Hong Kong Family Office Guide - FamilyOfficeHK
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Discover why Hong Kong is the premier hub for family offices. Explore the 2025/2026 New CIES enhancements, low tax benefits, and step-by-step setup guide with Bestar HK.
Hong Kong Family Office Guide - FamilyOfficeHK
Why Hong Kong? The Premier Hub for Family Offices
As a globally recognized international financial and wealth management center, Hong Kong offers unparalleled strategic advantages for family offices. From its robust legal framework to its proximity to Mainland China, the city provides a stable yet dynamic environment for multi-generational wealth preservation.
1. A Robust and Trusted Legal System
Hong Kong’s commitment to the rule of law is the cornerstone of its stability. As the only common law jurisdiction within China, it offers a familiar legal landscape for international investors.
Judicial Independence: Renowned for quality and transparency, underpinned by the Basic Law.
Global Standards: Commercial and property laws are aligned with international best practices.
Effective Dispute Resolution: Recognized as the "Rolls Royce" of arbitration and mediation in Asia.
Bilingual System: The only common law market operating in both English and Chinese, bridging the gap between East and West.
2. The "One Country, Two Systems" Advantage
Since 1997, this principle has allowed Hong Kong to retain its independent monetary, fiscal, and taxation systems while serving as the world's largest offshore RMB hub.
Capital Mobility: No restrictions on foreign ownership or the movement of capital, talent, and information.
Strategic Gateway: Pivotal in the Belt and Road Initiative and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
Free Port Status: Simplified customs procedures and a highly competitive, open economy.
3. World-Class Talent and Professional Services
Hong Kong boasts a deep pool of globally experienced professionals ready to support complex family office structures.
Profession | Statistics (Approx.) |
|---|---|
Asset & Wealth Management | 42,000+ Practitioners |
Accounting | 45,000+ CPAs |
Legal | 13,000+ Solicitors & Barristers |
International Law | 90+ Registered Foreign Law Firms |
Our workforce is tech-savvy, multi-lingual, and highly adaptable to the evolving needs of Ultra-High Net Worth (UHNW) individuals.
4. Simple, Low, and Incentive-Driven Tax System
Hong Kong is one of the most tax-friendly jurisdictions globally, characterized by simplicity and transparency.
What Hong Kong Does NOT Impose:
No Sales Tax or VAT
No Investment Withholding Tax
No Capital Gains or Estate Tax
No Tax on Dividends or Savings Interest
Key Tax Incentives:
Two-Tiered Profits Tax: 8.25% on the first HK$2 million; 16.5% thereafter.
Profits Tax Exemptions: Available for privately offered onshore and offshore funds (subject to conditions).
Double Taxation Agreements (DTAs): 43+ active DTAs providing tax certainty for cross-border investments.
5. New Capital Investment Entrant Scheme (CIES)
To foster synergy between residency and wealth management, the HKSAR government has introduced enhanced measures:
Net Asset Requirement: Demonstrate beneficial entitlement to at least HK$30 million in net assets.
Investment Holding: Applicants can now hold investments through a Family-owned Investment Holding Vehicle (FIHV), provided it is managed by an Eligible Single Family Office with a minimum AUM of HK$240 million.
Real Estate Flexibility: Residential real estate (threshold HK$30million) now counts toward the investment limit (up to HK$10 million).
6. Setting Up Your Family Office with Bestar HK
Establishing a family office in Hong Kong is efficient and cost-effective. Whether you are looking for a Single-Family Office (SFO) or a Multi-Family Office (MFO), the process follows standard corporate compliance.
Choosing Your Entity Type:
Limited Company: Most common; provides full tax benefits and CEPA advantages.
Branch Office: Ideal for foreign parent companies looking to leverage existing credit ratings.
Representative Office: Best for market exploration (non-profit making).
Key Requirements:
Structure: Minimum one director (natural person) and one company secretary (HK resident/body corporate).
Registered Office: Must be situated in Hong Kong.
Transparency: Maintain a Significant Controllers Register (SCR) for beneficial ownership.
7. Licensing and Compliance
There is no "family office license" per se. Licensing under the Securities and Futures Ordinance (SFO) is activity-based.
No License Required: If the SFO manages internal family trust assets or qualifies for the intra-group carve-out.
License Required: If providing services to third parties (non-related entities).
Partner with Bestar HK
Hong Kong Family Office Guide - FamilyOfficeHK
Navigating the regulatory and tax landscape of Hong Kong requires local expertise. Bestar HK provides comprehensive support—from company incorporation and bank account opening to tax consultancy and identifying prime business locations.
