HK Ltd via Osome SG — Korean E-commerce Sellers
Korean e-commerce sellers targeting Amazon US and Asia-Pacific marketplaces use HK Ltd for territorial taxation and regional USD/HKD banking. Osome runs the HK Ltd with company secretary, filings, and audit for HKD 9,800+/year.
Under HK's territorial system, IRD taxes only HK-source profits at two-tier 8.25% (first HKD 2M) / 16.5%. Offshore-source profits (Amazon US revenue, Korean domestic sales) may qualify for exemption if the operational activity is documented as non-HK.
Korea side: Income Tax Act Article 3 taxes worldwide personal income once distributions received; the KR-US treaty grants 10% treaty rate on royalties but does not shield HK-source income.
Model the full outlay, not just the setup fee
- SetupOsome (Singapore) setup$1,650
- AnnualYear 2 renewal$1,080
What the tax authority sees
Hong Kong Ltd applies territorial taxation: IRD taxes only HK-source profits at two-tier 8.25% (first HKD 2M) / 16.5%; offshore claims possible with operational substance evidence.
National Tax Service; foreign-source income reporting per Income Tax Act Article 3; Korea has US tax treaty (10% treaty rate for royalties).
HK Ltd suits Korean e-commerce sellers targeting Amazon US and Asia; Korea-HK avoids the KR-US treaty complications and Article 3 worldwide income issues.
- 01Korean Income Tax Act Article 3 taxes worldwide personal income once distributed
- 02HK IRD two-tier 8.25%/16.5% on HK-source profits
- 03Korea CFC rules apply if HK Ltd effective tax rate below 17.5%
- 04IRD BEPS 2.0 enhanced substance rules from 2024 tighten offshore claims
From filing to funded bank account
Hong Kong Ltd vs UAE Free Zone (MEYDAN)
FAQ
Korean Income Tax Act Article 3 taxes Korean residents on worldwide personal income. Retained profits in HK Ltd (HK bank balance) not immediately taxed in Korea. Distributions received in Korea trigger personal income tax at 6-45% progressive brackets.
Start filing with Osome (Singapore)
Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.