Incentives for Doing Business in Hong Kong

Capital Investment Entrant Scheme (CIES)

Under this scheme, permissible assets will include equities listed in Hong Kong, debts issued by companies listed in Hong Kong, subordinated debts issued by authorized institutions, and eligible collective investment schemes. Approved applicants can reside and pursue development in Hong Kong with their spouse and dependent unmarried children.

Tax concessions

Profits tax exemption will be provided to family-owned investment holding vehicles (FIHVs) managed by single-family offices in Hong Kong. The government will also review the preferential tax regimes for funds and carried interest.

Market facilitation measures

These include the licensing requirements of the Securities and Futures Commission (SFC), particularly those catering to family offices. The regulatory body has established a dedicated communication channel maintained by its licensing team for family office-related inquiries.

The Hong Kong Academy for Wealth Legacy

The government will fund the setup of a new academy under the Financial Services Development Council, offering talent development services to industry practitioners and next-generation wealth owners.

Art storage facilities at the airport

The Hong Kong Airport Authority is actively exploring storage establishment, display, and appreciation facilities for art and treasures at Hong Kong International Airport as part and parcel of the Airport City development. It will enable global family offices with capital allocation in art to benefit from the thriving art ecosystem in Hong Kong.

Hong Kong as a philanthropic center

Enhance the processing of applications for recognition of the tax exemption status of charities. The Inland Revenue Department (IRD) will devise a standard form to facilitate the submission of applications and streamline processing. The IRD will also provide further guidance for applicants to facilitate precise statements of charitable objects. For tax exemptions offered to FIHVs managed by single-family offices in Hong Kong, enhance the legislative proposal by expanding the extent of beneficial interests that a charity may hold in an FIHV.

A dedicated FamilyOfficeHK team in InvestHK

The dedicated FamilyOfficeHK team will expand its role to cover services like facilitating philanthropic endeavors of wealth owners and assisting in education-related matters.

A new Network of Family Office Service Providers      

The FamilyOfficeHK team will convene and launch a new network of family office service providers, providing a two-way channel between the government and the industry to communicate on the latest policy developments.

Source: The Government of the Hong Kong Special Administrative Region website.

• Industry-oriented applied R&D platform projects with potential for commercialization; and
• Exploratory and forward-looking seed projects.

• Up to HK$2.8 million (US$358,487) for R&D centers; up to HK$$1.4 million (US$179,244) for other applicants.
• Maximum 24 months project duration for platform projects and 18 months for seed projects.

• Lead applicant: R&D center or designated local public research institute.
• A minimum of 10% industry sponsorship is required for platform projects.

• Platform and collaborative R&D projects with Mainland and Hong Kong cooperation.
• Specific project themes eligible for application are released each year (in 2023, they were biotechnology, artificial intelligence, and new materials).

• Up to HK$8,000 (US$1,024) for projects costing less than HK$1 million (US$128,031);
• Up to HK$14,000 (US$1,792) for projects costing between HK$1 million and HK$5 million (US$640,156); and
• Up to HK$20,000 (US$2561) for projects costing more than HK$5 million (US$640,155).

Maximum 24 months project duration.

• Lead applicant: R&D center or designated local public research institute.
• Co-applicant for collaborative projects: A company incorporated in Hong Kong, an industry support organization, a trade and industry association, or a professional body with the legal capacity to enter into contracts.
• A minimum of 10% industry sponsorship is required for platform projects; while a minimum of 50% is required for collaborative projects.

Maximum 24 months project duration.

• Companies incorporated in Hong Kong (must have a current business registration certificate)
• Cannot be a government-subvented organization or a subsidiary thereof.

• ITF projects: R&D projects funded by the ITF; and
• Partnership projects: R&D projects funded entirely by local enterprises and conducted in partnership with designated local public research institutes.

For Partnership projects, the following types of work or activities are ineligible:

• Product enhancement, customization, and related work, conventional operation, and/or business activities without scientific research content;
• Local enterprises’ in-house R&D work; and
• Research projects outside the science and technology fields

• Companies incorporated in Hong Kong.
• Cannot be a government-subvented organization or a subsidiary thereof.

• Funding is provided on a 3:1 government-to-company matching basis.
• Cumulative funding ceiling of HK$600,000 (US$76,819) per company.
• Each company can apply for funding for up to 6 projects.
• Projects should generally be completed within 12 months.

• Non-listed companies registered or incorporated and registered in Hong Kong, with substantive business operations.
• Cannot be a government-subvented organization or a subsidiary thereof.

• Subsidizing manufacturers to set up new smart production lines in Hong Kong.
• All or a significant portion of the production line for which the company is applying for funding should fulfill the “smart manufacturing” criteria.
• Funding covers expenses directly related to the establishment of the new production line in Hong Kong.

• Funding is provided on a 1:2 government-to-company matching basis.
• Funding ceiling of one-third of the total approved project cost, up to HK$15 million (US$1.92 million) per project.
• Normally a maximum of 24 months project duration.

• Funding of up to 50% of the actual cost of the original R&D project; and up to 100% for projects initiated by R&D centers.
• Maximum 24 months project duration.

• Training for staff in advanced technologies, especially those related to “New Industrialisation”.
• Both local and non-local training courses. Course providers must have two or more years of relevant experience.

• Funding is provided on a 2:1 government-to-company matching basis.
• Funding ceiling of HK$500,000 (US$640,156) per year.