Contact Us Today:
Office: Flat D, 20/F, Eton Building, 288 Des Voeux Road Central, Sheung Wan, Hong Kong
Tel: +852 3565 1861
Email: admin@bestar-asia.com
LinkedIn Announcement Post
Target Audience: UHNWIs, Asset Managers, and Legal Professionals.
Headline: 🇭🇰 Why Hong Kong Remains the "Rolls Royce" of Family Office Jurisdictions
The landscape for wealth management in Asia is evolving, and Hong Kong is leading the charge with strategic enhancements to its New Capital Investment Entrant Scheme (CIES) and a robust common law framework.
At Bestar HK, we’ve broken down the core advantages for global families looking to establish a footprint in the region:
✅ Tax Efficiency: No capital gains, no VAT, and a simple two-tiered profits tax.
✅ Enhanced CIES: New flexibility for Family-owned Investment Holding Vehicles (FIHV) and residential real estate investments.
✅ Regulatory Clarity: Activity-based licensing—many single-family offices may operate without an SFC license under specific carve-outs.
✅ Strategic Gateway: Unrivaled access to the Greater Bay Area and the world’s largest offshore RMB pool.
Setting up is streamlined, but navigating the compliance "fine print" is where experience matters. From choosing the right entity structure to managing the Significant Controllers Register (SCR), our team is here to ensure a seamless transition.
Visit us in Sheung Wan or reach out at admin@bestar-asia.com to discuss your family office strategy.
#FamilyOffice #HongKongBusiness #WealthManagement #CIES #BestarHK #AssetManagement #GBA #InvestmentStrategy
Checklist: Setting Up Your Hong Kong Family Office
This checklist is designed to help UHNW individuals and their advisors navigate the foundational steps of establishing a presence in Hong Kong.
Phase 1: Strategic & Legal Structuring
[ ] Identify Office Type: Determine if you require a Single-Family Office (SFO) (internal family management) or a Multi-Family Office (MFO) (serving multiple families).
[ ] Licensing Assessment: Consult with legal counsel to confirm if your activities fall under the Securities and Futures Ordinance (SFO) regulated activities or if they qualify for "intra-group" carve-outs (common for SFOs).
[ ] Choose Entity Structure: * Private Limited Company (most common for tax benefits).
FIHV (Family-owned Investment Holding Vehicle) (specifically for CIES/Tax concession compliance).
[ ] Select Company Name: Conduct a free search via the Companies Registry’s Cyber Search Centre to ensure name availability.
Phase 2: Incorporation & Compliance
[ ] Appoint Key Personnel:
At least one Director (Natural person, can be a non-resident).
One Company Secretary (Must be an HK resident or HK-incorporated body corporate).
[ ] Establish Registered Office: Must have a physical address in Hong Kong (Bestar HK can provide this if needed).
[ ] Submit Incorporation Documents: File Form NNC1 and Articles of Association with the Companies Registry (CR).
[ ] Register for Business Registration (BR): Apply simultaneously with incorporation to receive your BR Certificate.
[ ] Significant Controllers Register (SCR): Prepare and maintain a register of beneficial owners to meet AML transparency requirements.
Phase 3: Banking & Financial Setup
[ ] Open Corporate Bank Account: Prepare identity and residence proof for all beneficial owners. Note that most HK banks require a minimum initial deposit.
[ ] Capital Injection: Ensure the HK$30 million net asset requirement is met if applying under the New CIES.
[ ] Appoint Professional Services: Engage an accounting firm (like Bestar HK) for ongoing bookkeeping, tax filing, and annual audits.
Phase 4: Residency & Talent (If Applicable)
[ ] Apply for New CIES: For eligible applicants seeking residency through a minimum HK$30 million investment.
[ ] Employment Visas: If bringing in overseas staff, apply for the General Employment Policy (GEP) visa.
[ ] Dependant Visas: Arrange for family members (spouse and children under 18) to join the primary visa holder.
Phase 5: Ongoing Operations
[ ] Annual Return Filing: Submit the Annual Return to the CR within 42 days of the anniversary of incorporation.
[ ] Tax Returns: File the annual Profits Tax Return with the Inland Revenue Department (IRD).
[ ] Mandatory Provident Fund (MPF): Enroll any local employees in a registered MPF scheme.
Get Expert Assistance
Setting up a family office involves multi-layered compliance. Bestar HK acts as your local partner to handle the administrative and regulatory heavy lifting so you can focus on wealth preservation.
Summary: New CIES & Investment Portfolio (2025/2026)
The New Capital Investment Entrant Scheme (CIES) is a strategic residency pathway designed for high-net-worth individuals to establish their family's future in Hong Kong while benefiting from its world-class financial ecosystem.
