Hong Kong Fact-File Part 1:
Business Formation for Individuals
1.5 Hong Kong Foreigners in Business
Limitations on foreigners in business
There are no limitations on foreigners in business as such,
and a sole proprietor does not need to be a resident; they
can engage a resident agent to act on their behalf. However,
the practicalities of having a sole proprietorship, however,
could mean that a non-resident would struggle to run such
an enterprise.
A more realistic option would be to take advantage of the
Hong Kong governments’ keenness to attract investment and
skilled professionals. ‘Entry for investment’ visas are available
to individuals wishing to start their own business or join
an established business and who meet certain criteria, for
example, applications will be considered favourably for individuals
who:
· Do not have a criminal record
· Are well educated, ie with a first degree in a field relevant
to the chosen field of business, or professional experience
which is supported by documentary evidence
· Can make a substantial contribution to the Hong Kong economy
The rules for Chinese Mainland residents are somewhat different
and nationals from Afghanistan, Albania, Cambodia, Cuba, Laos,
North Korea, Nepal and Vietnam are currently excluded from
applying for an investment visa.
If the individual wishes to set up his/her own business, an
application for entry for investment must be supported by
a two-year business plan and proof of financial acumen. The
capital available to the individual must cover start-up and
running costs for a minimum of six months, and applicants
must have a sponsor in Hong Kong, which can be a corporate
body or an individual. Application forms for entry for investment
can be downloaded from the Immigration Department website
at: www.immd.gov.hk
; the applicant must submit form ID999A, whilst the sponsor
should submit form ID999B. Applications normally take around
four weeks to process.
The applicants’ spouse and any children under 18 years of
age can be included in the application, although the applicant
must be able to prove they can support themselves and their
family. Applicants may either submit their application together
with all supporting documents (listed here: http://www.immd.gov.hk/ehtml/id1000.htm#IX
) directly by post or through their local sponsor to: Receipt
and Despatch Unit, Hong Kong Immigration Department, 2/F Immigration
Tower, 7 Gloucester Road, Wan Chai, Hong Kong. Individuals
living overseas may submit their application in person to
the nearest Chinese diplomatic and consular mission in their
country of residence.
Extensions may be granted to the initial entry for investment
visas (usually following the 2-2-3 year format), provided
that the eligibility criteria are still fulfilled. Once residence
has been maintained for at least 7 years, an application (see:
http://www.immd.gov.hk/ehtml/right_1.htm
for the required forms and supporting documents for permanent
residence can be submitted, if desired. A Permanent Identity
Card (PIC) will be granted, if the application is successful.
Many nationals do not require a visa for visits to Hong Kong.
Durations of permissible stay without a visa range from 14-180
days, depending on the country of origin.
Nationals from the following countries require a visa for
any length of stay: Afghanistan, Albania, Angola, Armenia,
Azerbeijan, Bangladesh, Belarus, Burundi, Cambodia, Cameroon,
Democratic Republic of Congo and the Republic of Congo, Cote
d’Ivoire, Cuba, Eritrea, Ethiopia, Georgia, Ghana, Grenada,
Iran, Iraq, Kazakhstan, North Korea, Kyrgystan, Laos, Lebanon,
Liberia, Libya, Moldova, Montenegro, Myanmar, Nepal, Nicaragua,
Nigeria, Pakistan, Palestine, Panama, Senegal, Serbia, Sierra
Leone, Solomon Islands, Somalia, Sri Lanka, Sudan, Syria,
Tajikistan, Togo, Turkmenistan, Ukraine, Uzbekistan, Vietnam.
British passport holders may enter the territory without a
visa and stay for up to 180 days. During that period, individuals
may elect to set up and register a business or pursue business
opportunities.
Other types of visa can include visit visas, employment visas
(in this case, the applicant must have a job with a sponsoring
company, which must be able to demonstrate that there are
no suitably-skilled local workers able to fill the position),
capital investment visas (where applicants can demonstrate
assets in excess of HKD6.5mn for the two years prior to their
application), freelance visas (which should be sponsored by
the organisation with which the freelancer is contracted,
dependant visas (for the spouses of applicants and children
under the age of 18), and student visas.
In terms of non-residents seeking to establish operations
in Hong Kong, business registration providers can register
a partnership, general or limited, on behalf of a client.
As with sole proprietors, partners in a business must apply
for an investment visa once the business has been registered
if they wish to run their business themselves.
Limited liability companies can also be bought ‘off the shelf’
from various company formation services who will also provide
company secretary services, business addresses and nominee
directors and shareholder(s). Shelf companies are usually
sold with an authorised share capital of HKD10,000 divided
into 10,000 shares of HKD1.00 each. Share capital may be increased
after purchase and the business name changed to the new owners’
preference; provided that the name chosen is not already registered.
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