Hong Kong Asset Management License
Hong Kong is one of the largest single financial centers in the world. While not recognized as an offshore financial services center, Hong Kong remains one of the few jurisdictions in the world that levies tax on a territorial basis. That is, only income derived from or arising in Hong Kong is subject to taxation. As a result money managers have flocked to obtain a Hong Kong Asset Management License.
Given its status as an international hub for transshipment and re-export, there are over one million active Hong Kong corporations, despite its relatively small size. Many of these corporations serve as large multi-national corporations or subsidiaries thereof who reap the benefits of Hong Kong’s unique tax structure. Moreover, Hong Kong is known for the high sophistication of its banking and payments infrastructure, making it ideal for securities and commodities investment-related activities.
The Hong Kong Securities and Futures Commission is charged with oversight and the Securities and Futures Ordinance and, in turn, asset management activities. A Hong Kong Asset Management License allows the holder to engage in portfolio management activities on a discretionary basis, including hedge fund management. The streamlined, cost-effective process set forth by the Hong Kong SFC has made Hong Kong one of the premier jurisdictions for hedge fund and related account management.
Advantages of a Hong Kong Type 9 License
Since the advent of hedge funds in the 1970’s, asset managers have flocked to tax-advantaged jurisdictions to shelter their above-market gains from punitive tax rates in traditional jurisdictions such as the United States and United Kingdom. That trend has continued through today as sophisticated investors have come to expect often complex, private tax-neutral structures for their investments. As such, a Hong Kong Asset Management License is an ideal structure for global money managers.
Cayman Islands Fund Registration
|License||Type 9 License|
|Time to License||3 to 4 Months|
|Paid-In Capital Requirement||HK 100,000|
|Tax Structure||No Tax on Offshore Income|
The Hong Kong Asset Management
- Incorporation of Hong Kong corporation
- Arrange for local registered officer and local directors, if required
- Investor offering prospectus and subscription agreements
- Draft corporate bylaws, minutes and owner share issuances
- Establishment of corporate bank account suitable for forex operations
- Establishment of merchant service account for accepting credit and debit cards
- Draft requisite business plan, financial statements and financial projections
- Draft requisite Anti-Money Laundering & Know-Your-Customer policies
- Arrange for requisite surety bond
- Prepare and process application a Hong Kong Asset Management License.
- Representation before licensing regulatory authority, banks and liquidity providers
Contact the Hong Kong Asset Management License Experts
Trust our over fifty year’s combined experience in creating innovative solutions for our clients. Contact the hedge fund
registration experts at FinLaw to begin the process of obtaining your Hong Kong Type 9 license today.
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