- Osome Blog HK
- Why Portuguese Businesses Are Incorporating in Hong Kong
Is Hong Kong Right for Portuguese Founders? Here's How to Decide
- Modified: 24 July 2026
- 7 min read
- Company Registration, Foreigner's Guide
Ruth Dsouza
Author
Ruth Dsouza Prabhu is a content developer passionate about shaping ideas into compelling narratives. Drawing on her experience in marketing communications and lifestyle writing, she brings clarity to complex business topics for entrepreneurs. Her work spans strategy, storytelling, and thought leadership, offering readers content that is both credible and impactful.
Portugal's newest generation of founders is building for the world from day one, and Hong Kong is increasingly part of that plan. As the country's economy grows more international, Hong Kong's open economy and deep regional connectivity make it a natural gateway for founders building beyond Europe.
That interest isn't new. Portuguese trading posts spread across Asia from the sixteenth century, with Macau at their centre. When Hong Kong opened as a British port, many Portuguese and Macanese families relocated there. They became the territory's second-largest Western community, led by figures like J.P. Braga. Portuguese founders today aren't walking into an unfamiliar market.
Key Takeaways
- Portugal's startup economy is genuinely scaling internationally, and Hong Kong offers founders a market they already have three centuries of documented ties to, not a cold start.
- Hong Kong's edge is trade and ecommerce and low tax. Artificial intelligence (AI) and software as a service (SaaS) founders chasing venture capital are usually better served by looking at Singapore alongside it.
- A Hong Kong entity costs roughly HK$ 17,450 (approximately €1,950)in year one with Osome, with tax, mandatory audit, and double taxation (Portugal has had a treaty with Hong Kong since 2012) already accounted for.
Worth knowing upfront: Hong Kong incorporation is 100% digital, filed remotely via the Companies Registry's e-Registry portal with no need to visit in person. The one common exception is opening a business bank account, which some banks still prefer face-to-face.
Why Are More Portuguese Businesses Expanding Internationally?
Portugal's startup scene has quietly matured into one of Europe's stronger ecosystems:
- 5,091 active startups in 2025 (Startup Portugal / Informa D&B), up 8% on 2024, hitting the national target three years early
- More than half already report meaningful international operations
- Homegrown unicorns include Sword Health, OutSystems, Feedzai, and Tekever
- Portugal claimed 12 spots in the Financial Times' 2026 ranking of Europe's leading start-up hubs, with Lisbon accounting for seven
This isn't only a Portuguese story. Across the European Union (EU), founders are increasingly building companies designed to scale beyond their home market from day one, spanning ecommerce, trade, SaaS, freelance work, content, and, increasingly, AI. Estonia, for instance, already ranks among Europe's highest venture capital spenders per capita, a sign this outward-looking pattern reaches well beyond the continent's largest markets.
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Why Is Asia the Next Growth Market for Portuguese Businesses?
For a growing number of European founders, the next stage of growth increasingly means looking towards Asia rather than deeper into Europe, driven by fast-growing consumer markets, accelerating cross-border digital trade, and rapid adoption of AI-powered tools reshaping how business gets done.
Some Portuguese business types are especially well placed to make the move, though Hong Kong plays to some strengths more than others. It's built first and foremost for trade:
Business | Opportunity in Asia |
|---|---|
| AI companies | Enterprise partnerships and mainland manufacturing or deployment ties, rather than fundraising, which tends to point founders towards Singapore instead |
| SaaS companies | Regional expansion into fast-growing Asian markets |
| Ecommerce and trading brands | Hong Kong's core strength: cross-border logistics, mainland supply chains, and access to Asian consumer bases |
| Content creators | Agencies, licensing deals, and digital partnerships across Asia |
| Freelancers and consultants | International clients and simpler cross-border payments |
For businesses with existing ties to the region through Macau and Hong Kong's shared history, the question is less whether to look at Asia and more where to start.
Why Incorporate in Hong Kong?
The numbers make the case for Hong Kong specifically:
- Hong Kong regained the top global spot for initial public offering (IPO) fundraising in Q1 2026 alone, raising HK$ 109.9 billion through 40 new listings
- 413 new or expanded overseas and mainland companies set up in Hong Kong in H1 2026, expected to bring over HK$ 53 billion (US$ 6.8 billion) in foreign direct investment and create 8,600+ jobs, direct investment up 36% year-on-year.
