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Moving to Hong Kong

All you need to know about moving to Asia’s World City.

Our guides for Norwegian companies and families: why Hong Kong, setting up an office, tax, visas, trading between Norway and Hong Kong, and the Norwegian institutions in the city.

Please note that the following advice is collected and given with good intentions, and that the Norwegian Chamber of Commerce Hong Kong will not accept any liability from anyone that follows the advice without confirming facts and requirements with the appropriate authorities.

01 / Setting up in Hong Kong

Why Hong Kong?

If you are considering setting up, relocating or expanding your business in Asia, why should you choose Hong Kong?

Hong Kong has a long history of international business, having been a British crown colony from 1842 to 1997. In 1984 it was decided that it was to return to Chinese rule when Great Britain’s lease on the New Territories district (a northern district of Hong Kong) expired in 1997. To avoid the colony being split up or becoming immediately subject to communist rule, the British and Chinese governments negotiated a special status for Hong Kong under the principle of “one country, two systems”. A new constitution, Hong Kong’s Basic Law, was ratified in 1990, stating that Hong Kong’s capitalistic system of business and government shall be retained for 50 years (until 2047).

In the period from 1984 to 1997 there was great uncertainty whether China would honor this deal and a large number of Hong Kong citizens (and some companies) moved to Canada, the US, Australia and other Asian cities such as Singapore. China however honored the arrangement, and within a few years many people and businesses returned to Hong Kong. With the spectacular rise of opportunities offered in China today, Hong Kong is a thriving international city with a unique position that allows it to benefit as a part of China but with its own judiciary, financial, monetary and educational system. In this way, Hong Kong embodies its slogan as being “Asia’s World City”.

When looking at where to set up your business or professional life, consider these very important factors in Hong Kong.

Economy and finance
  • A leading financial system, currently rated as the 3rd largest financial center in the world.
  • World’s freest economy 16 years running (annual index of economic freedom, The Heritage Foundation and Wall Street Journal).
  • 69 of the world’s largest banks are represented in Hong Kong.
  • World’s 6th largest foreign exchange center, with the free exchange of capital and currencies.
  • Largest number of IPOs in the world.
  • World’s 4th busiest airport.
  • One of the world’s largest container terminals.
Independent and strong legal system
  • Hong Kong’s legal system, based on British Common Law, is a bastion for rule of law for individuals and corporations.
  • All business contracts as well as Intellectual Property rights are covered by internationally accepted law practices.
  • The court of final appeal has at least one visiting judge from the UK supreme court, the High Court of Australia or other supreme courts under the Common Law.
  • All major law firms from the US and Europe have an office in Hong Kong.
  • Hong Kong is an important global and regional arbitration center.
  • Strong stance against corruption: Hong Kong’s Independent Commission Against Corruption (the “ICAC”) is a unique success story and is used as an example for other countries. Transparency International’s corruption index rated Hong Kong 12th globally, right behind Norway.
Freedom of press and academia
  • Freedom of speech and press is protected by Hong Kong’s basic law and no censorship is enacted. More than 40 newspapers, 700 magazines and 130 media organisations including all the leading international media are represented in Hong Kong.
  • Three of Hong Kong’s universities are rated among the top 50 in the world and among the top 4 in Asia: Hong Kong University, City University of Hong Kong, and Hong Kong University of Science and Technology.
  • More than 50 international schools (primary and secondary) exist to support an active expatriate community. Many of these schools have received international accolades for the high quality of their education.
Gateway to China and center of expertise on China

Hong Kong’s strong economic position is of course, as it has always been, largely due to its close relations with China.

  • Over 40% of the investments in China made since Deng Xiaoping introduced China’s “Open Door” policy have originated in Hong Kong.
  • Half of the ~120,000 factories in the Pearl River Delta area are owned by Hong Kong interests.
  • The free trade agreement CEPA between Hong Kong and China allows for free trade flows of 1500 product categories and 42 sectors of services.
  • Hong Kong is the first market outside mainland China that has been allowed to trade in Chinese currency (RMB) and where businesses can have capital in RMB.
  • Hong Kong is the primary stepping stone market for Chinese companies that want to expand internationally.

