Setting Up A Family Office In Hong Kong
- Roger Pay
- Jun 8
- 7 min read
Setting Up A Family Office In Hong Kong
To set up a Single-Family Office (SFO) in Hong Kong, incorporate a private limited company via the Companies Registry e-Registry portal. Structure your assets into an Investment Holding Vehicle (FIHV) to access significant tax exemptions and enjoy Hong Kong's territorial tax regime.
Key Eligibility Thresholds
To qualify for the dedicated tax concessions and simplified operating rules, your SFO must meet the following criteria:
Family Ownership: Both the SFO and the investment holding vehicle must be at least 95% beneficially owned by the family (reducible to 75% if 25% is held by a tax-exempt charity).
Assets Under Management (AUM): Must exceed HKD 240 million. [1]
Local Operations: Must employ at least 2 qualifying investment professionals in Hong Kong (family members can qualify).
Operating Expenditure: Maintain a minimum annual operating expenditure of HK$ 2 million in the city.
Step-by-Step Setup Process
Define Objectives: Outline the family’s wealth preservation goals, asset scope, and succession plans.
Incorporate Entities: File the incorporation forms (Form NNC1 for a company limited by shares), Articles of Association, and Business Registration (Form IRBR1).
Draft the Family Charter: Establish internal governance and the family charter.
Fund & Transfer Assets: Transfer the family assets into the Investment Holding Vehicle.
Apply for Tax Concessions: Elect for the tax concession via the Inland Revenue Department. Because SFOs typically do not manage third-party funds, you generally do not need a license from the Securities and Futures Commission.
For dedicated Bestar support, guidance, and network connections, you can reach out to the Bestar Family Office HK team.
If you are looking to explore further, let me know if you would like me to:
Explain the immigration pathways (such as the New Capital Investment Entrant Scheme) Introduction To "Family Office" In Hong Kong - Global Law Experts
Detail the exact fees and costs for incorporating a company Setting Up A Family Office In Hong Kong
Connect you with corporate service providers that specialize in SFO setup Setting Up A Family Office In Hong Kong
Explain the immigration pathways (such as the New Capital Investment Entrant Scheme)
Hong Kong offers highly structured immigration pathways tailored to affluent individuals, family offices, and professionals looking to establish residency. Recent governmental updates create a seamless synergy between setting up a family office and securing residency.
The most prominent path is the New Capital Investment Entrant Scheme (New CIES), alongside highly utilized talent-based alternatives.
1. The New Capital Investment Entrant Scheme (New CIES)
The New CIES is a dedicated investor-migration program that grants residency to high-net-worth individuals and their immediate dependents (spouse and unmarried children under 18).
Core Financial Requirements
Net Assets: You must demonstrate absolute beneficial ownership of net assets worth at least HK$30 million (or foreign currency equivalent). The tracking window is only 6 months preceding the application (reduced from the previous 2-year mandate).
Joint and Corporate Assets: You can count assets held jointly with family members. Furthermore, assets deployed through your family office's Family-owned Investment Holding Vehicle (FIHV) can be utilized to meet the program requirements.
The HK$30 Million Investment Allocation
Your total capital must be split into two distinct baskets:
HK$27 Million (Permissible Assets): Must be deployed into local equities, debt securities, certificates of deposit, or locally registered investment funds. Residential real estate investments of HK$30 million or above can also contribute up to HK$10 million toward this limit.
HK$3 Million (CIES Investment Portfolio): Must be placed in a designated portfolio managed by the Hong Kong Investment Corporation Limited to support local innovation, technology, and strategic industries.
Application Flow & Timeline
Step 1: Submit net asset verification to the InvestHK New CIES Office.
Step 2: Upon receipt of verification, file Form ID(E)967 via the Immigration Department (ImmD) e-service portal.
Step 3: Receive Approval-in-Principle (AIP), which triggers the investment window.
Step 4: Complete the investment within the designated timeframe to secure your initial 24-month residence visa.
2. Alternative Talent & Employment Pathways
If you choose not to lock up capital under the New CIES, you can leverage your family office infrastructure to sponsor your own residency through employment or talent pathways.
Top Talent Pass Scheme (TTPS): Ideal for high earners. If you generated an annual income of HK$2.5 million or more in the preceding year, or hold a degree from a top-100 global university, you can secure an unconditional 24-month work visa immediately.
General Employment Policy (GEP): If you set up a Single-Family Office (SFO) corporate entity in Hong Kong, that entity can act as a local corporate sponsor. You can then apply for a visa as a key executive or senior investment professional managing the family's assets.
The Path to Permanent Residency
Regardless of whether you enter via the New CIES or a talent visa, maintaining continuous ordinary residence or compliant investment structures in Hong Kong for 7 consecutive years qualifies you and your dependants to apply for Hong Kong Permanent Residency and a Hong Kong SAR passport.
To tailor this further to your family's needs, please let me know:
What is the nationality or current residency status of the principal applicant? (Note: Mainland Chinese nationals must hold foreign permanent residence to qualify for the CIES).
Do you intend to actively manage the investments yourself as an employee, or operate strictly as a passive investor?
Do you want a breakdown of the specific financial assets (like stocks, bonds, or LPFs) that qualify under the HK$27 million allocation?
For financial advice, consult a professional. Learn more
The exact fees and costs for incorporating a company
To incorporate a company for a Single-Family Office (SFO) in Hong Kong, you must pay mandatory government statutory fees, alongside optional but highly recommended corporate service provider fees to handle ongoing compliance.
The baseline mandatory government cost to incorporate a standard private company limited by shares is HK$3,895 (via electronic filing).
