How can a business owner obtain Hong Kong residency?
Starting the journey to Hong Kong residency by registering a company opens the door to a myriad of opportunities. This article presents the process, requirements, and potential benefits. It leads entrepreneurs through the intricacies of obtaining a highly sought residency permit in this significant financial center.
Keep this guide handy for in the light of you’re ready to start the process, and you’ll be able to sail through while avoiding the most common challenges.
Benefits of getting Hong Kong residency through company registration
Given that Hong Kong’s status as an international business hub makes obtaining residency through company registration an attractive prospect. There are many social and personal benefits to moving to Hong Kong. It can all things considered make good business sense.
This approach presents a myriad of benefits for individuals seeking a foothold in this dynamic city, such as:
- Business Opportunities: Securing a Hong Kong residency permit through company registration opens doors to a wealth of business opportunities. Entrepreneurs can tap into the city’s vibrant and diverse markets that are refreshingly familiar with Western business practices.
- Global Connectivity: Hong Kong’s strategic location in Asia offers unparalleled connectivity to global markets. With a residency permit, individuals gain easier access to international business networks, facilitating collaborations and partnerships on a global scale.
- Quality of Life: Beyond business advantages, Hong Kong provides an exceptional quality of life. With a residency permit, individuals can enjoy world-class healthcare, education, and cultural amenities, making it an ideal location for professionals and their families.
- Tax Benefits: Hong Kong’s simple and low-tax regime is a significant draw. Residency through company registration enables individuals to leverage tax benefits, creating a conducive environment for wealth creation and preservation. Foreigners pay a maximum personal income tax of 17%, and the maximum corporate tax rate is only 16.5%.
- Stability and Rule of Law: Hong Kong boasts a robust legal system and political stability. Acquiring residency through a registered company adds an extra layer of security, ensuring individuals can confidently pursue their professional and personal endeavors.
Criteria for obtaining a residence permit
Securing residency in Hong Kong through company registration requires careful consideration of specific criteria. The Immigration Department assesses each application on its individual merits, emphasizing factors that contribute to the economic development and stability of the Hong Kong Special Administrative Region (HKSAR).
While open to most countries, this entry arrangement generally doesn’t apply to:
- Chinese residents of the Mainland of China (the Mainland)
- Nationals of Afghanistan, Cuba, and Korea (Democratic People’s Republic of).
- Security and criminal record
Applicants must have no security objections and a clean record of serious crime.
- Education and professional background
A first degree in the relevant field is typically required. In special circumstances, technical qualifications, proven professional abilities, and relevant experience supported by documentary evidence may be accepted.
- Business contribution
Applicants must demonstrate a substantial contribution to the HKSAR’s economy.
Consideration factors include a comprehensive business plan, business turnover, financial resources, investment sum, jobs created locally, and the introduction of new technology or skills.
3.1 Business plan
Submission of a two-year business plan outlining the nature of the business, market analysis, positioning, direction, sales targets, and product marketing strategy is required. A two-year forecast of the profit-and-loss account, cash flow statement, and balance sheet is essential for demonstrating business feasibility.
3.2 Financial documentation
Submission of personal and company bank account statements from the previous year.
Proof of other funding sources and the latest audited financial report for the company are necessary to prove financial stability.
3.3 Investment and job creation
Documentary proof of capital investment in Hong Kong is required.
Detailed organizational structure, the required number of staff, and the number and level of actual jobs created locally should be provided.
3.4 Introduction of new technology or skills
If applicable, applicants must explain how new technology or skills contribute to high-value-added industries in Hong Kong.
3.5 Start-up businesses
Applicants for start-up businesses may submit applications supported by government-backed programs with rigorous vetting processes.
- Overseas chinese nationals
Permanent residence overseas or residing overseas for at least one year is a prerequisite for overseas Chinese nationals. Entry is subject to normal immigration requirements and specific eligibility criteria.
- Dependents
Applicants admitted for investment can apply to bring in dependants under prevailing policies.
In sum genuine relationships, no detrimental records, and the ability to support dependants well above the subsistence level are key criteria.
Step-by-step guide for the process
Without any doubt obtaining Hong Kong residency through company registration involves a structured process that requires careful attention to detail.
Here’s a step-by-step guide to navigate through the application procedure:
- Application forms
Complete application forms ID 999A (for applicants) and ID 999B (for sponsors). Obtain these forms free of charge from Immigration Department offices, overseas Chinese diplomatic missions, or HKSAR Government offices outside Hong Kong.