In short, Hong Kong’s mission has been to be the leader in international transparency and business practices, access to the myriad of opportunities in China and Asia, and a vibrant environment for the expatriate community.

02 / Setting up in Hong Kong

You and your family

Once the decision to relocate to Hong Kong has been made, you face the challenge of leaving your known everyday life behind and reestablishing yourself and your family in a new, exciting, but different place.

Hong Kong is a truly international city, so the vast majority of Norwegians in Hong Kong find the transition easy and, thanks to the international community, find great value in being able to choose exactly how exotic you want your everyday life to be.

Having someone experienced in helping Scandinavian families and companies to relocate to Hong Kong will give you the easiest transfer and avoid the potential pitfalls in the process. Please contact the following of our members to see what assistance they can provide during your relocation:

Visa

Norwegians do not require a visa to enter Hong Kong for a duration of up to 3 months, but employment and study are prohibited. In order to take up employment in Hong Kong, an employment visa or an investment visa is required. Visa applications may be submitted at the Chinese Embassy in Oslo, by mail directly to the Hong Kong Immigration Department or through a sponsor in Hong Kong. The processing time takes about 4 to 6 weeks.

Spouses and unmarried children under 21 may accompany the visa holder and they are free to take up employment or education in Hong Kong. You are normally not allowed to obtain an employment visa while staying in Hong Kong as a visitor. So, make sure your employment visa as well as your family’s dependent visas are applied for and granted before you arrive in Hong Kong.

Chinese Embassy in Oslo · Hong Kong Immigration Department

Hong Kong ID card

The resident Hong Kong ID card, or HKID, is a credit-card sized ID card you will be issued 4 to 6 weeks after your work visa is approved. This is the ID you will need for all public offices, banks and other services. This ID card can also be used at Hong Kong ports of entry instead of your Norwegian passport when entering and leaving Hong Kong to save time at immigration checkpoints (though you may still use your Norwegian passport instead).

Hong Kong’s economy is based on a constant flow of international professionals and commerce, and this is reflected in the ease with which fundamental services can be set up by people and businesses new to the city. Most institutions such as public offices, banks, real estate agents, telecom and internet providers and hospitals will accept your Norwegian passport (with an approved Hong Kong work visa), enabling you to get all necessary services and contracts in place without the wait for a local HKID number.

Schools

This is maybe the most important item you need to have sorted BEFORE you arrive in Hong Kong, but it is often overlooked by Norwegians as this is a non-issue in Norway.

Securing a school placement for your children is unfortunately not a straightforward task in Hong Kong and is often considered to be the hardest challenge when relocating. Most expatriates will need to send their kids to a private international school, as local public schools require knowledge of Cantonese before they accept a pupil. Bear in mind that many international schools require prior knowledge of English before accepting students. Primary school placements for children aged 6 to 10 years old are especially tight, so finding a school can be a challenge if you leave it too late.

The choice of school also has further implications. First off, fees for private schools can be substantial and an expense not in your current family budget. Knowing this monthly expense is important to include when planning your finances for living in Hong Kong, or when discussing the relocation with your employer. Furthermore, some schools only accept applications from families that live within their assigned school district (or “catchment areas”), an area around the school’s location that can vary significantly in size. Only with a proof of address within the school district are you eligible to apply. So the school you choose also has a bearing on where you need to look for an apartment.

This process may take some time, but once enrolled, your children will enjoy a rich education on a very high international level. This high level of education, together with the rich exposure to children from globally diverse backgrounds, is one of the reasons why many expatriates choose Hong Kong over other Asian cities.

Housing

Hong Kong is a city of skyscrapers and it is quite possible your new home will be in a high-rise tower. Coming from Norway, you should expect this as a change in living environment and part of the overall Hong Kong experience.

Normal tenancy agreements in Hong Kong run with a fixed rent over 2 years, usually with an initial period of 14 months during which you will lose the 2 to 3 months deposit if you terminate the contract early. After the 14 months “break-lease” period, either party can terminate the contract, typically with 2 months’ notice.

