Why French Entrepreneurs Choose Company Registration in Hong Kong to Beat France’s Tax Rules

Why Company Registration in Hong Kong Is a Game-Changer for French Remote Entrepreneurs

Expanding a business internationally comes with its fair share of complexities – from managing cross-border clients to navigating tax obligations back home. For French entrepreneurs abroad, one recurring challenge stands out : how to scale globally without being caught in France’s intricate tax system.

This is precisely why company registration in Hong Kong has become a strategic advantage. With its low-tax regime, zero VAT, and streamlined incorporation process, Hong Kong offers a compelling solution. Choosing an HK registered company through a trusted corporate service provider like AsiaBC gives overseas professionals the flexibility, compliance, and seamless access to fast-growing international markets.

Hong Kong is more than just a scenic skyline – it’s your launchpad for global expansion.

• How Hong Kong’s Tax Setup Compares to France
• France’s Tax Rules French Entrepreneurs Miss
• Why French Founders Choose HK for Smarter Tax Setup

How Hong Kong’s Tax Setup Compares to France

Hong Kong remains one of the most business-friendly jurisdictions for international founders, especially for French entrepreneurs, freelancers, and digital nomads scaling their ventures abroad. Whether you’re managing global operations remotely or serving clients across Europe, Hong Kong offers distinct advantages that support cross-border growth.

• Corporate tax rates – Hong Kong taxes local profits at 8.25% on the first HK$2 million, and 16.5% thereafter — significantly lower than France’s flat 25% rate.
• Offshore profits – Income earned outside Hong Kong may qualify for an Offshore Claim, allowing your company to legally pay 0% tax on overseas earnings.
• VAT and capital gains – Hong Kong imposes no VAT or capital gains tax, while France applies 20% VAT and up to 30% capital gains tax.
• Dividend tax – Hong Kong has no withholding tax, whereas France levies 12.8% income tax plus 17.2% social charges on dividends.
• Social contributions – Employer and employee contributions are minimal in Hong Kong, but high in France.
• Setup speed – Company registration in Hong Kong can be completed remotely, often within 48 hours, with access to multi-currency business accounts for seamless global transactions.

France’s Tax Rules French Entrepreneurs Miss

Setting up a company in Hong Kong offers clear tax advantages, but French nationals should be aware of how France’s tax laws might still apply, especially if they still maintain tax ties with their home country.

France considers you a tax resident if you spend more than 183 days a year in the country or if your main professional or financial interests remain there. If you meet either condition, your global income, including profits from overseas companies, may be subject to French taxation.

One key regulation that directly affects Hong Kong-based businesses is the Controlled Foreign Company (CFC) rule. It targets French tax residents who own or control companies in low-tax jurisdictions and applies when :

• You own a majority stake in a Hong Kong company
• Hong Kong’s corporate tax rate (16.5%) is lower than France’s (25%)
• The business could reasonably operate from France, such as serving European clients remotely

If these criteria are met, French authorities may treat your company’s profits as personal income, taxing them at progressive rates up to 45%, plus social charges of 17.2%.

Beyond the CFC rule, here are other tax implications to keep in mind :

• Dividends from your Hong Kong company may be taxed in France, though bilateral tax treaties can help reduce the rate
• Salaries or management fees are fully taxable under French law and subject to social contributions

For French expats who no longer qualify as tax residents, these rules typically don’t apply – making Hong Kong a more viable and compliant option for remote business growth.

Why French Founders Choose HK for Smarter Tax Setup

Hong Kong presents a strategic opportunity for French entrepreneurs to run a global venture without the constraints of France’s complex tax system, provided you’re no longer classified as a French tax resident.

With company registration in Hong Kong, you gain access to a tax-efficient structure, international banking, and the flexibility to operate across borders – wherever you are in the world. Professional corporate service providers like AsiaBC simplify the process with practical expertise in HK register company setup, tailored support for remote founders, and strong banking partnerships that enable seamless global transactions.

Whether you’re a French or EU-based founder, freelancer, or digital nomad, Hong Kong offers a compliant and scalable path to international growth – built for the way modern businesses operate.