Case: Company Registration in Hong Kong for Traffic Arbitrage. An International Structure for a Digital Business

A client working in digital marketing and specialising in traffic arbitrage approached KRYNO. The team ran advertising campaigns in international markets and worked with affiliate networks, advertising platforms, and partners from different countries.

At the initial stage, the business operated through personal accounts and local payment solutions. However, as advertising budgets, the number of partners, and international payments grew, this model began to create operational and compliance limitations.

The client faced several practical issues:

• limitations when working with international payment providers;
• difficulties in dealing with advertising platforms and affiliate networks;
• the need to increase trust among foreign counterparties;
• the need to separate personal finances from the team’s operating activities;
• the lack of a corporate structure adapted to growing turnover and business scaling.

For the client, it was important not simply to register a foreign company, but to create a fully fledged international structure for working with advertising platforms, receiving payments, entering into agreements, and further developing the digital business.

What the project support included

Business model analysis and jurisdiction selection

At the first stage, the KRYNO team analysed the client’s operating model, traffic geography, revenue sources, payment structure, and the requirements of potential financial partners.

When selecting the jurisdiction, we considered:

• the specifics of traffic arbitrage and affiliate marketing;
• the countries where advertising platforms and affiliate networks are registered;
• the ability to receive international payments;
• the jurisdiction’s reputation among banks and payment institutions;
• requirements for accounting, tax, and corporate support;
• prospects for increasing turnover and entering new markets.

We reviewed several jurisdictions used for international digital businesses and compared them in terms of tax burden, corporate administration, access to payment infrastructure, and alignment with the client’s actual operating model.

Based on the analysis, registering a company in Hong Kong was the optimal solution.

This jurisdiction matched the client’s key objectives thanks to its international business reputation, clear corporate model, and ability to work with counterparties from different countries.

An additional advantage was the territorial principle of taxation. If operations are properly structured and the source of income is appropriately documented, profits earned outside Hong Kong may not be subject to tax in the jurisdiction.

For a client working with international traffic, advertising platforms, and foreign partners, this made it possible to build a lawful and manageable tax model without creating an excessive administrative burden.

At the same time, Hong Kong was selected not only for its tax advantages. The company was intended to serve as a practical tool for:

• entering into agreements with international partners;
• receiving payouts from affiliate networks and advertising platforms;
• opening a corporate account;
• structuring financial flows;
• increasing trust among payment services and counterparties;
• further scaling the digital business.

This approach made it possible to create not merely a formal foreign company, but a corporate structure aligned with the client’s current operational needs and development plans.

Company registration and corporate structure setup

After selecting the jurisdiction, the KRYNO team supported the company’s registration in Hong Kong and helped build a corporate structure aligned with the client’s business model.

Our task was not only to register a legal entity but to create a foundation for further international operations. The company was intended to become the central element in interactions with advertising platforms, affiliate networks, payment providers, and foreign partners.

As part of this stage, we:

• registered the company in Hong Kong;
• prepared a complete package of corporate documents;
• provided advice on building the corporate structure;
• developed recommendations for organising financial flows;
• adapted the company structure to future business scaling.

We paid particular attention to ensuring that the corporate model met not only the client’s current needs but also allowed the business to expand smoothly, increase payment volumes, and work with international counterparties.

Preparation for opening a corporate account

The next stage was preparing the company to open a corporate account.

For a traffic arbitrage business, payment infrastructure is one of the key elements of day-to-day operations. That is why we paid particular attention to preparing the documents required for the compliance review.

The KRYNO team:

• prepared the document package for opening a corporate account;
• helped describe the business model and sources of income;
• provided recommendations on working with payment providers;
• supported the selection of a payment solution suited to the client’s business specifics;
• advised on structuring international payments.

High-quality document preparation significantly simplified subsequent communication with financial institutions and laid the foundation for stable work with international payments.

Accounting and corporate support

After the company was registered, KRYNO continued supporting the client with accounting, tax, and corporate administration in accordance with Hong Kong law.

The KRYNO team:

• organised bookkeeping;
• ensured the preparation of financial statements;
• supported the filing of tax returns (Profits Tax Return);
• provided advice on substantiating offshore status;
• prepared the company for the annual audit.

In Hong Kong, an audit is a mandatory part of corporate administration regardless of the company’s industry. We therefore paid particular attention to proper documentation of financial transactions, accurate bookkeeping, and timely compliance with local legal requirements.

As a result, the client was able to focus fully on business development, launching advertising campaigns, and scaling the project, while entrusting legal, accounting, and corporate support to the KRYNO team.