The cost of housing, especially in Hong Kong’s prime districts, is expensive, and finding the right flat and committing to a 2-year contract may seem a daunting task on top of the many other arrangements needed. Hong Kong has an extensive offering of serviced apartments that are fully furnished and designed for temporary living (typically 1 to 2 months) until a more permanent apartment is secured. This is a solution many expatriates choose, and it enables them to get to know the city and the different areas before they decide where to live.

Bank account

Getting a bank account when arriving in Hong Kong is very simple. Most banks will open an account for you using your Norwegian passport (with approved Hong Kong work visa) as identification until you get your local Hong Kong ID. Most will give you an account with internet banking, a cheque book (which is still widely used in Hong Kong) and a debit card, even without having your salary credited to the same account.

If you want a local credit card you must usually have regular salary deposits to the account, or pay in and maintain a minimum balance in the account of 2 times the credit limit of the credit card.

Driving license

As a holder of a Norwegian driving license you are automatically eligible for a Hong Kong driving license. Get an approved translation of your Norwegian driving license before you leave Norway and remember to bring the original license, and you can get a Hong Kong driving license issued by the Transport Department as soon as you get your HKID.

Transport Department

Hospitals, dentists, opticians

Hong Kong has the benefit of excellent public and private hospitals. The level of healthcare in Hong Kong is on par with the best in the world: the facilities, level of care and low costs (for public hospitals) are spoken very highly of (including by Norwegians!). Hospitals in Hong Kong will commonly charge the fee for the treatment as you leave, unless it is a planned procedure. If it is a private hospital this may be a significant sum, but all hospitals in Hong Kong are recognized by Norwegian health insurers and refunds for medical costs are usually a straightforward task.

Internet, TV, cellphones

Internet and telecom services are very similar to what you will find in Norway. The biggest providers are:

  • Cable TV & Internet: PCCW, Icable, SmarTone
  • Cell phone: Vodafone, 3, CSL, SmarTone
Health facilities and gyms

A wide selection of gyms are available all over Hong Kong. In newer and larger apartment complexes you will also often find health club facilities and swimming pools available for use by the tenants.

The biggest gyms in Hong Kong are Fitness First and Pure Fitness. In addition to these there is a wide range of small and large yoga centers and specialised offerings in sports and fitness, in addition to team sports such as football, rugby, cricket and volleyball.

There are also numerous private recreational clubs offering sports facilities, restaurants and other social venues. The Hong Kong Cricket Club and Hong Kong Football Club are two of the more popular private clubs, though there are many more. All clubs, regardless of their name, tend to have multiple different sports facilities for their members to enjoy.

Outdoor activities

Hiking: despite the general impression, Hong Kong actually has very large areas of country parks and mountains, with ~60% of Hong Kong’s land dedicated to country parks. It has an extensive network of hiking trails that are easily accessible and well marked. Hiking is by no means a hobby you will need to give up when moving to Hong Kong.

Beaches: Hong Kong offers a wide range of white beaches, many of them within 30 minutes from the city center.

Water activities: with over 200 islands, Hong Kong offers many choices of water activities throughout the year. Windsurfing, diving, wakeboarding, rowing, sailing and a leisurely cruise on a junk (leisure craft) are all easily available, and you can find a club for almost all water sports.

03 / Setting up in Hong Kong

Setting up an office

The easiest way to get your new office in Hong Kong up and running is, of course, to get someone with local experience and expertise to help you out.

Specialists in enabling new business and aiding new companies setting up in Hong Kong:

General information

Every person who carries on any form of business activity in Hong Kong must register his or her business with the Inland Revenue Department within one month of commencement of business.

A Hong Kong-registered company’s “Business Registration Certificate” is required to be displayed prominently at the address where business is carried on.

Business Registration Office, Inland Revenue Department

4/F, Revenue Tower, 5 Gloucester Road, Wanchai, Hong Kong

Tel: (852) 2594 3146 · Fax: (852) 2824 1482

Inland Revenue Department

Company incorporation

The most common form of business structure in Hong Kong is the limited liability company. To incorporate a limited company, the following documents are required to be filed with the Registrar of Companies:

  • The Memorandum of Association for setting out the objectives of the company and its share capital, which must be signed by at least two subscribers;
  • The Articles of Association, which prescribe the regulations for the company’s administration and which must be signed by each subscriber of the memorandum; and
  • A Statutory Declaration of Compliance with the Companies Ordinance.

