Enrolling a capital in Hong Kong may serve as a dependable inception for establishing a remunerative enterprise.
Regulation of investment funds in Hong Kong
The primary overseer liable for managing the undertakings of investment pools in Hong Kong is HKO (Hong Kong Securities and Futures Commission).
It is valuable to mention that instituting a fund in Hong Kong necessitates a charter from the overseer. Specifically, the capital pool overseer is mandated to acquire:
- Type 1 Licence (Securities Transactions);
- Type 4 Licence (Securities Transaction Advice);
- Type 9 Licence (Asset Management).
Registration of an investment fund in Hong Kong: legal forms
Those who aspire to conduct commerce in Hong Kong possess the opportunity to establish a clandestine pecuniary endowment in Hong Kong in correspondence with:
- Limited liability partnership;
- Joint Stock Company;
- SPV (Special Purpose Vehicle);
- Investment Management Company.
Commencing a pecuniary pool: prerequisites for alien inhabitants
Exotic visionaries desiring to inscribe a pecuniary pool in Hong Kong ought to bestow distinct heed to the subsequent:
- To vend the fund's commodities, aliens shall necessitate enregistering or procuring fitting empowerment from the SFC. It is attainable to procure a fleeting charter from the SFC, presuming there subsists a subsidiary in Hong Kong or a native offspring is constituted.
Varieties of stakeholders
In preparation for establishing a fund in Hong Kong, take note that sanctioned financiers may encompass:
- Pension funds;
- Assurance corporations;
- Confidential money-lenders;
- Wealth oversight enterprises;
- Capital pools of capital;
- Affluent individuals;
- Household treasuries.
Imposition of investment pools in Hong Kong
If you plan to enroll a capital in Hong Kong, kindly peruse the ensuing data concerning the fiscal system:
- Capital beyond Hong Kong might garner immunity from Hong Kong gain levy, should specific stipulations harmonize with the Internal Revenue Decree (Cap 112);
- Merchant investment reservoirs remain unaffected by revenue tolls granted they possess an SFC warrant;
- In the event the capital assumes a corporate framework, stakeholders could evade dividend toll.
Depending on the juridical arrangements opted for, the writings necessary to enlist an establishment in Hong Kong may comprise:
- Limited liability partnership agreement;
- Stockholders' agreement and articles of incorporation;
- Private Placement Memorandum;
- Information on entering into investor agreements;
- Investment Management Agreement;
- Investment Advisory Agreement.
To procure intelligence regarding the comprehensive catalog of records, we recommend you to schedule an individualized juridical colloquy on establishment enrollment in Hong Kong.
Initiation of a capital reserve: supplementary prerequisites
Those who opt to record an investment pool in Hong Kong should be cognizant that the overseer necessitates fund stewards in Hong Kong to:
- Dispatch pecuniary means accessibility chronicles, furnish documents of scrutinized reckonings and yearbook narratives to the SFC.
- Dispense particulars on bonds and supplementary holding lent capital and indebtedness evidence.
How to inaugurate an establishment in Hong Kong
By communicating with the authorities at IQ Determination, you can acquire juridical aid in enrolling an investment pool in Hong Kong. Additionally, should you possess any inquiries, we advocate that you arrange a meeting for a discourse on fund ruling in Hong Kong.
To procure our amenities, complete the distinct questionnaire or employ the connections underneath.
Open-ended retail funds in Hong Kong are usually in the form of:
- Mutual Funds. These are trusts set up for the benefit of investors (the shares of the participants are called units). A unit trust is not a legal entity and the investors' assets are entrusted to a trustee;
- Mutual funds. A mutual fund is set up as a limited liability company in which investors are shareholders who have the right to redeem their shares at their discretion.
The SFC is the regulator for all funds established in Hong Kong and/or offered to the local community
The SFC must authorise both local and foreign retail funds before it commences operations. The authorisation procedure in Hong Kong includes:
- Review of key documentation.
- Approval of the prospectus and advertisements (unless an exemption applies) and other foundation documents.
- Authorisation of the fund