Registering an investment fund in Hong Kong

Advantages of registering an investment fund in Hong Kong

Registering an investment fund in Hong Kong in 2024 represents an attractive option for international investors due to a range of unique advantages offered by this jurisdiction. Hong Kong is renowned for its status as a leading global financial hub, providing investment funds with access to international markets and substantial financial resources, which are crucial elements for their prosperity.

One of Hong Kong's notable features is its advantageous tax policy for investment funds. Funds conducting operations outside the region may qualify for exemption from corporate tax, subject to specific criteria. Retail investment funds authorized by the SFC are also excluded from profits tax, enhancing Hong Kong's appeal for managing international investments.

Hong Kong offers a dynamic and flexible regulatory climate conducive to asset management innovation. Local legislation consistently adapts to foreign standards and industry requirements, enhancing trust and reliability among investors and fund managers. Legislative enhancements facilitating fund registration streamline administrative barriers, simplifying processes for market participants.

In Hong Kong, investment funds benefit from skilled asset managers and advisors, enabling efficient investment oversight and fund reliability, crucially contributing to their prosperity. The region's political and economic stability, coupled with its international focus and strategic location in Asia, makes it a top destination for registering investment funds in Hong Kong.

Main types of investment funds in Hong Kong

Pension funds, insurance companies, private banks and others

The creation of an investment vehicle in Hong Kong marks a significant move for a wide range of investment stakeholders, such as retirement funds, insurers, boutique banks, and alternative financial entities. This initiative draws diverse financial bodies due to Hong Kong's distinctive benefits and opportunities in managing assets and making investments.

For example, establishing an investment fund in Hong Kong can be particularly attractive due to its stable regulatory environment and favorable tax policies. Pension funds aiming to maximize returns on their investments while minimizing risks may find Hong Kong conducive to achieving these objectives. Likewise, insurance companies constantly seeking efficient ways to manage their substantial assets can utilize Hong Kong as a platform to expand their investment opportunities.

Private banks offering asset management services to affluent clients may also find that Hong Kong presents attractive opportunities for portfolio diversification and access to Asian markets. Establishing a fund here could assist them in expanding their offerings and providing clients with a broader range of investment solutions.

In addition to these institutions, asset management firms seeking to expand their operations in Asia may consider Hong Kong as a key hub for their investment funds. Experienced asset managers can leverage the benefits of an international network and access to investment prospects in the region.


As a result, the creation of an investment fund in Hong Kong offers special chances to various financial institutions, giving them access to a variety of investment options in a stable economic climate.

Criteria for choosing the right type of fund

When deciding to register an investment fund in Hong Kong, it is crucial to meticulously consider and select the most suitable fund type. Investors should base their decision on a series of criteria defined by their objectives and tactics, alongside Hong Kong's particular demands and regulatory structure.

Investors initially start by outlining the investment goals and tactics when contemplating the registration of an investment fund in Hong Kong. Various categories of funds are ideally matched with distinct investment methodologies. For example, pension funds may favor more cautious investment methods, whereas private equity funds may pursue more dynamic strategies to attain superior returns.

The second key aspect in choosing a fund type in Hong Kong is understanding and aligning with regulatory requirements. Hong Kong has its unique regulatory standards and requirements that may vary depending on the fund type. For instance, funds managed for private investors may be subject to stricter regulatory requirements, whereas pension funds may enjoy specific privileges and preferences.

When selecting the category of investment fund for registration, it's crucial to also take into account the tax implications. Different fund types in Hong Kong may offer tax benefits that can profoundly influence the fund's overall investment strategy effectiveness. For instance, certain retail investment funds meeting specific criteria are not subject to profit tax.

In conclusion, when investors consider establishing an investment fund in Hong Kong, they must take into account a range of factors, including their investment objectives and strategies, compliance with regulatory requirements, and tax considerations. Careful analysis of these criteria will help select the most suitable fund registration type, ultimately facilitating the successful achievement of investment goals.

Conditions for receiving tax benefits and exemptions

The establishment of an investment fund in Hong Kong extends beyond mere asset management; it also encompasses familiarization with the tax incentive criteria and exemptions provided under Hong Kong law. These criteria are fundamental to ensuring the tax efficiency of the fund post-incorporation.

One of the primary prerequisites for launching an investment fund in Hong Kong is adherence to particular legal mandates. Similarly, funds operating outside Hong Kong may be exempt from income taxes if they satisfy specific conditions under local tax laws. This suggests that profits made by the fund outside of Hong Kong could not be subject to taxes, which would be quite advantageous if an investment fund were to be established there.