The documents lodged for the incorporation of a new company must be accompanied by a covering letter showing the proposed company name along with the presenter’s name, contact telephone number and address. For more immediate company establishment, it is straightforward in Hong Kong to purchase a shelf company, a service offered by many professional business consultants and solicitors.

A shelf company is one which has already satisfied all legal formalities connected with incorporation and is ready to commence business. The name of the company can be easily changed at a later date if required.

The Registrar of Companies, Companies Registry, 14th Floor, Queensway Government Offices, 66 Queensway, Hong Kong

Tel: (852) 2234 9933 · Fax: (852) 2596 0585

Companies Registry

Foreign companies

Straightforward registration procedures apply to a company incorporated outside Hong Kong seeking to open a branch office in Hong Kong. The following documents must be delivered to the Companies Registry for registration within one month of the establishment of the place of business:

  • A certified copy of the Charter, Statutes or Memorandum and Articles of the parent company and, if the documents are not in English, a certified translation of the documents;
  • A list of the directors and secretary of the company;
  • The name and address of one or more authorised persons resident in Hong Kong to accept the service of notices on behalf of the company;
  • The respective addresses of the principal place of business in Hong Kong and the registered office of place of incorporation;
  • A memorandum of appointment or power of attorney; and
  • A certified copy of the company’s Certificate of Incorporation and the latest audited annual accounts.

If a foreign company chooses to establish a representative office in Hong Kong under which there is no intention of carrying out legally binding business transactions, there is no need to register with the Registrar of Companies. However, a representative office is still required to obtain a Business Registration Certificate.

Sole proprietorships or partnerships

A business can be freely and legally operated as a sole proprietorship or partnership in Hong Kong. Other than the business registration requirement there are few regulations governing this form of business. A partnership generally cannot consist of more than 20 partners, with the exception of certain categories of professional partnerships, and the partners are personally liable for all of the partnership’s debts.

Partnerships are usually governed by a partnership agreement, in the absence of which the Partnership Ordinance regulates the obligations of and relationship between the partners. A limited partnership (in which the partners are liable for obligations or debts equal to their capital contribution) must be formed according to the Limited Partnership Ordinance and be registered with the Registrar of Companies.

Local agents

An overseas company may choose to appoint a Hong Kong agent to act as its representative. This form of business arrangement is common among overseas companies exploring opportunities in Hong Kong and the region.

Support for trade and industry

An extensive network of support organisations in Hong Kong offers a comprehensive range of services to assist companies from around the world to establish business ties and to carry out and expand business.

Invest Hong Kong

InvestHK was established in July 2000 for the purpose of promoting Hong Kong as a trade, investment and business hub in Asia. It provides assistance to corporations and individuals looking for direct investment opportunities in Hong Kong.

25/F, Fairmont House · Tel: (852) 3107 1000 · Fax: (852) 3107 9007 · Email: enq@investhk.gov.hk

Invest Hong Kong

Hong Kong Trade Development Council (HKTDC)

The HKTDC was set up by statute in 1966 to promote and expand Hong Kong’s external trade. As the international marketing arm for local manufacturers and traders, the HKTDC plays a vanguard role in opening new or difficult markets for Hong Kong companies.

The HKTDC also plays an important role in promoting Hong Kong as the trade fair capital of Asia by organising some of the largest trade fairs in the region.

38/F, Office Tower, Convention Plaza · Tel: (852) 1830 668 · Fax: (852) 2824 0249 · Email: hktdc@hktdc.org

HKTDC

Hong Kong Productivity Council (HKPC)

A statutory body promoting industry productivity in Hong Kong, the HKPC offers a wide range of support services and facilities to industry, from training, design, engineering, demonstration and consultancy to strategic alliances for technology transfer and joint product development with industry. It also supervises three subsidiary companies which specialise in design innovation, clothing technology demonstration and productive heat treatment services.

