Hong Kong Launches New Company Re-Domiciliation Regime to Attract Global Enterprises

HONG KONG — 4 June 2025 — In a strategic move to solidify its status as a leading global financial hub, Hong Kong has officially launched a new company re-domiciliation regime, enabling non-Hong Kong-incorporated companies to relocate their registration to the city while preserving their legal identity and operational continuity.

The regime, which came into effect on 23 May 2025, allows eligible overseas companies to seamlessly re-domicile to Hong Kong without the need for liquidation or re-incorporation. This regulatory innovation is designed to enhance the city’s appeal as a long-term base for international business, especially for multinational enterprises (MNEs) seeking stability, efficiency, and access to Asia’s dynamic markets.

Streamlined Transition and Legal Continuity
At the heart of the new framework is its emphasis on continuity: companies undergoing re-domiciliation retain their original legal identity, enabling uninterrupted business operations and contractual obligations during and after the transition. This minimizes operational risks and provides reassurance to stakeholders, including employees, partners, and investors.

To qualify for the process, companies must demonstrate:

Sound corporate governance practices,
Financial solvency and ongoing business viability, and
Adequate protections for shareholders and creditors.
This ensures that only well-managed and financially stable companies benefit from the regime, maintaining the integrity of Hong Kong’s corporate environment.

Tax Clarity and Competitive Advantage
In an effort to reduce tax-related friction and prevent double taxation, the Hong Kong Government will offer unilateral tax credits for foreign profits that are subsequently taxed in Hong Kong after re-domiciliation. This fiscal clarity aligns with global best practices and further supports Hong Kong’s reputation as a low-tax, business-friendly jurisdiction.

Part of a Broader Financial Strategy
The re-domiciliation regime is a cornerstone of Hong Kong’s broader strategy to reinforce its position as an international financial centre. By lowering entry barriers for foreign companies and offering a more flexible corporate regulatory landscape, Hong Kong aims to attract firms seeking a long-term foothold in Asia’s evolving economic landscape.

“This is a timely and forward-looking initiative,” said a spokesperson for Hong Kong’s Financial Services and the Treasury Bureau. “It underscores Hong Kong’s commitment to maintaining a world-class business environment that is open, reliable, and competitive.”

Looking Ahead
As geopolitical and regulatory shifts continue to shape global business decisions, Hong Kong’s new regime provides a compelling option for firms considering relocation or expansion in the Asia-Pacific region. The government is expected to roll out additional support measures in the coming months, including guidance for companies navigating the re-domiciliation process.

By offering legal certainty, operational flexibility, and financial incentives, Hong Kong is sending a clear message: the city remains open for business — and ready for the future.