1. Mandatory Government Setup Fees (One-Time)
The initial setup costs are paid directly to the Hong Kong Companies Registry (CR) and the Inland Revenue Department (IRD) through the one-stop electronic incorporation service.
Fee Component | Electronic Submission (e-Registry) | Hard Copy Submission (Paper) | Frequency |
|---|---|---|---|
Company Registration Fee Setting Up a Family Office in Hong Kong - China Briefing | HK$1,545 Setting Up a Family Office in Hong Kong - China Briefing | HK$1,720 Setting Up a Family Office in Hong Kong - China Briefing | One-time Company Formation in Hong Kong: Process, Fees and Documents |
Business Registration Certificate (BRC) Hong Kong Company Registration Fee | HK$2,200 Hong Kong Business Registration Fees Are Going Up - Tannet Group | HK$2,200 Hong Kong Business Registration Fees Are Going Up - Tannet Group | Selectable (1-year) Setting Up a Family Office in Hong Kong - China Briefing |
Protection of Wages on Insolvency Levy Hong Kong Company Incorporation Costs: Full Breakdown ... | HK$150 Hong Kong Business Registration Fees Are Going Up - Tannet Group | HK$150 Hong Kong Business Registration Fees Are Going Up - Tannet Group | Tied to BRC Renew Hong Kong Business Registration Certificate (2026) - Sleek |
Total Baseline Government Cost | HK$3,895 Hong Kong Company Formation Cost 2026 - GrowAcross | HK$4,070 | — |
Note: You can opt for a 3-year BRC instead of a 1-year certificate. A 3-year BRC costs HK$5,720 in registration fees plus a HK$450 levy, bringing the 3-year government total to HK$6,170.
2. Corporate Service Provider Costs (Year 1)
Under the Hong Kong Companies Ordinance (Cap. 622), every local company must appoint a Company Secretary (who must be a Hong Kong resident or a licensed corporate body) and maintain a local registered office address.
Because family offices require meticulous setup and structural precision, families typically hire a Trust and Corporate Service Provider (TCSP). A standard year-one package typically runs between HK$8,000 and HK$12,000. This package bundles:
Professional incorporation filing services
Mandatory statutory Company Secretary appointment
Registered business address and mail handling
Corporate bank account opening coordination and documentation support
3. Recurring Annual Maintenance & Compliance Costs (Year 2+)
To keep the family office vehicle in good legal standing, you must budget for ongoing compliance and administrative maintenance, which generally costs between HK$11,000 and HK$25,000+ per year.
BRC Renewal: HK$2,350 annually (inclusive of the HK$150 levy).
Annual Return (Form NAR1) Filing Fee: Paid to the Companies Registry within 42 days of the incorporation anniversary. It costs only HK$105 if filed on time. Crucial Warning: Missing this deadline triggers harsh, escalating late penalties ranging from HK$870 up to HK$3,480.
Annual Audit & Profits Tax Filing: All Hong Kong companies must produce audited financial statements. Audit fees vary directly based on transaction volume, asset complexity, and the number of investment vehicles, starting around HK$3,000 to HK$10,000+ for a clean investment holding structure.
If you are ready to budget the structuring phase, let me know if you would like to look into:
The exact costs and setup fees for a Limited Partnership Fund (LPF) structure, which is highly preferred for multi-vehicle family offices.
The minimum capital requirements for opening private wealth or corporate bank accounts in Hong Kong.
Guidance on how to verify if a service provider holds a valid TCSP License with the CR.
Connect you with Bestar Hong Kong. Bestar Hong Kong corporate service provider specializes in SFO setup
Bestar Hong Kong is a licensed Trust or Company Service Provider (TCSP) that provides specialized compliance, structural, and operational solutions for setting up Single-Family Offices (SFOs).
You can connect with us directly using our verified institutional details below.
Primary Contact Channels
🌐 Official Website: Bestar HK Corporate Services
📧 Central Intake Email: admin at bestar-asia.com
🟢 Direct WhatsApp Line: +65 8836 4489
📱 WeChat ID: bestar-cn
📞 Hong Kong Office Phone: +852 3565 1861
📍 Physical Office Locations:
Sheung Wan HQ: Flat D, 20/F, Eton Building, 288 Des Voeux Road Central, Sheung Wan, Hong Kong
Core Specializations for SFO & Family Office Setup
Bestar’s in-house team handles the legal and financial frameworks required to claim tax concessions in Hong Kong:
Dual-Entity Incorporation: They manage the registration and ongoing corporate secretarial obligations for both the main Single-Family Office (SFO) corporate entity and its matching Family-owned Investment Holding Vehicles (FIHVs).
Bespoke Governance Architecture: We construct Private Trust Companies (PTCs) and coordinate Reserved Power Trusts, which allow family settlors to maintain definitive investment control without invalidating the trust's tax-exempt integrity.
Tax Optimization & Self-Assessment: We structure Special Purpose Entities (SPEs) using specific legal clauses—such as the 95% De Minimis Rule—ensuring alternative assets and high-yield private credit strategies successfully clear the self-assessment framework for a 0% tax exemption.
Residency Deployment: We coordinate structural reporting directly with InvestHK and the Hong Kong Immigration Department to sync family office assets with the capital placement rules of the New Capital Investment Entrant Scheme (New CIES).
If you want to consult with us, let me know if you would like:
A tailored request for proposal (RFP) that outlines your asset scale and entity preferences.
A customized checklist of documentation (like ultimate beneficial owner proofs) you will need to clear our initial KYC onboarding.
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