• Companies registered in Hong Kong.
• Nominated employees must be Hong Kong permanent residents with relevant background/experience.

• Providing STEM students with innovation and technology (I&T)-related work experience during their studies.
• Newly created or existing in-house internship programs of the companies, with a duration of at least 28 days offering meaningful I&T-related work.
• The definition of I&T-related work is broad and must contain actual I&T elements (e.g. technology-related intellectual property work, digital marketing, data analysis for the manufacturing industry, etc.)

• Allowance of HK$11,190 (US$1,433) for each student per month with effect from 1 April 2023.
• At least 28 calendar days with a maximum of 90 days in each academic year.
• Funding is reimbursed by the ITC.

• All companies.
• Both local and non-local students undergraduates and postgraduates majoring in full-time eligible STEM-related programs at designated local universities, including the campuses established in the GBA, the five government-funded R&D centers, and HKPC.

• Maximum monthly salary of HK$20,000 (US$2,561) for talents with a bachelor’s degree, HK$23,000 (US$2,945) for talents with a master’s degree, and HK$35,000 (US$4,481) for talents with a doctoral degree.
• An additional HK$10,000 (US$1,280) monthly living allowance is provided for talents with doctoral degrees.
• Maximum employment duration of 36 months.
• Each company can apply for up to 4 talents.

• A company must be registered or registered and incorporated in Hong Kong with substantive business operations, conducting or planning to conduct R&D activities in Hong Kong.
• A company cannot be a government-subvented organization or a subsidiary.
• Talent must be legally permitted to work in Hong Kong during the employment period and hold a bachelor, master, or doctoral degree from, a local university or a well-recognized non-local institution, or jointly awarded by a local and non-local university, in a STEM-related discipline.

• Co-investment at a 1:2 ITVF-VC fund matching ratio.
• Aggregate matching investment ceiling of HK$400 million (US$51.2 million);
• Aggregate investment ceiling in a startup of HK$50 million (US$6.4 million);
• Matching investment for each co-investment in a startup may constitute no more than 40% of the original total target investment amount sought, up to HK$30 million (US$3.84 million)

• Have been incorporated in Hong Kong within the last seven years and have one of its offices (headquarters or regional office), main business operation, or key management or leadership team in Hong Kong;
• Be engaged in I&T business, covering any part of the R&D or production chain in Hong Kong (must include subsidiaries, if any); and
• Have no more than 250 employees (including in Hong Kong, Mainland China, and overseas offices) (including subsidiaries, if any).

• Funding to six universities to support teams of faculty and students to start technology businesses and commercialize their R&D results (TSSSU-O).
• Dollar-to-dollar matching funds for startups with demonstrable growth potential through securing investment from the private sector (TSSSU+).
• The six universities are:
  • The City University of Hong Kong;
  • Hong Kong Baptist University;
  • The Chinese University of Hong Kong;
  • The Hong Kong Polytechnic University;
  • The Hong Kong University of Science and Technology; and,
  • The University of Hong Kong.

• Annual funding of up to HK$16 million is provided for each of the six universities, split evenly between the TSSSU-O  and TSSSU+ programs.
• Maximum of HK$1.5 million (US$2 million) for each technology startup per year for up to three years under each program.

• Technology startups must have been registered in Hong Kong for less than two years (for TSSSU-O) or less than seven years (for TSSSU+) at the time of application.
• The startup team may be composed of undergraduates, postgraduates or alumni, and/or professors or other faculty members serving as consultants providing R&D technical expertise and direction.
• For TSSSU+ applications, the private investment amount secured during the matching period must be no less than the funding amount applied for.

• HK$8,000 (US$1,024) for projects costing less than HK$1 million (US$128,031);
• HK$14,000 (US$1,792) for projects costing between HK$1 million and HK$5 million (US$640,156); and
• HK$20,000 (US$2,561) for projects costing more than HK$5 million.

• A non-profit making trade/industry association or chamber of commerce;
• A public body (e.g. Hong Kong Productivity Council, Vocational Training Council, etc.);
• A charitable organization, local university, or other tertiary/post-secondary institute;
• A District Council; or
• A local unincorporated/incorporated company.

• Funding support for local companies and inventors to patent their intellectual work.
• Available to applications for functional patents and inventions with technology elements and susceptible to industrial application.

• All locally incorporated companies, Hong Kong permanent residents, or Hong Kong residents are permitted to remain in Hong Kong for at least 7 years.
• Must have no prior patent ownership in any country/territory, and must not have previously received PAG funding.

• Acquiring assets to facilitate the company’s business operations or of general working capital for the company’s business operations; or
• In certain circumstances, refinancing of facilities or facilities that were guaranteed under the SME Financing Guarantee Scheme; or
• If applicable, for financing the Single Upfront Guarantee Fee.

• Repaid in installments and fully amortized by the end of the guarantee period; the period between each repayment of principal should not exceed 3 months.
• The lender may allow the company to pay interest only in the first 6 months from the facility starting date upon request.

• Repaid in installments and fully amortized by the end of the guarantee Period; the period between each repayment of principal should not exceed 3 months.
• The lender may allow the company to pay interest only in the first 12 months from the facility’s starting date upon request.

• Pay wages and rent; and
• Meet imminent needs in working capital.

• Paid in monthly installments and fully amortized by the end of the guarantee period.
• The lender may allow the company to pay interest only in the first 12 months from the facility’s starting date upon request.