Amazon Sellers: Hong Kong Company vs US LLC vs Singapore — Costs, Process & How to Choose
First, the Conclusion: Should Amazon Sellers Choose a Hong Kong Company?
A Hong Kong company is not the lowest-cost or best option for every Amazon seller. If you already have a Hong Kong or China supply chain, need to collect payments in multiple currencies, or want to use Hong Kong as your operating base for going overseas, a Hong Kong company deserves priority consideration. If your main operations, team, customers and tax nexus are concentrated in the US, include a US LLC in the comparison. If the goal is a Southeast Asia regional headquarters, consider a Singapore private limited company. None of the three allows Amazon KYC pass rates or tax burden to be inferred from the place of registration alone.
| Situation | Evaluate first | Key considerations |
|---|---|---|
| Chinese-language supply chain, cross-border payments | Hong Kong company | Annual company secretarial, audit and tax filing |
| US operations or US-based team | US LLC | State fees, federal/state tax and filings |
| Southeast Asia regional setup | Singapore company | Corporate tax, GST, annual returns and audit conditions |
How Much Does a Hong Kong Company Cost for Amazon Sellers?
Break down government fees, compliance costs and Amazon platform fees separately — don't just look at a single quote for incorporating a company.
Government Fees for Incorporating a Hong Kong Company
Electronic incorporation of a Hong Kong private limited company: HK$1,545. Paper submission: HK$1,720. From 1 April 2026 to 31 March 2027, the one-year business registration fee and levy total HK$2,350. So the government-level cost of electronic incorporation plus first-year business registration is approximately HK$3,895; paper submission approximately HK$4,070.
This excludes company secretarial, registered office, accounting, audit and agent fees. Secretarial company packages commonly seen in the market itemise these separately, and incorporation fees can range from HK$3,000 to HK$8,000 — the key is to check what is included line by line.
Sources: Companies Registry key fees, Inland Revenue Department business registration fee and levy table.
Don't Judge Annual Maintenance Costs by the Business Registration Certificate Alone
A private company's annual return must be filed within 42 days of the return's date, and the filing fee is HK$105. Late fees can rise in stages from HK$870 up to HK$3,480.
Also factor in the administrative costs of company secretarial and registered office, bookkeeping, audit, profits tax filing, and banking/payment accounts. Annual fees for company secretarial and registered office services are typically around HK$2,000–HK$5,000, while audit fees depend on turnover and transaction volume — audits for small companies typically start at around HK$6,000–HK$10,000. Ask providers for an itemised quote, not just a single price for "company incorporation".
Amazon Platform Fees Are a Separate Cost Layer
Taking Amazon US as an example, Individual sellers pay US$0.99 per item sold and Professional sellers pay US$39.99 per month. On top of that there are category-based referral fees (typically 8%–15%), plus optional service fees such as FBA and Amazon Ads.
These are reference prices for the US marketplace; rules for other marketplaces and actual categories should be re-verified.
Source: Amazon official Selling on Amazon pricing page.
How Do Hong Kong Companies, US LLCs and Singapore Companies Compare?
Rather than just asking which has the lowest tax rate, compare the three entity types across five dimensions.
Five Comparison Dimensions
| Dimension | Hong Kong company | US LLC | Singapore company |
|---|---|---|---|
| Tax | Territorial source principle, two-tier profits tax | Depends on state, tax status and filing arrangements | Corporate tax, GST and audit conditions must be checked against the latest rules |
| Annual compliance | Business registration, annual return, company secretarial, audit | State annual fees and federal/state filings | Annual returns, company secretarial, tax and possible audit |
| Payments | Hong Kong banks or compliant third-party payment tools | More US banking and payment platform options | Southeast Asian banking and regional payment arrangements |
| Amazon KYC | Must submit company, address, director and tax documents | Must also meet Seller Central requirements | Must also meet Seller Central requirements |
| Supply chain | Suited to Chinese-language supply chains and cross-border transactions | Suited to teams with strong US operational ties | Suited to ASEAN regional setups |
Make the Final Call Based on Operational Facts
Answering the following five self-assessment questions is more useful than comparing tax-rate tables:
- Where are your main suppliers and inventory?
- Which Amazon marketplace(s) are you targeting?
- Where do the directors and ultimate beneficial owners live?
