Where should Chinese indie hackers set up a company? (2025 comparison)

As a Chinese resident and non-US citizen, your decision should prioritize Ease of Banking, Maintenance Effort, and Total Annual Cost.

For an indie hacker in China, the US (Wyoming) LLC is usually the most cost-effective and flexible, while Hong Kong is the best for prestige and traditional banking but has much higher maintenance burdens.

2025 Comparison: US (Wyoming) LLC, Hong Kong (Ltd), United Kingdom (Ltd), Singapore (Pte Ltd)

Below is a quick table extracted from the provided comparison graphic (2025 estimates). Use these as a starting point — costs and rules change, always confirm with local authorities or service providers.

Metric	US (Wyoming) LLC	Hong Kong (Ltd)	UK (Ltd)	Singapore (Pte Ltd)
Typical Setup Fee	$300 – $500	$800 – $1,200	$100 – $250	$2,500 – $4,000
Annual Maintenance	$150 – $300	$1,500 – $2,500	$500 – $1,000	$3,500 – $5,000
Official Authority	WY Sec. of State	HK Companies Registry	UK Companies House	ACRA Singapore
Audit Required?	No	Yes (Annual)	No (if < £10M Rev)	No (if < S$10M Rev)
Corporate Tax	0% (see note below)	8.25% – 16.5%	19% – 25%	17% (partial exempt)
Remote Setup?	100% Online	100% Online	100% Online	100% Online
Best Banking	Mercury, Wise	Airwallex, Statry	Wise, Payoneer	Aspire, Wise

Note: These are high-level estimates for 2025 and will vary by company size, service provider fees (e.g., corporate secretary, nominee director, accounting/audit), and local rules. Always verify current costs and legal requirements before deciding.

Quick takeaways

• Hong Kong: moderate setup cost, annual costs with mandatory audits — attractive tax rates in some cases but audits are a recurring burden for small companies.
• Singapore: higher setup and annual costs but strong startup ecosystem and straightforward tax incentives for startups; nominee/director requirements may increase setup complexity.
• United Kingdom: low setup cost and lower annual costs for small companies; audits are usually not required for small companies, making it cheaper to maintain for solo founders.
• The US: low setup and yearly maintenance costs, easy remote formation and banking (Mercury, Wise, Relay), and typically 0% US tax for foreign-owned single-member LLCs without a US trade or office — but you must handle IRS filings (Form 5472 + pro‑forma 1120) each year and budget for a CPA to avoid steep penalties.

1. US (Wyoming) LLC: The Indie Hacker Choice

This is the “standard” for solo founders globally.

• Pros: Cheapest to maintain. No audit required. No state income tax in Wyoming. You can open a Mercury or Wise account remotely.

• Cons: You must file Form 5472 and 1120 annually with the IRS (even with $0 revenue). Failure to file these has a $25,000 penalty.

• Tax: If you have no “US Trade or Business” (no US office, no US employees), you generally pay 0% US tax. You only pay personal income tax in China when you bring the money home.

• Tax Compliance: Budget $500–$800/year for a professional to handle your IRS filings so you don’t get fined.

• The “Trap”: Many providers (Doola, Firstbase) advertise $300 setup, but as a non-resident, you **must** file **Form 5472** and **1120 pro-forma** every year. Failure to file carries a **$25,000 penalty**.

• Provider Costs: * Setup: doola ($297+), [Firstbase](https://www.firstbase.io) ($399+).

• Tax Note: You only pay 0% US tax if you have no “US Trade or Business” (ETBUS). This means no US employees and no physical US office.

2. Hong Kong: The “Local” Choice(Ltd)

Very popular for mainland residents due to proximity, but the “hidden” costs are high.

• Pros: High reputation. Territorial tax (profits made outside HK can be tax-exempt). Excellent for connecting with mainland suppliers.

• Cons: Mandatory Annual Audit. You must hire a Certified Public Accountant (CPA) every year to audit your books, which costs $1,000–$2,000 even for a tiny company.