Retail investment funds sanctioned by the Hong Kong Securities and Futures Commission (SFC) also benefit from exemption from profits tax, highlighting the critical need for adhering to regulations and acquiring necessary licenses for fund management in Hong Kong.

In the case of corporate structured funds, investors may also be entitled to dividend tax exemption, enhancing Hong Kong's attractiveness as a hub for managing corporate investments.

Therefore, comprehending and adhering to the requirements to qualify for tax advantages and exemptions are crucially significant factors for individuals considering establishing an investment fund in Hong Kong. Adhering to these stipulations guarantees the complete utilization of the tax privileges available in Hong Kong's jurisdiction.

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Legislative framework and new laws

Registration of an investment fund in Hong Kong in 2024 entails meticulous adherence to unique regulatory standards and legislative nuances, creating a robust foundation for its operation. This financial center applies specific rules that should be considered when creating a fund.

The selection of fund organization is critical as diverse categories of funds are bound by differing regulations. For example, consumer funds are governed by unique prerequisites in contrast to private or partnership funds.

The pivotal stage of the process involves compiling and submitting requisite documents, encompassing establishment papers, constitutional agreements, and confidential placement memorandum. Furthermore, funds must furnish financial statements, audited accounts, and annual reports to the SFC, ensuring transparency in their operations.

Strict regulation and adherence to laws are crucial for launching and managing an investment fund in Hong Kong, ensuring compliance with high international standards of governance and operational activity. This is essential for the effective activities of the fund in Hong Kong's competitive and dynamically evolving financial environment.

For obtaining further information on the process of registering investment funds in Hong Kong, it is recommended to consult professional advisors or visit official resources such as the SFC website.

Preparation and submission of documents for registration

List of required documents

The establishment of an investment fund in Hong Kong involves meticulous preparation and the provision of a range of essential documents, which constitute the cornerstone of the registration process. These documents are of paramount importance, ensuring the fund's compliance with all regulatory standards and laying the foundation for its effective management.

When setting up an investment fund in Hong Kong, it is essential to provide such paperwork as:

  • The primary foundational records of a fund include paperwork like a partnership agreement for funds selecting a partnership setup, along with charters and articles of incorporation for those favoring a corporate format. These documents establish the legal framework for the fund's operation, setting forth its structure and managerial procedures.
  • Private Placement Memorandum: This document is pivotal in delineating the terms of the offering of fund securities to investors. It encompasses information regarding the fund's investment objectives, associated risks, and participant rights.
  • Documents related to fund management: these include asset management agreements and investment advisory guidelines. These documents establish the framework for fund asset management and provide detailed information on management strategies, fees, and other key aspects.

A comprehensive and precise set of documentation is crucial for the successful establishment of an investment fund in Hong Kong. These documents not only ensure compliance with legislative norms but also serve as the foundation for transparent and efficient relations between the fund and its investors.

Process of preparation and submission of documents

Establishing an investment fund in Hong Kong in 2024 entails a comprehensive process, necessitating strict adherence to established legal norms and regulations. This procedural pathway encompasses several pivotal stages aimed at ensuring full compliance with all requisite legal and operational standards.

The first step in this process is the meticulous development of the fund's constitutional documents, defining its structure, objectives, and governance principles. Such papers might differ based on the selected fund type but must absolutely adhere to Hong Kong legislative demands.

Then comes the stage of ensuring compliance of all financial and operational plans of the fund with established regulatory norms. Compiling financial statements, risk management strategies, and other associated documents showcasing the financial stability and transparency of the fund.

Documents prepared in previous stages are then submitted to respective regulatory bodies, such as the SFC. In this phase of the process, meticulousness and precision are crucial, as any deficiencies in the documentation can lead to protracted procedures or denial of registration for an investment fund in Hong Kong.

The registration process also includes a stage of regulatory scrutiny, which may necessitate additional information provision or personal meetings. Regulators assess the fund's compliance with established requirements and its capability to safeguard investors' interests.

Obtaining regulatory approval constitutes the final stage of the process, enabling the fund to commence operations. However, the fund must also be prepared to fulfill all ongoing obligations, including regular reporting and adherence to operational standards.

The planning and filing of paperwork to set up an investment fund in Hong Kong requires a systematic and detailed method at every stage. This guarantees the effective and smooth functioning of the fund in line with the rigorous standards of Hong Kong's financial landscape.

Extra specifications for investment funds

Financial reports and audit

Accounting services in Hong Kong play a pivotal role in the preparation of financial statements and audits for investment funds, crucial given the stringent regulatory requirements and high standards of financial reporting adopted in this jurisdiction.