1. Financial Eligibility Requirements
To qualify for the New CIES, applicants must meet specific asset and investment thresholds:
Net Asset Requirement: Demonstrate absolute beneficial entitlement to net assets of at least HK$30 million (or equivalent in foreign currency) throughout the two years preceding the application.
Total Investment: A minimum investment of HK$30 million in permissible assets is required.
2. The HK$30 Million Investment Split
The total investment is divided into two distinct categories:
A. Permissible Investment Assets (HK$27 Million)
Applicants must invest at least HK$27 million in any combination of the following:
Equities: Shares of companies listed on the Hong Kong Stock Exchange (HKEX).
Debt Securities: Bonds issued or guaranteed by the HKSAR Government, Exchange Fund, or HKEX-listed companies.
Certificates of Deposits (CDs): Issued by authorized institutions (capped at HK$3 million).
Subordinated Debt: Issued by authorized institutions for their supplementary capital.
Eligible Collective Investment Schemes: Including SFC-authorized funds and Real Estate Investment Trusts (REITs).
Ownership in Private Companies: (New 2025 Enhancement) Investments held via a Family-owned Investment Holding Vehicle (FIHV) managed by an eligible Single Family Office.
Non-Residential Real Estate: Commercial and/or industrial properties in Hong Kong (capped at HK$10 million).
Residential Real Estate: (New 2025 Policy) Single properties with a transaction price of HK$30 million or above (up to HK$10 million of this investment counts toward the HK$27 million requirement).
B. CIES Investment Portfolio (HK$3 million)
A mandatory HK$3 million must be placed into the CIES Investment Portfolio.
Management: Handled by the Hong Kong Investment Corporation Limited (HKIC).
Purpose: To support the development of Hong Kong's innovation, technology, and strategic industries.
Nexus: Investments are directed toward companies or projects with a strong Hong Kong connection to ensure long-term economic benefit.
3. Key Enhancements (Effective March 2025)
The HKSAR government has introduced several measures to make the scheme more flexible for family offices:
FIHV Integration: Applicants can now hold their permissible investments through a private company (FIHV) if it is wholly owned by the applicant and managed by an eligible Single Family Office with an aggregate NAV of at least HK$240 million.
Real Estate Flexibility: The aggregate cap for real estate counting toward the minimum threshold has been raised to HK$15 million, provided the residential portion does not exceed HK$10 million.
4. Benefits of the Scheme
Residency for Family: Successful applicants can bring their spouse and unmarried dependent children under 18.
Pathway to Permanent Residency: After seven years of continuous ordinary residence, applicants and their dependants may apply for Hong Kong permanent resident status.
No Active Management Required: Unlike entrepreneur visas, the CIES does not require the applicant to establish or join a business personally.
Partner with Bestar HK
Bestar HK specializes in navigating the "one-stop" application process for the New CIES.
We assist with:
Asset Verification: Preparing the necessary net asset assessment reports.
Portfolio Maintenance: Ensuring ongoing compliance with the investment requirements throughout the permitted stay.
Family Office Setup: Coordinating the management of your FIHV to ensure it meets the HK$240 million AUM and operational expenditure requirements.
Strategic Residency & Wealth Management Opportunities in Hong Kong (2025/2026)
Dear Client,
As we move into 2026, Hong Kong has solidified its position as Asia’s leading destination for families seeking both robust wealth preservation and a world-class lifestyle. Recent policy enhancements have created a powerful synergy between the New Capital Investment Entrant Scheme (CIES) and the Family Office Tax Concession regime, making now an ideal time to formalize your presence in the region.
The HKSAR Government’s latest updates—including reduced residency thresholds for residential property (now HK$30 million) and the ability to hold investments through Family-owned Investment Holding Vehicles (FIHV)—offer a level of flexibility and efficiency previously unseen in the market.
At Bestar HK, we specialize in bridging the gap between high-level investment strategy and local regulatory compliance. We have prepared the attached summary of the New CIES & Investment Portfolio requirements for your review. This guide outlines:
Financial Thresholds: Navigating the HK$30 million net asset and investment requirements.
Asset Allocation: A breakdown of the permissible HK$27M financial/real estate investments and the mandatory HK$3M CIES Portfolio.
Recent Enhancements: How the 2025/2026 policy shifts benefit UHNW families and their existing corporate structures.
Path to Residency: The step-by-step timeline from initial application to potential permanent residency.
Our team is ready to assist you with every aspect of this transition, from conducting the initial net asset assessment to coordinating with the Hong Kong Investment Corporation (HKIC) on your behalf.
We would welcome the opportunity to discuss how these new measures can be tailored to meet your family’s unique long-term objectives.
Warm regards,
Bestar HK
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