• Best For: If you need a “real” bank account (HSBC/BOC) or plan to deal with physical goods.

• The “Trap”: The setup is cheap, but the Annual Audit is mandatory. Even if you make $0, a CPA must review your books.

• Provider Costs: * Setup: Sleek or Osome (~$600–$1,000).

• Maintenance: Renewal ($300) + Company Secretary (~$300) + **Audit ($1,000+)**.

• Indie Hacker View: Best if you are doing high-volume e-commerce or need a “local” gateway to mainland China.

3. United Kingdom: The “Fast & Cheap” Choice

• Pros: Fastest setup (often < 24 hours). Very cheap filing fees.
• Cons: The UK is aggressive about Corporation Tax (19%+). If you are just “hacking” and want to keep 100% of your profit, the US LLC is better.
• The “Trap”: Companies House fees are increasing in Feb 2026 (Digital incorporation rising to £100).
• Provider Costs: 1st Formations or Your Company Formations (~£50–£150).
• Indie Hacker View: Cheapest overall, but you will deal with UK Corporation tax (19%) on every dollar of profit.

4. Singapore: The “Prestige” Choice

• Pros: Top-tier reputation. Great for raising VC money in SE Asia.
• Cons: Extremely expensive for foreigners. You are legally required to hire a “Nominee Director” (a local person to represent you), which costs $1,500–$3,000 per year just for their name.
• The “Trap”: Foreigners must hire a “Nominee Director” (a local resident). This usually costs $2,000/year just for the person’s name on the paper.
• Provider Costs: Sleek SG or Osome SG (~$3,000+ for foreigner packages).
• Indie Hacker View: Only choose this if you are raising VC money in Asia or moving to Singapore.

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5. A Critical Note on Taxes (China)

Regardless of where you register, as a Chinese resident, you are technically liable for Chinese Individual Income Tax (IIT) on dividends you pay yourself from these companies. Most indie hackers keep the money in the corporate account (e.g., in Mercury or Wise) to reinvest in the business to defer personal taxes.

Choosing the right jurisdiction is a balance between your budget, the “reputation” of the country, and how much time you want to spend on paperwork.

As a non-US resident in China, here is the expanded comparison and checklist for 2025/2026.

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6. Decision Checklist for Indie Founders

Use this to narrow down your choice:

Budget Check: * Do I have less than $1,000/year for admin? Pick US (Wyoming) or UK.

• Can I afford $2,000+/year for prestige/banking? Pick Hong Kong.

Tax Sensitivity:

• Do I want to pay 0% tax (legally) while I grow? Pick US (Wyoming) LLC.

• Am I okay with 19% tax for a simpler system? Pick UK.

Audit Tolerance:

• Do I hate paperwork and accountants? Avoid Hong Kong. (US/UK/SG are audit-exempt for small startups).

Target Market:

• Are most of my customers in the US/Global? Pick US.

• Am I doing business with Chinese factories/suppliers? Pick Hong Kong.

Payment Gateway:

• Do I need Stripe? All four work, but US LLC + Mercury Bank is the “golden path” for most indie hackers.

Final Recommendation

Option A: The Wyoming LLC (Recommended) Use a service like doola or Firstbase. They handle the registration, the Registered Agent, and most importantly, they help with the complex IRS tax filings (Form 5472) which is the biggest “trap” for Chinese founders.

• Total Annual Cost: ~$250 (State fee + Registered Agent) + ~$300-500 for tax filing help.

Option B: The Hong Kong Company Use Airwallex for your banking (it’s founded by Chinese entrepreneurs and very friendly to HK companies). Only choose this if you specifically need the HK legal system or a gateway to China.

• For 90% of solo Chinese Indie Hackers: Register a Wyoming LLC via doola or Firstbase. It offers the best balance of low cost, 0% US tax, and access to the US banking system (Mercury). Just ensure you use a compliance service to file your IRS forms every April.