a company for Google Ads and Google AdMob?
No, you do not need to travel to Hong Kong because GLA will handle 100% of the process, from document preparation to company registration and bank account setup.
Highlights- Companies running Google Ads & Google AdMob in Hong Kong enjoy 0% VAT incentives.
- Opening a company account with digital bank is an ideal choice due to fast account setup, multi-currency payments, no minimum balance, and low to no maintenance fees.
- GLA can help businesses optimize costs and ensure legal compliance.
- If you are still don't know which country to open your company, read our article here: Set up a company in Hong Kong or Singapore?
This article was published by GLA on 01/07/2021. Copyright and accompanying content are intellectual property of GLA. All rights reserved.
The guidance and content are for general information only and are not intended to provide specific guidance and advice on accounting, tax, legal or other professional advice. Readers should consult professional advisors on specific issues.
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