Comprehensive servicing encompasses the preparation and submission of annual financial statements, which must reflect all financial operations of the fund. These statements provide a transparent overview of the fund's financial position, including income, expenses, assets, and liabilities. Rigorous preparation of these documents ensures data accuracy and compliance with all applicable financial reporting standards.

Conducting an audit is also a crucial element of accounting services in Hong Kong. Audit verification aids in guaranteeing the precision and entirety of fund financial statements. This is especially crucial for upholding investor assurance and adherence to regulatory obligations. Auditors evaluate fund financial procedures and control measures to confirm the dependability of financial reporting and portray the accurate financial status of the fund.


In the context of accounting services in Hong Kong, particular attention is also devoted to compliance with tax requirements. Funds must accurately compute and timely remit taxes, as well as provide corresponding tax filings. This encompasses the preparation and submission of documents to substantiate tax exemptions and reliefs applicable to the fund.

In general, accounting services in Hong Kong encompass a broad spectrum of tasks, ranging from financial report preparation to auditing and tax planning. This ensures compliance of investment funds with regulatory requirements and upholds their reputation as reliable and transparent financial instruments.

Information about lending and obligations

During the registration of an investment fund in Hong Kong, it is crucial to consider aspects related to financing and liabilities. These aspects encompass both the acquisition of credit facilities and the management of the fund's financial obligations.

When launching an investment fund in Hong Kong, a critical aspect involves defining the financing strategy. This may encompass securing debt capital to augment investment funds or utilizing credit instruments to expand investment opportunities. It is imperative that the financing process is meticulously planned, compliant with regulatory requirements, and considers the risks related with debt acquisition.

In addition to financing, the fund must clearly define and manage its financial obligations. This encompasses commitments to investors, partners, and other shareholders. Effective obligation management guarantees monetary stability of the fund and maintains investor confidence.

It is also important to consider that information on lending and obligations must be fully reflected in the fund's financial statements. This ensures transparency and compliance with financial standards, which is critically important for the long-term success and reputation of the fund.

Managing credit and liabilities entails a profound grasp of financial mechanisms and regulatory requirements, constituting an integral part of establishing an investment fund in Hong Kong.

Organizational and management aspects

The opening of an investment fund in Hong Kong begins with a crucial decision regarding the choice of its legal form, which directly influences management, tax strategy, and statutory adherence of the fund. Various legal forms are available in Hong Kong for investment funds, each with its own characteristics and requirements. The correct choice of the fund's legal form is pivotal to the success and long-term sustainability of its investment activities.

For example, one could opt for the structure of an open-end investment fund, offering asset management flexibility and attracting a broad range of investors. Such funds may be more appealing to retail investors and provide a relatively straightforward structure for comprehension. Conversely, limited partnership funds are often preferred for private investments, as they can offer greater confidentiality and reduced regulatory burden. This form also allows for flexible management of profit and loss distribution among partners.

The second key aspect in establishing an investment fund in Hong Kong is the appointment of directors and responsible officers. These persons are crucial in managing the fund and overseeing its governance, influencing its strategic course and ensuring adherence to legal and statutory standards. Directors carry the responsibility for shaping the fund's trajectory through decision-making and supervising risk control. Responsible officers, such as asset managers or trustees, oversee the fund's day-to-day operations, including investment management, regulatory adherence, and interactions with investors and regulators.

It is crucial that directors and responsible individuals possess appropriate experience, qualifications, and reputation. In Hong Kong, stringent requirements for fund directors exist, which include evidence of their professionalism, honesty, and ability to prudently assess and manage risks. This secures investor trust and ensures that the fund will be managed efficiently and following industry standards.

Establishing an investment fund in Hong Kong also necessitates consideration of numerous other factors, such as the fund's tax structure, investment strategy, and target audience. All these aspects must be meticulously deliberated and aligned.

Financial questions

Opening an account in Hong Kong for an investment fund is a crucial milestone that encompasses several key considerations and nuances. Hong Kong, as a premier monetary center, offers unique opportunities for financial management and international operations.

The procedure of opening an account in Hong Kong begins with selecting an appropriate bank capable of offering services and products that meet the needs of an investment fund. It is crucial to choose a bank with experience in fund management, capable of providing requisite support and services, and possessing a strong reputation and reliability.

One of the key features of opening an account in Hong Kong is the stringent adherence to AML/CFT regulations. Banks in Hong Kong meticulously scrutinize clients and their financial activities, which may entail providing detailed information about beneficiaries, fund sources, and investment undertakings. This necessitates thorough documentation preparation and potentially longer processing times for account opening applications.