It is committed to helping Hong Kong manufacturers move upmarket and to facilitating the transformation of Hong Kong industry to high value-added activities. HKPC is the Hong Kong Government’s agent for all matters involving the Asian Productivity Organisation.

HKPC Building · Tel: (852) 2788 5678 · Fax: (852) 2788 5900

HKPC

Hong Kong Export Credit Insurance Corporation (HKECIC)

The ECIC is a statutory corporation formed to help Hong Kong exporters minimise risks by providing insurance coverage on goods exported and services rendered on credit, particularly for shipments not normally covered by commercial insurers. The ECIC offers credit advisory services to its policy-holders by investigating the credit worthiness of prospective buyers. When a policy-holder encounters payment problems, the ECIC also provides a risk management service and advice on possible courses of action to prevent or minimise potential loss.

The ECIC is a member of the International Union of Credit and Investment Insurers (the Berne Union) and has an international network of contacts. It has ready access to confidential and updated economic and market information on other countries, and can provide credit reports on overseas buyers.

2/F, Tower I, South Seas Centre, 75 Mody Road, Tsim Sha Tsui East, Kowloon, Hong Kong · Tel: (852) 2732 9988 · Fax: (852) 2722 6277

HKECIC

Hong Kong Science & Technology Parks (HKSTP)

HKSTP was inaugurated on May 7, 2001 following a three-way merger among the Hong Kong Industrial Estates Corporation, Hong Kong Industrial Technology Centre Corporation and the Provisional Hong Kong Science Park Company Limited.

This Corporation is a government statutory body established to bring world-class technology and the most highly skilled workforce together in a purpose-built environment so as to create co-operative, clustering and synergy effects. They provide quality infrastructure and support facilities conducive to innovation and technology development.

8/F, Bio-Informatics Centre, No. 2 Science Park West Avenue, Hong Kong Science Park, Shatin, New Territories, Hong Kong · Tel: (852) 2629 1818 · Fax: (852) 2629 1833

HKSTP

Further information: Hong Kong SAR government: business information

04 / Setting up in Hong Kong

Taxation

Hong Kong-based individuals and companies enjoy one of the lowest-taxed environments in the world. The tax system is uncomplicated and comprises three direct taxes on income.

Profits tax

The profits of corporations and unincorporated businesses are taxed at a rate of 16.5% and 15% respectively. No distinction is made between public and private companies or between distributed and undistributed profits.

All profits arising in or derived from Hong Kong are taxable, excluding capital gains or dividends, nor are revenues earned offshore. At the same time, all expenses incurred in the production of chargeable profits are allowed as deductions, and allowances are given for capital expenditure on machinery and plant and the construction of industrial buildings and structures.

Salaries tax

Salaries tax is levied on income received by employees from Hong Kong-sourced employment and pensions. This includes salaries and wages, commissions, fees, cost-of-living allowances, allowances for the education of children and similar employer-paid benefits. Housing costs paid or reimbursed by an employer are not directly taxable; an amount calculated up to 10% of an employee’s assessable income is added to reflect the taxable portion of housing provided.

Salaries tax is calculated on net chargeable income (i.e. total income less personal allowances) using a sliding scale of rates between 2% and 17%, or at the standard rate of 15% of the taxpayer’s total income, whichever is lower.

Property tax

Property tax is charged to the owner of land or buildings in Hong Kong at a standard rate of 15% on actual rents received, excluding rates paid by the owner and less an allowance of 20% for repairs and maintenance. Only bona fide rental income is assessed as property tax. Where a corporation carries out business in its own premises, it is exempt from property tax, and any rental income received is instead assessed under profits tax.

Personal assessment

As a general principle, profits, salaries and property taxes are assessed separately and a person may be assessed under all three categories. In certain circumstances individuals can apply for a Personal Assessment, whereby income from all three sources is aggregated and assessed in the same manner as salaries tax.