- Which currencies do you need for collections, payments and bank accounts?
- Can your team handle annual company secretarial, audit, tax filing and document maintenance?
Laying out the answers, most sellers will find that tax rates are not the only variable — the annual compliance burden, and whether banking and payment channels actually work, are often the real sticking points.
The Complete Process from Incorporating a Hong Kong Company to Amazon KYC
- Check name availability and prepare incorporation documents, shareholding structure and director details.
- Obtain the Certificate of Incorporation, Business Registration Certificate and related company documents.
- Arrange company secretarial, registered office and Trust or Company Service Provider (TCSP).
- Evaluate a Hong Kong bank account or external payment tools such as Payoneer and WorldFirst.
- Submit company name, address, directors, beneficial owners and tax documents in Seller Central.
- Once verification is passed, confirm the Professional/Individual seller plan, FBA, platform commissions and the requirements of the target marketplace.
- Build an annual compliance checklist and retain platform reports, supplier invoices, logistics records, contracts and transaction decision records.
Payoneer, WorldFirst, banks, FBA and Amazon seller plans are all external platforms or market options, not proprietary products of any particular service provider.
A Hong Kong Company Does Not Mean 0% Profits Tax
This is where sellers most often get it wrong.
The Two-Tier Tax Rates and Offshore Profits Are Two Different Things
The two-tier profits tax rate for a Hong Kong corporation is 8.25% on the first HK$2,000,000 of assessable profits and 16.5% thereafter.
Hong Kong applies the territorial source principle, but the source of profits is a question of fact — you cannot assume profits are offshore or tax-exempt simply because a company is incorporated in Hong Kong. The Inland Revenue Department will examine the actual transaction flow, where decisions are made, where contracts are signed and how goods are delivered.
- Do not lightly believe claims like "guaranteed 0%", "definitely tax-free" or "automatically applicable to all Amazon sellers".
- Consult accounting, tax or legal professionals based on your actual transaction flow.
Sources: IRD two-tier profits tax rates, IRD guide to the territorial source principle.
Five-Minute Checklist: Is a Hong Kong Company Worth Evaluating First?
- You have a stable Chinese-language supply chain or Hong Kong transaction arrangements.
- You need to collect payments in multiple currencies and pay suppliers.
- You can accept annual company secretarial, annual return filing, audit and tax filing work.
- You can keep Amazon, bank, supplier and shareholder information consistent and organised.
- Your goal is not simply to chase the lowest tax rate, but to build a sustainable structure for going overseas.
FAQ
Is a Hong Kong Company Worth It for Amazon Sellers?
It depends on your supply chain, target marketplaces, payment methods, annual maintenance and tax facts — you cannot compare only the first-year government fees for incorporation.
What Are the First-Year Government Fees for a Hong Kong Company?
For the 2026/27 year, electronic incorporation plus one-year business registration is approximately HK$3,895; paper submission approximately HK$4,070, excluding company secretarial, registered office, accounting and audit fees.
Does a Hong Kong Company Always Pay 0% Profits Tax?
Not necessarily. An offshore profits claim must be assessed case by case based on actual business activities, where decisions are made and the supporting evidence — it cannot be inferred directly from the place of incorporation.
Can I Run an Amazon Business Without a Hong Kong Bank Account?
Compliant external payment tools are available to consider, but whether they can be linked, the fees charged and account reviews remain subject to the current rules of Amazon and the payment platform.
Which Is Best: Hong Kong Company, US LLC or Singapore Company?
First compare your place of operations, supply chain, banking, tax residency, target marketplaces and annual compliance burden, then make your choice.
How Big Is the Difference Between Amazon Individual and Professional Seller Plans?
The official reference prices for the US marketplace are US$0.99 per item for Individual and US$39.99 per month for Professional, plus category referral fees and optional service fees; actual figures for other marketplaces should be verified separately.
Evaluate Company Structure and Payments Compliance Together
If you are evaluating using a Hong Kong company for your Amazon overseas business, you can learn more about coordinating Hong Kong company incorporation, company secretarial and annual compliance services, as well as advisers on cross-border tax, income source and banking/payment arrangements. Regulated trust or company services are provided by Intelligent Services Limited (TCSP TC010349), not by Chan & Chung itself.
Learn more about Hong Kong company and cross-border compliance services