You can find all the necessary forms online here.
- Nominate a local sponsor
It can be either a company or an individual. If an individual, the sponsor must be 18 or above, a bona fide Hong Kong resident, and acquainted with the applicant.
- Prepare supporting documents
Gather necessary documents, including a recent photograph, valid travel document, Hong Kong identity card (if any), academic qualifications, proof of financial standing, company-related documents, and a detailed two-year investment plan.
- Online submission or other means
Submit completed forms and supporting documents online through the Immigration Department’s website or by mail to the Receipt and Despatch Sub-Unit at Immigration Tower, Hong Kong. Overseas applicants can submit documents to the nearest Chinese diplomatic mission.
- Processing time
The Immigration Department typically takes four weeks to process a visa/entry permit application for investment upon receipt of all required documents. Applications are processed at the discretion of the Director of Immigration.
- Payment of fees
Upon approval, payment of relevant fees is required. Payment can be made online through provided links using credit cards, Payment by Phone Service (PPS), or Faster Payment System (FPS). Alternatively, fees can be settled in person using cash, EPS, Octopus, FPS, or cheque.
- Visa issuance
When fees are paid, applicants can download or print the “e-Visa” instantly. For applications submitted to Chinese diplomatic missions, fees are paid directly to the mission.
Required documents
As a matter of fact that many documents will be required of you to successfully apply for this permanent residency visa. In this situation important that you’re meticulous about completing and filing the necessary documentation to make the process go smoothly.
Here, we’ll provide a full list of the documents needed, along with any caveats you should know. However, you can also refer to the official website for more information about specific documents.
- Application for entry (ID 999A): Complete form ID 999A, available from Immigration Department offices or online.
- Photograph: Provide a recent photograph affixed to page 2 of ID 999A.
- Valid travel document: Submit a photocopy containing personal particulars, issue date, expiry date, and re-entry visa details if applicable.
- Hong Kong identity card: Include a photocopy if applicable.
- Academic qualifications and work experience: Photocopies of proof of academic qualifications and relevant work experience.
- Financial standing: Provide proof such as bank statements and company financial reports.
- Employment contract or appointment letter: Include details about the post, salary, benefits, and employment periods if applicable.
- Two-year investment plan: Detailed plan covering business activities, investment amount, local job creation, and office/showroom/warehouse setup.
- Proof of company’s business activities: Include contracts, invoices, or proof of business deals under negotiation if applicable.
- Company background documents: Provide details about business activities, mode of operation, product ranges, and membership of chamber of commerce if applicable.
- Tenancy agreements/office setup documents: Photocopies of tenancy agreements or supporting documents for office setup.
- Mandatory provident fund scheme records: Include records of monthly contributions if applicable.
- Business registration certificate: Photocopy of the certificate and registration particulars.
- Documents filed with companies registry: Include Certificate of Incorporation, latest annual return, Memorandum of Association, and Articles of Association.
- Licenses or certificates: Submit relevant licenses for business operations if applicable.
- Letter of support by a government-backed programme: If establishing or joining a start-up through a supported program.
- Macao identity card or household registration in taiwan: For residents of Macao or Taiwan, include photocopies.
- Dependant documents: For dependants, include their application forms, photographs, valid travel documents, and proof of relationship.
Common pitfalls to avoid
Compared with many other countries around the world, obtaining permanent residency in Hong Kong through company registration is relatively straightforward. The key is to make sure that you follow the process and prepare your documents diligently.
Here are some common mistakes you should be aware of to avoid wasting time and improve your chance of success:
- Submit all required documents accurately.
- Avoid providing inaccurate information.
- Present a realistic two-year business plan.
- Demonstrate financial stability clearly.
- Stay informed about eligibility criteria.
- Use certified translators for non-English/Chinese documents.
- Avoid delays by submitting documents on time.
- Nominate a sponsor meeting residency criteria.
- Ensure accurate submission of dependant documents.
- Be aware of changes in government policies.
Must be remembered that applicants can check their application status online or through the 24-hour telephone inquiry system at (852) 3160 8663 after the acknowledgment of their application. It’s also essential to ensure all documents are in either Chinese or English. If not, provide certified translations.
Furthermore, making false statements or representations is an offense. And the authorities may even conduct field visits for verification.
So far successfully navigating the Hong Kong residency process demands you do your due diligence.
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