Tax exemptions and deductions

Generally, all expenses incurred in the course of generating chargeable profits are allowed as deductions, including:

  • Interest on funds borrowed (provided the borrowings comply with stipulated conditions) and rental of buildings or land;
  • Repairs of articles, premises, plant and machinery;
  • Registration in Hong Kong of a patent or trademark;
  • Costs of purchasing a patent or trademark for use in Hong Kong, subject to conditions; and
  • Expenditure for scientific research and payments for technical education, subject to certain rules.
Depreciation allowances

Deductions are allowed for capital expenditure incurred in the construction of industrial buildings and structures for use in certain trades (including, for example, the manufacture and processing of goods; public warehousing; trade carried on in mills and factories; and farming). An initial allowance of 20% of such capital expenditure is given, with an additional 4% annually thereafter until the total expenditure is written off.

Capital expenditure on machinery and plant is eligible for an initial allowance of 60% for the year of assessment during which the expenditure is incurred, with an annual “wear and tear” allowance on the recorded value at rates ranging from 10% to 30% according to the estimated working life of the particular category of plant or machinery.

Double taxation relief

In August 2006, Hong Kong signed a comprehensive taxation agreement with Mainland China, and later also with Belgium, Thailand, Luxembourg and Vietnam. In addition, an agreement relating to airline and shipping income has been concluded with over 30 countries.

Inland Revenue Department, Revenue Tower, 5 Gloucester Road, Wanchai, Hong Kong

Tel: (852) 187 8088 · Fax: (852) 2519 9316 / 2877 1189 (Profits Tax)

Inland Revenue Department

Other taxes

Only minimal indirect taxes are levied in Hong Kong. They include property rates, stamp duty on property and stock market transactions, betting and sweepstakes tax, hotel accommodation tax, air passenger departure tax, entertainment tax and motor vehicle taxes. The Hong Kong Government also levies a directly taxed estate duty.

Further information: Hong Kong SAR government: business information

05 / Trading and business

Business in Hong Kong

Hong Kong, with its unique location at the geographical center of Asia, combined with its established place as the primary gateway to China, makes it a major hub for trading and business.

For businesses trading in Hong Kong, China and Asia, sourcing goods from China and Asia or exporting your goods or services across Asia, Hong Kong is the ideal place to have a presence.

Hong Kong’s long tradition in international trade, business law and anti-corruption practices currently rates it as the third largest financial center in the world (after New York and London). For most businesses, the open market, low taxes and attractive environment for employees make Hong Kong the preferred choice to build their gateway to the Asia market. In addition, the recently signed free trade agreement between Hong Kong and the EFTA countries means that Norwegian companies can avoid trade barriers when doing business with Hong Kong.

Your business could start out through one of the many trade shows hosted in Hong Kong, doing business directly or through a local partner. Trading and business through Hong Kong is the core interest of some of our members as well.

Useful companies that may be able to support Nordic, Hong Kong and Asia business include:

These are a few of the companies that can help build and support your business with Hong Kong, China and Asia.

06 / Trading and business

Business in Norway

Business organizations

For foreign corporations operating in Norway, the joint stock corporation and the branch are the most popular business forms. Other common business forms are partnerships, single proprietorships, co-operative societies and limited joint-stock partnerships. Franchising is growing rapidly and licensing is also common.

Import to Norway

Import restrictions: with the exception of its telecommunications, shipping and agricultural sectors, Norway maintains few restrictions on imports.

Import duties: Norway is a member of the European Free Trade Area (EFTA) and the European Economic Area, and maintains a single-column tariff list that employs the Harmonised System (HS) classification.

Import documentation: the commercial invoice plus a bill of lading or an airway bill. A certificate of origin is not required unless specified. The importation of live animals, animal products and plants requires a sanitary or health certificate.

Foreign investment

Norway is generally supportive of foreign private investment, particularly in three major areas: the petroleum industry, high technology projects, and projects in remotely populated regions. Concessions related to industrial activity are granted by the Ministry of Trade and Industry, and by the Ministry of Agriculture for agricultural projects. Norway permits 100 percent foreign ownership of investments and no registration is required for license, royalty, and technology agreements.

Dividends and profits from business activities in Norway, interest and contractual amortisation on loans, as well as repatriation of invested capital, are freely and fully remittable. Ordinary payments from within Norway to foreign entities are not subject to significant restrictions, provided they are made through a Norwegian commercial bank. In contrast, some transfers of capital into Norway require foreign exchange licenses.

