Thinking about starting or expanding your business in Hong Kong as a Russian entrepreneur? With geopolitical tensions, shifting regulations, and banking troubles making headlines, it’s natural to wonder if Hong Kong is still open for Russian business. We compare the technical aspects of incorporating a company in both territories to show why Hong Kong should be the base of your next venture.
Russians Are Not Restricted from Getting Entrepreneur Visas to Hong Kong
Good news first: Russians face no nationality-based restrictions when it comes to opening or registering a company in Hong Kong. The city takes its reputation as the world’s most free trading hub very seriously, and is open to all nationalities, including Russians. Moreover, you don’t need to live in Hong Kong to establish your business, and there are no special hurdles for Russians applying for entrepreneur or investment visas. All that is really needed is a solid business plan and a realistic investment proposal.
Benefits
1 – Incorporating in Hong Kong Is Highly Time and Cost Efficient
Setting up a company in Hong Kong is a breeze compared to Russia. Hong Kong’s incorporation process is streamlined, and can be completed online as quickly as 2 business days, with digital procedures available to even remote applicants. In contrast, Russia’s process is more bureaucratic, requiring notarized documents, multiple copies, and longer waiting times, often needing up to 6 weeks to process the paperwork.
Incorporating in Russia costs only RUB 4,000 (US$50) compared to Hong Kong’s average of HK$ 3,800 (US$481). However, minimum capital requirements in Hong Kong are almost negligible, as low as HK$1, while you would need a minimum of RUB 10,000 (about USD 130) to start, with half of it paid within the first year to start a business in Russia, making Hong Kong the clear winner in cost efficiency.
2 – Hong Kong Has a Stable Business Environment with some of the Lowest Taxes in the World
Hong Kong is famous for its business-friendly climate that enables businesses to retain much of their profits. The profits tax regime is a two-tiered system that taxes 8.25% on the first HK$2 million and 16.5% on any amount over the $2 million, with no additional capital gains tax, and no tax on income sourced outside of Hong Kong. Compare that to Russia’s 20% profits tax rate, plus capital gains tax, and you’ll see why so many entrepreneurs look to Hong Kong as a low-tax haven.
The regulatory environment is conducive to business thanks to its stability, transparency, and strong shareholder protections under its common law system inherited from its British colonial days, letting you spend more time growing your business rather than navigating bureaucratic red tape.
3 – Unlimited Shareholders
While Russia limits the number of shareholders in a company to 50 individuals in a limited company, Hong Kong has no limits on how many shareholders one limited company can have. While this may not matter as much for small businesses, larger corporations may find the constraint impeding their growth.
Challenges
1- Opening a Hong Kong Bank Account
Here’s where things get tricky. While Russians can register companies in Hong Kong without issue, opening a business bank account is another issue entirely. Banks in Hong Kong are increasingly cautious about secondary sanctions and must comply with strict international anti-money laundering rules. Meaning that, as of the time of writing, if your business has any ties to Russia, particularly if it receives money from Russia or deals with entities based out of Russia, expect Hong Kong banks to refuse your application.
However, if your business has no connections to Russia and you’re operating internationally, opening a bank account is much more straightforward. The key to a successful vetting process is transparency and presenting a clear, compliant business model to the banks.
2 – Redomiciliation Procedures
Moving your Russian company is technically possible but there is a catch: Hong Kong banks will require full disclosure of the ultimate beneficial owners, and as mentioned previously you may have to cut ties with any Russian-based affiliates to continue. This level of transparency can complicate banking relationships, and can often make the moving process prohibitively difficult.
| Feature | Hong Kong | Russia |
| Incorporation Speed | 1 – 2 business days | Approx. 6 weeks |
| Minimum Capital | HKD 1 (US$ 0.78) | RUB 10,000 (US$ 130) |
| Profits tax | 8.25% on the first HK$2 million, 16.5% on (no capital gains tax) |
20% (capital gains tax applies) |
| Shareholder Limits | Flexible (no strict limits) | Max 50 for LLCs |
| Banking for Russians | Challenging if tied to Russia | Standard, but with more bureaucracy |
Conclusion
Hong Kong remains one of the most attractive places for Russian entrepreneurs to start or expand their businesses, thanks to its open policies, low taxes, and efficient incorporation process. The biggest hurdle that remains is banking, especially if your business has any links to Russia. If you’re ready to play by the rules, keep your operations international, and embrace transparency, Hong Kong offers a world-class launchpad for your next venture. If you’re ready to take the leap, we’re here to help you start your Hong Kong business.