When establishing a corporate bank account in Hong Kong, different banking terms are taken into account, such as the lack of a set minimum balance requirement. An initial deposit may be needed to initiate the account, usually approximately $130,000 or the corresponding amount in the selected currency, although this sum can differ based on the particular bank.

Banks in Hong Kong offer a variety of banking services, making them attractive to corporate clients. This can include options such as internet banking, multi-currency account management, and access to diverse investment products. These supplementary services can prove invaluable for efficient fund and asset management, enhancing business operational convenience.

In general, registering an account in Hong Kong for an investment fund requires meticulous planning and consideration of various factors, such as bank selection, compliance with regulatory requirements, and understanding of banking service terms. This process is crucial for ensuring effective financial management and access to international financial markets.

Tax policy and audit

Taxation of companies operating inside and outside Hong Kong

In 2024, the establishment of an investment fund in Hong Kong is intricately tied to specific tax considerations contingent upon the company's operational jurisdiction. Awareness of these taxation nuances is critically imperative for the successful registration of the fund.

The key consideration when establishing an investment fund in Hong Kong in 2024 is the application of the territory's territorial tax principle. This implies that taxes are levied only on earnings generated within Hong Kong. Profits generated by the fund outside Hong Kong typically do not attract taxation in this jurisdiction, providing a significant advantage for internationally active businesses.

If a financial investment fund operates in Hong Kong, all earnings generated from such operations are liable to taxation. The tax rate ranges from modest to moderate, with rates of 8.25% or 16.5%, depending on the level of profitability. Additionally, it's crucial to note that profits tax in Hong Kong is imposed exclusively on income derived from sources within the territory.

For ensuring tax efficiency and compliance with regulatory requirements, engaging qualified tax consultants in Hong Kong is highly recommended. Amid constantly evolving tax legislation and international standards of financial transparency, professional consultations can ensure investment fund registration meets all requirements and contributes to the fund's financial success.

Obtaining a Tax Exemption certificate

Accounting services in Hong Kong are crucial in the audit process and acquiring the Tax Exemption Certificate for investment funds. This certificate acts as a vital tool offering tax incentives to funds, indicating exemption from profit tax under specific conditions. Securing the Tax Exemption Certificate depends on the fund's adherence to a set of criteria and standards mandated by Hong Kong laws.

The basis for obtaining this certificate is conducting an audit, which must be performed by a qualified auditor. The audit involves a comprehensive analysis of the fund's financial statements, verification of the accuracy of accounting records, and compliance of financial operations with established standards. Accounting services in Hong Kong in 2024 should focus on ensuring the accuracy and completeness of financial information, necessary for the successful completion of the audit and obtaining the Tax Exemption certificate.

Obtaining a Tax Exemption Certificate allows an investment fund to reduce its tax burden significantly, thereby serving as a substantial stimulus for investment activities. However, to qualify for it, the fund must strictly adhere to criteria set by the Hong Kong tax authorities. These criteria may encompass the nature and scale of the fund's operations, sources of its income, and other aspects of its activities.

Thus, accounting services in Hong Kong are an integral part of the Tax Exemption certificate acquisition process. They ensure the fund's compliance with all required procedures and standards for a successful audit, while also optimizing the tax burden, thereby enhancing the efficiency and profitability of the investment fund.


In 2024, the process of registering an investment fund in Hong Kong is accompanied by both specific challenges and opportunities. Registration stages involve analyzing potential risks and complexities. Simultaneously, Hong Kong, as a dynamic financial environment, opens numerous prospects for investment funds.

In the context of risks, it is necessary to consider changes in Hong Kong's legislation, regulatory conditions, and tax policy. It is important to assess the complexities associated with compliance with international standards, transparency requirements, as well as potential issues in fund management and auditing. The impact of global economic trends on financial markets is also a significant aspect to consider.

However, Hong Kong offers investment funds a range of advantages, including a stable legal framework, an efficient business environment, and an attractive tax policy. The territorial tax system and access to Asian markets create favorable conditions for international investment and business expansion.

In conclusion, despite existing risks and the need for meticulous planning, registering an investment fund in Hong Kong in 2024 presents significant opportunities for development in a competitive and progressive economy. It is crucial to weigh all aspects and utilize professional support to minimize risks and maximize potential.

We offer comprehensive support at all stages of establishing an investment fund in Hong Kong, from consultations to preparation of necessary documents and negotiation with governmental bodies, ensuring full project oversight.

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