HONG KONG INVESTMENT VISA
IMMIGRATION | EMPLOYMENT | INVESTMENT | RELOCATION
Invest and Self Manage a Company In Hong Kong In Order To Migrate To Hong Kong
Hong Kong may immediately move to the top of your list if you’re looking to invest or conduct business internationally. It consistently ranks well in lists of the greatest economies for business because it provides the benefits of free trade, exceptional market access, and a skilled workforce.
You will need comprehensive information about the advantages of doing business in Hong Kong before making an investment or starting a firm here.
Benefits of Investing or Doing a Business in Hong Kong
For the majority of the last ten years, the growth rate of the economy in Hong Kong has generally ranged between 2 and 6 percent annually. Hong Kong’s economy has been ranked as the seventh most competitive in the world and the second most competitive in Asia by the International Institute for Management Development in Switzerland.
We’ll go into more depth about the remarkable business independence that Hong Kong’s economy provides below. The well-known freedoms of commerce, markets, and enterprise in Hong Kong offer several chances for corporate expansion and financial success.
Due to Hong Kong’s strategic location on China’s southeast coast, businesses have easy access to a number of large Asian markets, notably the enormous mainland Chinese market. Most of China’s major cities can be reached by business travelers in a single day, and getting to Beijing through the high-speed trains running between Beijing and Hong Kong is extremely handy.
Additionally, Hong Kong offers easy access to markets in nations like Singapore, Thailand, Japan, Russia, and India. Businesses based in Hong Kong can benefit from advantageous trade agreements with these nations to expand their global business networks and increase revenues.
The workforce in Hong Kong is generally highly educated, trained, and skilled. The workforce in Hong Kong is multilingual. Mandarin, which is the most frequently spoken language in mainland China, as well as Cantonese, the native tongue of mainland China’s southeast, are spoken by many people in Hong Kong. The most popular language for conducting business is English. Hong Kong is a great area to discover outstanding bilingual or trilingual personnel if your organization needs linguistic proficiency in its workforce.
For businesses operating within its borders, Hong Kong provides preferential trade access.
For instance, the Closer Economic Partnership Agreement (CEPA) establishes a trade agreement between mainland China and Hong Kong. This partnership offers a number of unique advantages. All products that meet the criteria for being from Hong Kong can enter the mainland of China duty-free. In addition, in dozens of different businesses, service providers based in Hong Kong are given preference when offering their services to the mainland.
Additionally, Hong Kong and the Association of Southeast Asian Nations have a significant free trade agreement (ASEAN). Trade in products and services, investments, economic cooperation, and settlement of disputes are all covered under this trade agreement and associated investment agreements, which were signed in September 2017. They let Hong Kong and the 10 ASEAN members to trade fairly and with greater access to the market:
Hong Kong also has a strong and stable banking system in addition to its robust economy. International businesses can trust local banks with their money and feel secure about their security.
Hong Kong also has sizable foreign exchange reserves. These are necessary for preserving steady exchange rates, repaying foreign debt, and generally preserving public confidence in the economy. These elements support Hong Kong’s exceptionally business-friendly environment.
Your business can anticipate operating with a low risk of crime and corruption because to the nation’s robust, transparent legal system and strict anti-corruption measures. If there are any legal issues, the judicial system will treat you fairly.
Companies can frequently start and operate their operations in Hong Kong for less money than they would in other nations.
Due to the incredibly low tax rates in Hong Kong, paying taxes is frequently easier. For example, taxes in Hong Kong are significantly lower than in the USA. Profit tax starts from 8.25% and Individual tax starts from 2%.
In addition, Hong Kong has comparatively simple and affordable rules and requirements for forming a company, unlike many other nations where they can be complicated and expensive.
Getting Hong Kong Investment Visa
An investment visa or entrepreneur visa application is a subcategory of a work visa application, designed for those business owners or entrepreneurs who intend to stay in Hong Kong to actively participate in daily business operations.
In order to obtain an investment visa, an individual should prove the following:
1. You are a sole or majority shareholder of the Hong Kong company. To distinguish an investment visa application (i.e. entrepreneur visa application) from a work visa application, one should be a majority shareholder of the company and should contribute significantly in a business sense. Otherwise a work visa application would be more appropriate.
2. Your business in Hong Kong will enhance the local HK economy.
Immigration Department will focus on the following criteria:
1. Local hiring;
2. Having an office premise;
3. Having actual or/and potential business transactions in the Hong Kong company;
4. Having sufficient fund;
5. The applicant must be free of criminal records.
There is no minimum capital injection required by the HK Immigration Department for an individual to invest in a business in order to obtain an investment visa. However, applicants should show that they have sufficient funds to support themselves and the business in Hong Kong. Thus, sound financial statements are one of the supporting criteria required by the Hong Kong Immigration Department.
Which countries are not eligible to apply for an Investment/ Entrepreneur Visa?
The Investment/Entrepreneur Visa is not eligible to countries including Chinese residents of Mainland China, Afghanistan, Cuba, Laos, North Korea (i.e. Democratic People’s Republic of), Nepal, and Vietnam.
However, overseas Chinese nationals who are living overseas, holds People’s Republic of China passports, have met all the other criteria (mentioned in this article), and have met the normal immigration requirements are eligible to apply for Hong Kong investment visa, if:
1. The applicant possesses a permanent residence overseas, or
2. The applicant has been residing overseas for at least one year immediately before the application submission.
The definition of overseas refers to locations outside the Mainland China, Hong Kong, and Macao.
In this case, the application must be submitted from overseas.
What are considered eligible to contribute to Hong Kong’s Economy?
When a foreign professional is capable to make substantial contribution to Hong Kong’s economy, this foreign person may be favourably considered a candidate for the investment/entrepreneur visa. The actual potential contribution can be evaluated through a business plan, business turnover, financial resources, investment sum, number of jobs created locally for HK residents, and the introduction of new technology or skills.
Business Plan: An applicant who is to join in business or establish a new business in Hong Kong must submit a two-year business plan. In the business plan, it should inform the nature of the business, market analysis, market positioning, business direction, sales targets, product marketing strategy, or more.
The applicant must also submit a two-year forecast of the profit-and-loss account statement, cash flow statement and balance sheet. This information is to demonstrate that the business is suitable for and capable of developing in Hong Kong.
The HK Immigration Department may consider whether the applicant’s business belongs to or is able to complement industries that Hong Kong usually gets considerable advantages. These industries include the four traditional pillar industries i.e. trading and logistics, tourism, financial services, and professional and producer services. The industries may also be the four clusters of sectors i.e. transportation, convention and exhibition industries and tourism, manufacturing industries, innovative technology and cultural and creative industries, and professional services.
- An Investment Visa application form ID(E) 999A with the applicant’s signatures
- An Investment Visa application form ID(E) 999B with the the company’s authorized person signatures;
- Copy of the applicant’s passport;
- Copy of the applicant’s personal documents;
- The company detailed business plan;
- Copies of the company’s business incorporation documents;
- Copies of the financial documents of both the applicant and the company.
- The visa application process normally takes 4 to 8 weeks from the date of submission.
- The initial visa once obtained is valid for a maximum of 24 months (sometimes less).
- Once the Investment visa application has been approved, the applicant is eligible to apply for a Hong Kong Identity Card.
- If the company is newly established, when first visa is granted, it is common that the visa will be under the condition of ‘under business review’. It means that when the applicant applies for an extension for the investment visa, immigration department will review the company’s business and financial abilities before approving the extension of stay for the applicant.