Foreign investment is restricted under the following circumstances:

  • Public sector industries (postal services, railways, broadcasting, production of alcohol and drugs).
  • Owning or controlling natural resources.
  • Special approval is needed for the purchase of certain types of real estate.
  • Approval is needed to acquire more than a certain percentage of the voting shares in listed Norwegian companies.
Taxation
  • Corporate income tax: earnings of foreign subsidiaries in Norway are taxed at ordinary corporate tax rates. Corporate income tax is levied at a flat rate of 28% for companies.
  • Dividends paid to non-resident shareholders, excluding stock dividends, are subject to a withholding tax of 25% at the source. Foreign-owned firms domiciled in Norway are subject to taxes on their global incomes.
  • Personal income taxes: persons who reside in Norway (defined as a stay beyond six months) are subject to tax on their worldwide income and assets, ranging from 7.8% to 49.3%. Non-residents are taxed only on their Norwegian source income. Persons who are in Norway temporarily (less than four months) are only taxed on income for services provided in Norway and paid by a Norwegian employer.
  • Value-added tax (VAT): VAT is presently calculated at a rate of 8 to 25 per cent of net price on both domestic and imported goods. On imported goods, the VAT is payable to Norwegian customs authorities at the time of entry, but capital equipment is exempt from the VAT.
  • A reduced payroll tax schedule is applied to businesses operating in less populated regions of Norway.

Further information: The Ministry of Finance · The Ministry of Trade and Industry · The Brønnøysund Registers (Company Registry)

07 / Trading and business

Visa requirements

Hong Kong

Norwegians do not require a visa to enter Hong Kong for a duration of not more than 3 months, but employment and study are prohibited. In order to take up employment in Hong Kong, an employment visa or an investment visa is required.

More details: Visa, under You and your family

Norway

Entry requirements: since 25 March 2001, Norway has been one of the Schengen countries. Hong Kong and Macau SAR passport holders do not require a visa to travel to the Schengen area, including Norway. Holders of BNO passports have been visa free to Norway since 19 January 2007. However, holders of Certificates of Identity or Documents of Identity still have to apply for a visa to visit Norway. Foreigners who need a visa to Norway and are working or living in Hong Kong with an HKID card can apply for a business or tourist visa to Norway at the Consulate General of Finland in Hong Kong.

Consulate General of Finland, Hong Kong

China

Entry requirements: Norwegians need a visa for Mainland China even if one resides in Hong Kong. The passport must be valid for at least 6 months from the time of visa application. Visas are issued by the Chinese Embassy in Oslo or by the Visa Office of the Ministry of Foreign Affairs of the People’s Republic of China in Hong Kong.

Visa Office: 7/F, China Resources Building, Lower Block, 26 Harbour Road, Wanchai, Hong Kong · Tel: +852 3413 2300 · Fax: +852 3413 2312 · Email: fmcovisa_hk@mfa.gov.cn

Chinese Embassy in Oslo

Taiwan

Entry requirements: Norwegians can visit Taiwan without a visa if the stay is not more than 30 days, provided that the traveller’s passport has a validity of at least six months after entry, a confirmed return air ticket or an air ticket and a visa for the next destination, and a confirmed seat reservation for departure.

08 / Trading and business

Invest in Norway

The Norwegian government welcomes foreign investments. The tax system is neutral toward foreign and local investments.

An industrial production facility placed in an underdeveloped area would be favored by local and central governmental bodies.

Trade policy

The government supports free trade and non-interference. Some limitations do exist but only applied to the protected areas like fisheries and agriculture, and based on environmental considerations.

Investment policy

The Norwegian government is generally positive toward all investments, foreign and local. For this reason, Invest in Norway, an official and nationwide body for attracting foreign investments, was established in 1993. Invest in Norway is an affiliate of the Norwegian Industrial and Regional Development Fund (Statens Narings og Distriktsutviklingsfond, SND), whose main purpose is to enhance profitable business and economic trade development throughout the entire country. It will contribute to product development and new establishments as well as expansion. The SND provides aid through loans, guarantees, subsidies, and investments with share capital stocks.

