Hong Kong is one of the world’s leading financial centers, attracting entrepreneurs from around the globe due to its favorable tax regime and strategic location. For businesspeople looking to enter international markets and leverage all the advantages of Hong Kong, obtaining a residence permit becomes a key step.
This article outlines the process of obtaining a residence permit for entrepreneurs, including the main stages, requirements, and useful tips to increase the chances of successful application approval.
What you will learn from this guide:
- What visas are available for entrepreneurs in Hong Kong.
- How to register a company and obtain all necessary documents.
- How to properly prepare a business plan for a successful application.
- How to ensure your business complies with local legal standards.
- Features of visa renewal and obtaining permanent residency.
Legal Aspects of Obtaining a Residence Permit in Hong Kong for Entrepreneurs
In this context, a residence permit refers to a visa obtained based on conducting business in Hong Kong on behalf of a company or investing in a business where the applicant is the main shareholder or partner (Investor visa, entrepreneur visa, or business visa).
The issuance of visas for entrepreneurs (investors) is regulated by the Hong Kong Immigration Department under the General Employment Policy (GEP). The program aims to attract skilled foreign professionals and entrepreneurs capable of contributing to the region’s economic development.
Benefits of an Entrepreneur Visa in Hong Kong
It’s worth noting that a visa is not required for conducting business in Hong Kong. Both shareholders and directors of a company can be non-residents without any requirements for permits or visas. However, when an entrepreneur wants to reside permanently in Hong Kong, conduct business, and work fully in the special administrative region, an appropriate visa is required.
Holders of an investor (entrepreneur) visa have the right to legally reside, conduct business, and work in Hong Kong, allowing them to actively develop their business and fully leverage the advantages of localization and the local market. The visa provides the following additional benefits:
- Opening a personal current account in Hong Kong banks. Entrepreneurs with a residence permit and residence in Hong Kong can easily open a personal account in one of the local banks. This simplifies receiving dividends and salaries.
- Opening a company account in a Hong Kong bank. A company with a foreign shareholder legally residing in Hong Kong has a significantly better chance of opening an account in a local bank. Although business details are carefully reviewed, such a business disposition is more advantageous.
- Residing in Hong Kong without the need to leave. The investor visa allows entrepreneurs to reside permanently in Hong Kong without requiring regular departures, ensuring stability and comfort.
- Flexibility in residence. The absence of a requirement for permanent residence in Hong Kong to maintain the visa provides freedom of choice, allowing the visa to be retained without being tied to a location.
- Possibility to establish not only companies but also open a sole proprietorship.
- The main visa applicant can bring their spouse and unmarried children (under 18 years old) to Hong Kong.
- After successfully residing in Hong Kong for 7 years, you may be eligible to apply for Hong Kong citizenship.
Hong Kong is rightly called the “gateway to Asia.” This city-state offers unique business opportunities due to the following factors:
- Low taxes. Hong Kong has one of the lowest profit tax rates (16.5%) and no capital gains tax. For small businesses with profits up to 2 million HKD, the rate is 8.25%. If the source of profit is outside Hong Kong, such profit is not taxed.
- Ease of doing business. Company registration takes only a few days, and the legal system protects the interests of foreign investors. All that is required is to meet basic requirements for filing forms and reports and conducting audits.
- International connections. Hong Kong is an international trade and financial center with direct access to the Chinese market and other regions of Asia.
Requirements for Obtaining an Investor Visa in Hong Kong
To apply for an investor visa, certain conditions must be met. The Hong Kong Immigration Department pays special attention to how your business can contribute to the region’s economic development. This includes creating jobs for locals, actively collaborating with local companies, and promoting Hong Kong as an innovative and technological hub. Your contribution can become an important part of Hong Kong’s economic growth, opening new opportunities and prospects in this dynamic region.
An application for an investor visa in the Hong Kong Special Administrative Region can be approved if the following conditions are met:
- Existing company. Typically, this is an already active business. However, under certain conditions, a startup may also be considered.
- No legal issues. The applicant has no criminal record and is not associated with any serious crimes. There are no security concerns for Hong Kong.
- Education and experience. The applicant should have a good education, usually a higher education in a relevant field. In special cases, good technical qualifications, proven professional abilities, and/or relevant experience and achievements documented may be accepted.
- Contribution to Hong Kong’s economy. The applicant must be able to make a significant contribution to Hong Kong’s economy. This is assessed based on the following criteria:
- Business plan. The applicant must provide a two-year business plan describing the nature of the business, market analysis, positioning, sales goals, and marketing strategy. Financial statement forecasts must also be presented to demonstrate the business’s viability.
- Business turnover. If the applicant already conducts business abroad or in Hong Kong, financial statements for the previous year must be provided. For new businesses, a two-year forecast is required to show potential turnover and development.
- Financial resources. The applicant must provide statements from personal and company accounts, as well as other evidence of financial stability, to confirm sufficient resources for conducting business.
- Investment amount. The investment amount in Hong Kong must be documented to show it is sufficient to support the business.
- Job creation. The applicant must describe the business’s organizational structure and indicate the number and level of jobs created locally.
- Introduction of new technologies or skills. If applicable, the applicant must explain how new technologies or skills will contribute to the development of high-value-added industries in Hong Kong and support its long-term development as a knowledge-based economy.
The main visa applicant can bring a spouse and unmarried children (under 18 years old) to Hong Kong.
Step-by-Step Process for Applying for an Investor Visa
Step 1: Company Registration
To apply for a visa, you must register a company in Hong Kong. The registration process usually takes a few days. However, to increase the chances of successful consideration, it is important for the company to start active operations. The more stable and successful the company’s business model, the higher the likelihood of a positive visa decision.