- Hong Kong's exports are forecast to grow 8 to 9% in 2026, on strong demand for AI-related products
The Tax Benefits for Portuguese Businesses Incorporating in Hong Kong
For most Portuguese founders, tax is the number that changes the math on going international:
Tax Metric | Portugal | Hong Kong | Singapore | The UAE |
|---|---|---|---|---|
| Standard corporate tax | 19%, up to ~30% with surtaxes on high profits | 8.25% on the first HK$ 2 m, 16.5% above | 17% flat, heavily reduced for startups | 9% above AED 375,000, 0% for qualifying free zone companies |
| Taxation basis | Worldwide income | Territorial: 0% on genuinely offshore profits | Modified territorial | Territorial for qualifying for free zone income |
| Capital gains tax | Taxed as ordinary income | 0% | 0% | 0% for qualifying income |
| Dividend withholding | Up to 25% | 0% | 0% | 0% |
| VAT / GST | 23% | None | 9% | 5% |
| Double tax treaty with Portugal | — | Yes, since 2012 | Yes, since 1999 | Yes, since 2011 |
Hong Kong's territorial system is the headline difference: profits genuinely earned outside Hong Kong can, in some cases, qualify for a 0% offshore exemption, though this requires a formal claim to the Inland Revenue Department (IRD) and documented evidence, not just intent. For Portuguese founders specifically, there's a useful piece of history repeating itself: Hong Kong and Portugal signed a double taxation treaty in 2011, in force since 2012, meaning income already taxed in one jurisdiction generally isn't taxed again in the other. Worth confirming the details against your own structure with an accountant, but it's one less thing to worry about than founders from countries without a treaty in place.
One thing worth planning for from day one: every active Hong Kong company, regardless of size, files an annual audit. It's mandatory, not optional, and far easier to budget for upfront than to discover midway through year one.
Beyond the numbers, a handful of practical advantages tend to matter most to founders weighing up the move:
Benefit | Why It Matters |
|---|---|
| Gateway to mainland China and Asia-Pacific | Direct access to the region's largest and fastest-growing markets |
| Established international banking ecosystem | Cross-border payments and financing become simpler with a local entity in place |
| Strong legal framework and reputation | Greater confidence for investors and partners evaluating your structure |
| 100% digital, no relocation required | Incorporation is filed remotely; founders can operate without ever moving to Hong Kong |
For most businesses, incorporation is rarely the first step of international expansion. It tends to arrive once growth creates a genuine need for a local legal presence: a growing base of Asian customers, a new relationship with a regional distributor, or the first hire made outside Europe.
None of this needs to happen overnight. Many founders incorporate well after their first Asian customer arrives, once the case for a local entity becomes practical rather than theoretical.
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How Can Portuguese Businesses Incorporate in Hong Kong?
Setting up a company in Hong Kong is a relatively straightforward process, and it does not require Portuguese founders to relocate. The core steps are:
- Choose a unique company name
- Appoint at least one director and between one and fifty shareholders (no residency requirement for either)
- Appoint a Hong Kong-resident company secretary
- Set share capital (no minimum required) and provide a registered address in Hong Kong
- File the company officer details with the Companies Registry
- Receive a Business Registration Certificate (BRC), issued alongside the Certificate of Incorporation
Most of this can be completed remotely, though founders typically do need to be physically present at some point to open a business bank account. Once documents are in order, incorporation is usually completed within a matter of days, provided all due diligence and paperwork are in order; this can extend if information is missing or requires clarification.
Two steps trip up first-time founders most: a Hong Kong-resident company secretary and a registered local address, both legal requirements. Company registration services like Osome's cover both in one package, alongside other services like opening a digital business account.
What Does It Cost to Incorporate and Run a Business in Hong Kong?
Costs vary depending on whether you handle each requirement separately or bundle them with one provider. Here's what that looks like in practice:
Sourced separately (approx.) | With Osome (approx.) | |
|---|---|---|
| Government filing + BRC | HK$ 3,895 (€434) | Included |
| Registered address | HK$ 2,000–5,000/yr (€223–558) | Included |
| Company secretary | HK$ 3,000–8,000/yr (€335–892) | Included |
| Incorporation, bundled | — | HK$ 8,950/yr (€998) |
| Accounting, incl. mandatory audit | HK$ 8,000–30,000/yr (€892–3,345) | From HK$ 8,500/yr (€948) |
| Total, year one | HK$ 16,895–46,895 (€1,885–5,230) | From HK$ 17,450 (€1,947) |
Assembling these separately puts year-one costs at roughly HK$ 16,895 to HK$ 46,895 (approximately €1,885 to €5,230), depending on providers and accounting complexity. With Osome, incorporation, the registered address and company secretary come bundled into the Comprehensive package, and accounting, including the mandatory audit and Profits Tax Return filing, starts from HK$ 8,500 a year. Together, that's a real first-year figure of roughly HK$ 17,450, rather than a number you'd have to piece together from five separate quotes.
This is the kind of decision Osome specialists work through with founders across Singapore, Hong Kong, the UK, and the UAE every day. The conversation isn't a sales script; it's someone looking at your specific situation, industry, and revenue stage, and telling you exactly what setup fits, what it costs in year one, and what to plan for before it becomes urgent. Speak to an Osome expert.
Ruth Dsouza Prabhu is a content developer passionate about shaping ideas into compelling narratives. Drawing on her experience in marketing communications and lifestyle writing, she brings clarity to complex business topics for entrepreneurs. Her work spans strategy, storytelling, and thought leadership, offering readers content that is both credible and impactful.