Exchange controls

Norway imposes no currency and foreign exchange controls, and there are no licensing requirements in force. The only exchange control requirement is a reporting requirement for international payments and financial transactions. This reporting is generally taken care of by the transaction bank.

Forms of business enterprise

Norway supports the following types of business enterprises:

  • Public limited liability company: Allmennaksjeselskap (ASA)
  • Private limited liability company: Aksjeselskap (AS)
  • Branch of a foreign company or corporation: Filial av utenlandsk aksjeselskap
  • Unlimited (general) partnership: Ansvarlig selskap (ANS)
  • Unlimited (general) partnership with pro rata responsibilities: Ansvarlig selskap med delt ansvar (DA)
  • Limited partnership: Kommandittselskap (K/S)
  • Sleeping partnership: Stille selskap
  • Joint venture: Samarbeidsavtale
  • Sole proprietorship: Selvstendig naeringsdrivende firma
  • Cooperative ventures: Samvirkeforetak
Capital requirements

A private limited liability company (abbreviated AS) must have a minimum share capital of NOK 100,000. A public limited liability company (allmennaksjeselskap, ASA) must have a share capital of at least NOK 1 million.

Repatriation of funds

Subject to taxation, funds are freely and fully remittable. Dividends are distributed once annually, interest as agreed.

Founders’ requirements

To establish a company (AS or ASA), one founder is sufficient. At least one-half of the founders must be residents of Norway and have lived in Norway for the last two years, or be citizens of an EEA member state if resident in that state.

The Norwegian Industrial and Regional Development Fund (SND)

The Norwegian Industrial and Regional Development Fund (Statens narings- og distriktsutviklingsfond, SND) was established in 1993 and has played an important role in the value-creating process of Norwegian trade and industry. SND promotes new and innovative business development by finding, refining, funding and following up interesting projects and enterprises.

As from 1 January 2004, the new state owned company, Innovation Norway, has replaced SND and the following organisations:

  • The Norwegian Tourist Board
  • The Norwegian Trade Council
  • The Government Consultative Office for Inventors

Innovasjon Norge (Innovation Norway), Akersgaten 13, N-0104 Oslo, Norway · Tel: +47 22 002500 · Fax: +47 22 002501 · Email: post@invanor.no

Innovation Norway

09 / Norway in Hong Kong

Norway in Hong Kong

Online registration for Norwegians abroad

The Ministry of Foreign Affairs (Utenriksdepartementet) would like all Norwegians abroad to register in case the Norwegian Government should need to contact you.

Register at reiseregistrering.no

Royal Norwegian Honorary Consulate

Current Honorary Consul to Hong Kong is Ms. Sabrina Chao.

Royal Norwegian Honorary Consulate, 26/F Shanghai Industrial Investment Building, 48-62 Hennessy Road, Wanchai, Hong Kong

Tel: +852 2546 9881 · Fax: +852 2546 9887 · Email: hong-kong@norwayconsulate.com

Office hours: Monday to Friday, 10:00 to 17:00

The Honorary Consulate in Hong Kong

Norwegian Seamen’s Church

The old Norwegian Seamen’s Church in Hong Kong ceased operation in the 1980s. Instead, a Norwegian-based Seaman’s Priest ambulates the Asian and Pacific region, and travels to Hong Kong several times a year. Current Seaman’s Priest for Asia is Mr Steinar Rishaug.

Email: sri@sjomannskirken.no

Sjømannskirken, the Norwegian Church Abroad

Norwegian International School in Hong Kong

Norwegian International School is a Christian, international, non-profit school owned by the Norwegian Lutheran Mission (NLM). In 2010 the founder of the school, the Norwegian Lutheran Mission, transferred the sponsorship of NIS to Generations Christian Education (Generations). The school is registered with the Education and Manpower Bureau of Hong Kong.

175 Kwong Fuk Road, Tai Po, New Territories · Tel: +852 2658 0341 · Fax: +852 2651 0050

Norwegian International School

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The Norwegian Chamber of Commerce in Hong Kong (NorCham) is a business forum for representatives of Norwegian companies in Hong Kong, representatives of local companies with links to Norway and individual members with various links to Norway.