Hong Kong’s easier redomiciling policy ‘attracts 150 inquiries from companies’

Treasury minister hails ‘very positive’ response after new law makes it easier for companies to transfer legal domicile status to city.

Authorities have received around 150 inquiries from companies about transferring their legal domicile status to Hong Kong after the recent passage of a law making it easier for businesses to establish themselves in the city.

Secretary for Financial Services and the Treasury Christopher Hui Ching-yu also said on Saturday that about 180 family offices had been set up or had expanded their operations in Hong Kong this year, putting the city on track to surpass its year-end goal of 200.

“Since the enactment of the relevant company re-domiciliation regime legislation on May 23, we have had a very positive response from the market, with inquiries about how [businesses] can do that and the detailed procedures,” he said.

“So far, in terms of inquiries, we have received about 150 of them, and in terms of downloads of the relevant information from our website regarding this new regime, the number is close to 10,000.

“So, I think all these are very positive in terms of how we have been drawing more companies to redomicile in Hong Kong.”

Manulife (International), the city’s biggest pension provider, said on Friday that it planned to redomicile to Hong Kong from Bermuda in November, after rival AXA announced a similar decision soon after the legislation’s passage.

Hui said that while the redomicile regime was for all eligible companies, insurance firms were particularly interested because of the large volume of business in Asia.

“Due to our connection with different places, we’ve become a place with a dense insurance business,” he said.

“It’d be natural for them to redomicile to Hong Kong, and not just that, but also to have the focus of their business in Hong Kong.”

Hui said that the city had a substantial network of professional services such as legal, accounting and secretarial solutions, providing a very comprehensive foundation for company governance that served as a strong pull factor for businesses considering redomiciling in the city.

Another pull factor was the strength of a market built upon the “one country, two systems” governing principle that placed Hong Kong in a favourable position among businesses from mainland China and overseas, he said.

Hui also said the city’s stability and its goal of becoming a global philanthropy hub served as a draw for family offices, as they could integrate charitable interests into their wealth management strategies to drive social change.

“[Chief Executive John Lee Ka-chiu’s] task for us was to secure 200 family office establishments or expansions by the end of the year. Now, we’ve got about 180, and we’re confident that we’ll exceed the target with 20 in the next half a year,” he said.

He also said that nearly 1,400 applications had been approved under the city’s New Capital Investment Entrant Scheme.

The residency scheme requires applicants to invest a minimum of HK$30 million (US$3.82 million) in permissible investment assets, with the policy expected to bring in more than HK$30 billion to Hong Kong.