Exploring the Benefits of Redomiciliation to Hong Kong

On 23 May 2025, the Companies (Amendment) (No. 2) Ordinance came into effect in Hong Kong, introducing a long-awaited redomiciliation regime.  

This change creates a valuable opportunity for offshore companies to relocate their place of incorporation and benefit from Hong Kong’s globally respected business environment. 

As companies face increasing regulatory scrutiny, geopolitical uncertainty, and the need to access growth markets, many are now exploring whether to redomicile to Hong Kong. In this article, Yvonne Lee, Associate Director – Corporate Services at Equiom in Hong Kong, outlines the key advantages, the potential challenges, and why now is the time to consider this strategic move. 

Why consider redomiciliation to Hong Kong? 

1. Strategic location and market access 

Hong Kong remains one of the world’s most important gateways to Asia. Redomiciling here gives businesses direct access to mainland China, the world’s second-largest economy, as well as broader Asian markets. For companies seeking regional expansion, Hong Kong provides an established base with global connectivity. 

2. Business-friendly environment 

Hong Kong’s competitive tax regime is a major draw. The corporate tax rate is capped at 16.5%, with no capital gains tax and no withholding tax on dividends. Combined with a well-established regulatory framework and efficient company registration system, the city continues to attract multinational groups and entrepreneurial businesses alike. 

3. Reputation and credibility 

Choosing to redomicile to Hong Kong signals credibility. The jurisdiction is internationally recognised for its common law legal system, transparent regulation, and strong protection of intellectual property rights. This reputation can increase investor confidence and open doors to partnerships and financing. 

4. Flexibility in corporate structure 

The new ordinance provides greater flexibility for corporate governance and structuring. Companies can adapt their internal frameworks, from board composition to shareholding arrangements, in ways that enhance decision-making, efficiency, and long-term succession planning. 

5. Access to capital 

Hong Kong is a leading global financial centre. Redomiciled companies can leverage deep pools of capital through public listings, private equity, venture capital, and family office investment. The ability to raise funds in a trusted, internationally connected market is a compelling reason for considering redomiciliation to Hong Kong. 

Potential drawbacks to consider 

While the advantages are clear, companies should also be aware of the challenges: 

• Compliance and regulatory costs: Transitioning into Hong Kong’s regulatory system involves advisory, legal, and filing expenses. 
• Cultural and operational adjustments: Adapting to local practices may require additional training or resources. 
• Tax implications: While Hong Kong’s tax regime is favourable, businesses must review obligations in their current jurisdiction to avoid unintended liabilities. 

Conclusion: A strategic move for future growth 

The introduction of Hong Kong’s new redomiciliation regime represents a milestone for the jurisdiction and an attractive option for offshore companies seeking stability, credibility, and access to Asia’s growth. 

By relocating incorporation to Hong Kong, businesses can align themselves with a jurisdiction that balances tax efficiency, regulatory transparency, and international reputation. 

At Equiom, we understand the complexities of cross-border structuring and relocation. With experienced professionals on the ground in Hong Kong and across our global network, we provide the insight, guidance, and hands-on support needed to ensure a seamless transition. 

If you are considering whether to redomicile to Hong Kong, our team would be delighted to discuss your options. Contact our Hong Kong team today to find out how redomiciliation could support your company’s long-term success. 

This article has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. This article cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained within this article without obtaining specific professional advice. Please contact Equiom Group to discuss these matters in the context of your particular circumstance. Equiom Group, its partners, employees, and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this article or for any decision based on it.