The Securities and Futures Commission (SFC) sets out the basic principle underlying the authorisation of unit trusts and mutual funds under the Code on Unit Trusts and Mutual Funds (“UT Code”)

Key Features

Funds that are offered to the public in Hong Kong are legally required to obtain prior authorisation from the SFC, unless one of the exemptions in the Securities and Futures Ordinance (”SFO”) applies.

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

Company, Unit trust, Limited Partnership

  • Local physical office required

No

Share capital or equivalent

  • Minimum subscription

None

  • Minimum investors

None

Directors

  • Minimum number

1

  • Corporate directorship allowed

Yes

  • Local director required

No

Service Providers Required

  • Custodian

Yes

  • Fund manager/Investment manager

Yes

  • Fund administrator

No

  • Auditors

Yes

Tax Treatment

  • The profits tax exemption will apply to publicly offered fund entities and to privately offered fund entities whose central management and control is located outside Hong Kong.
  • Onshore privately offered entities remain subject to profits tax at the rate of 16.5% for income derived from Hong Kong.
  • Profits derived from outside Hong Kong is tax exempt. There is no withholding tax on interest or dividends and no capital gains tax.

Duration to Set Up

About 3 months

Distinctive Benefits of Licence

  • Hong Kong imposes no restrictions on foreign investments and has no foreign exchange controls
  • Ease of business establishment and licensing
  • Favourable tax regime
  • Conducive regulatory environment with formidable anti-money-laundering legislation

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service providers