Step 2: Business Plan Preparation
To apply for an investor visa, the entrepreneur must provide a detailed two-year business plan. This document should demonstrate the financial viability and development strategy of the business in Hong Kong.
The more detailed and realistic your business plan the higher the chances of successful application consideration. Support it with evidence and artifacts to convince of the viability and prospects of your business.
Step 3: Document Collection for Submission
To apply for a business visa, the entrepreneur must provide the following set of documents:
Required documents from the applicant:
- Completed form ID999A.
- Applicant’s photograph.
- Valid identification, including pages of visited countries.
- Copies of diplomas, professional activity documents (proof of education and experience).
- Police clearance certificate
- Bank statements to demonstrate financial stability.
- Documents on business investments.
- Employment contract with a company in Hong Kong and appointment decision (if applicable).
Required documents from the company:
- Business registration certificate.
- Licenses, business operation certificates.
- Employment contract between the company and the applicant (if applicable).
- Latest audited financial statements.
- Business plan with financial forecasts, profit and loss statement.
- Evidence of commercial activity: copies of contracts, invoices.
- Company presentation: commercial activity, history, product range, and markets.
- Evidence of hiring local employees (e.g., Mandatory Provident Fund contribution data).
- Company organizational structure.
If sponsors are involved in obtaining the residence permit, their documents are also required.
Sponsor – Individual:
- Copy of HK ID.
- Copy of Hong Kong citizen’s passport.
- Completed Form ID999B.
Sponsor – Legal Entity:
- Completed form ID999B.
- Business registration certificate.
- Audited financial statements and tax return.
Documents for family members:
- Section B of form ID999A (completed by dependents).
- Recent photographs of dependents.
- Valid identification of dependents.
- Proof of family relationships (marriage certificate, birth certificates).
Step 4: Submission and Review of the Application
The application process begins with submitting all necessary documents to the Hong Kong Immigration Department. After submission, the review stage begins, which typically takes 4 to 6 weeks. During this time, department specialists thoroughly examine the provided materials, assessing the applicant’s compliance with established requirements.
In some cases, the department may request additional documents or information for a more detailed analysis. This may include clarifications on the business plan, financial forecasts, or other aspects of the company’s activities. A quick and accurate response to such requests can expedite the review process and increase the chances of successfully obtaining the visa.
Step 5: Obtaining the Visa
After successful application review, the entrepreneur receives a business visa, granting the right to reside and conduct business in Hong Kong. Initially, the visa is issued for up to one year, with the possibility of renewal upon meeting all conditions and successful company operations. This opens opportunities for further business development and strengthening market positions in Hong Kong.
Visa for Family Members
The Hong Kong investment visa provides entrepreneurs with the opportunity to bring their family, which is an important advantage for those planning long-term activities and wanting to ensure comfortable living for their loved ones.
Documents for Obtaining a Visa for Family Members
Applicants for dependent visas (spouses and children) must provide the following documents:
- Section B of form ID999A. Completed part of the form concerning family members.
- Recent photographs of dependents. Recent photos that meet the requirements for visa documents.
- Valid identification of dependents. Passport or other official identification documents.
- Proof of family relationships. Marriage and birth certificates confirming kinship with the main applicant.
These documents will help confirm the family members’ right to obtain a visa and reside in Hong Kong with the entrepreneur.
The application for a family member visa is submitted together with the main business visa application. The entire process may take up to 4-6 weeks.
Who is a Sponsor?
If the business is already established, partners often act as sponsors for the visa application. However, if the business is new and its shareholders and directors are not permanent residents of Hong Kong, there is a need to choose an appropriate sponsor.
Entrepreneur Visa Sponsorship
Who can be a sponsor?
An ideal sponsor is a holder of a permanent Hong Kong identity card, having business or personal connections with the applicant and interested in the success of the business.
Professional Sponsorship
Consulting companies may offer their services as sponsors for a fee, providing professional support and expertise.
Risks and Responsibility
Sponsoring an entrepreneur visa carries certain risks for the sponsor, as they are responsible for potential repatriation expenses of the applicant. If you do not have close connections in Hong Kong, consider seeking professional assistance to address sponsorship issues, minimizing risks and ensuring successful visa acquisition.
Visa Renewal and Obtaining Permanent Residency
The visa in Hong Kong is initially issued for one year. After its expiration, entrepreneurs can apply for a visa renewal. Renewal is possible for 2-3 years if your business continues to operate actively and you meet all immigration service requirements.
How to Renew the Visa:
1. Provide Financial Statements
– Prepare detailed financial reports for the past period, demonstrating business stability and growth. The reports should have a positive auditor’s opinion.
2. Confirm Business Success
– Prove that the business generates income and creates jobs by providing relevant documents and statistics.
3. Timely Application Submission
– Submit the renewal application several months before the current visa expires to avoid interruptions in your legal status.
After 7 years of residing in Hong Kong, you can apply for permanent residency.
Frequently Asked Questions (FAQ)
Citizens of about 170 countries can visit Hong Kong visa-free for a period ranging from 7 to 180 days. For more detailed information on visa requirements, visit the “Hong Kong Visa Requirements” webpage.
Non-residents can establish a business and hold a director position in a company without needing a visa.
If an entrepreneur plans to live and work in Hong Kong, they will need an appropriate visa. This visa allows staying in the country longer than a visa-free visit and engaging in activities not permitted under tourist status.
The processing time usually takes 4 to 6 weeks, depending on the completeness of the provided documents and the workload of the immigration service.
Yes, family members (spouses and minor children) can obtain visas to reside in Hong Kong. Documents proving family relationships must be provided.
To renew the visa, you must prove that your business continues to operate and benefit Hong Kong’s economy. Submit the renewal application several months before the current visa expires.
After 7 years of continuous residence in Hong Kong, you can apply for permanent residency if your business continues to operate actively and you meet all requirements.