Hong Kong vs Japan

You register a private company limited by shares with the Companies Registry and obtain the Business Registration Certificate from the Inland Revenue Department through the one-stop service. The company gets a Certificate of Incorporation and a business registration number; there is no minimum share capital.

Foreigners commonly set up a Kabushiki Kaisha (KK) or the simpler Godo Kaisha (GK). Formation involves preparing articles (notarised for a KK), depositing capital and registering with the Legal Affairs Bureau, followed by tax and social-insurance filings.

For a personal account you need a valid passport or HKID, proof of address and, for non-residents, income and banking references. A company account requires the Certificate of Incorporation, Business Registration Certificate, Articles of Association and identity/address checks on every director and beneficial owner. Hong Kong has no foreign-exchange controls, but non-residents should expect enhanced due diligence (rules tightened in 2026). The HKMA regulates banks and the Deposit Protection Scheme covers eligible deposits.

Japan's banking mixes megabanks, regional banks and Japan Post Bank, and cash is still widely used. Foreigners can open accounts, usually needing a residence card, a Japanese address and often a phone number; some banks require a few months of residence.

Hong Kong is one of the world's freest economies for foreign investment, promoted by InvestHK. There is no foreign-investment screening, no exchange controls, near-total foreign ownership, and a simple low-tax system. Capital and profits move completely freely, making it a leading base for regional holding and trading companies.

Japan promotes inward investment through JETRO, with generally free capital movement. Investments in designated sensitive sectors need prior notification under the Foreign Exchange and Foreign Trade Act (FEFTA); incentives include subsidies, special zones and support for R&D and regional projects.

Hong Kong has a simple, low, territorial tax system: only Hong Kong-sourced income is taxed. Individuals pay salaries tax (with a standard-rate cap), there is no VAT, no capital gains tax and no tax on foreign income; the authority is the Inland Revenue Department.

Japan levies national income tax (National Tax Agency) plus local inhabitant tax, and a consumption tax on most goods and services. Residents are taxed on worldwide income, with distinct rules for non-permanent residents.

Professionals usually enter under the General Employment Policy (GEP) with a job offer sponsored by a Hong Kong employer; talent schemes such as the Top Talent Pass Scheme (TTPS) allow high earners and graduates of top universities to come without a prior job. You apply to the Immigration Department.

Foreigners work in Japan on a status of residence matching the job — most commonly 'Engineer/Specialist in Humanities/International Services'. You usually need a Certificate of Eligibility (CoE) obtained by the employer before applying for the visa. The Immigration Services Agency oversees the system.

Hong Kong employment under the Employment Ordinance sets a statutory minimum wage, paid annual leave rising with service, rest days, and — for those on a 'continuous contract' — sickness, holidays, and long-service or severance payments. MPF pension contributions are mandatory, and the Labour Tribunal resolves disputes.

Japanese employment is governed by the Labour Standards Act: prefectural minimum wages, capped overtime (via a '36 Agreement'), and paid annual leave from 10 days after six months. Dismissal is difficult and must be objectively reasonable; workplaces with 10+ staff need written work rules. The Labour Standards Inspection Office enforces the law.

Hong Kong is a free port: there is no customs tariff or general import duty, and no VAT or GST. You lodge an import or export declaration with Customs and Excise (within 14 days, via the electronic trading services) and pay a small declaration charge. Excise duty applies only to liquor, tobacco, hydrocarbon oil and methyl alcohol; some goods need a licence.

Japanese imports and exports clear through Japan Customs via the NACCS electronic system. You classify goods by HS code to find customs duty, pay consumption tax (10%) on imports, and check whether METI licences apply under the Foreign Exchange and Foreign Trade Act. Advance rulings give classification certainty; disputes go through Customs.

Hong Kong trademarks are registered with the Trade Marks Registry of the Intellectual Property Department (IPD). You search the register, file under Nice classes, and after examination the mark publishes for a three-month opposition period before registration. A Hong Kong trademark lasts 10 years and is renewable; China's Madrid membership does not extend to Hong Kong, so file separately.

Japanese trademarks are registered with the Japan Patent Office (JPO). You search the register, file an application classifying goods/services under Nice, and the JPO substantively examines both absolute and relative grounds. After you pay the registration fee the mark registers, with a two-month post-registration opposition window. A Japanese trademark lasts 10 years and is renewable.