Hong Kong was ranked 1st by the Heritage Foundation’s 2019 Index of Economic Freedom, making it the is the world’s freest economy. Hong Kong is also a major international financial center, with a large representation of banks, insurance companies, merchant banks, fund managers, venture capital companies, and other financial intermediaries. It has a world-class infrastructure and an excellent communications system.

Hong Kong companies are ideal vehicles for international trading or consulting activities that do not have links in Hong Kong. These businesses can therefore be conducted free of tax. The same is true for companies that hold real estate that is located outside Hong Kong. There is no capital gains tax, and dividends received or distributed by a Hong Kong company are also tax-free. Even the standard rate of profits tax applicable to Hong-Kong-sourced income is very competitive, at 16.5%.

In September 2003, the Immigration Department of the Government of Hong Kong Special Administrative Region (HKSAR) of the People’s Republic of China introduced the Capital Investment Entrant Scheme. Prior to the introduction of the scheme, individuals seeking residence in return for investment in the HKSAR had to rely on a subset of the employment visa, known as the Employment Visa Based upon Investment in Hong Kong (the business investment visa).

Residency program options:

The Capital Investment Entrant Scheme was officially suspended on 15 January 2015. However, there are other alternatives for individuals who wish to apply for Hong Kong residence. These are:

• The Quality Migrant Admission Scheme, which aims to attract highly skilled or talented persons who will settle in Hong Kong in order to enhance its economy.
• The General Employment Policy, which sets out the entry requirements for persons who wish to enter or stay in the HKSAR for professional employment.

Investment as Entrepreneurs, which is for persons who wish to enter or stay in the HKSAR in exchange for establishing or joining in business as entrepreneurs under the General Employment Policy.