Employment Pass Options for Entrepreneurs in Hong Kong

Hong Kong (HK) is an extremely popular place for offshore investment, and entrepreneurs who decide, not only on Hong Kong incorporation, but also to live there will need to know their employment pass options.

 

Unlike Singapore, there are just two main types of employment pass available and one of these is relevant to entrepreneurs undertaking company incorporation in Hong Kong. The pass for entrepreneurs is known as a pass of "Entry for Investment" which is relevant to people starting a business or joining in a business in Hong Kong, and each application is judged on a case by case basis. Those being hired into a professional firm are eligible for another type of employment pass - IANG (Immigration Arrangements for Non-local Graduates, GEP (General Employment Policy) or ASMTP (Admission Scheme for Mainland Talents and Professionals). Those who simply wish to obtain residency in Hong Kong may be eligible under the Capital Investment Entrant Scheme, which requires an individual to have nett assets of at least HK$6.5 million and invested this into permissible asset classes.

 

It is important to note that some nationalities are not eligible for the "Entry for Investment" work permit for a variety of reasons. Nationalities that cannot obtain the pass are Afghans, Albanians, Cambodians, Cubans, Laotians, Koreans, Nepalese, Vietnamese and mainland Chinese. An exception to the rule exists for those with a People's Republic of China passport, if they have been living outside of China for over a year or have permanent residency in a country other than China, and so long as their application is submitted from overseas - i.e. outside Hong Kong SAR, Macau and Mainland China.

 

Entrepreneurs should also be aware of various factors that may influence the success or failure of their application for an "Entry for Investment" pass. Education is very important in Asian culture and this translates into their business policies. In Hong Kong, entrepreneurs are expected to be well educated, and the HK government website mentions that having a "First Degree" (top degree class) is a normal requirement. Evidently, not all entrepreneurs hold First Class Degrees or any degree at all, and for that reason factors such as work experience, technical diplomas or certificates and general professional achievements are taken into consideration in some cases.

 

The main concern for Hong Kong officials is that the foreign entrepreneur brings in a required and/or rare talent in a business industry that HK values or wishes to thrive in. Having experience in being able to teach the entrepreneur's own unique skills to others is an added bonus. If the entrepreneur's business can be perceived to enhance the HK economy or make a relevant contribution to the economy, there are obviously higher chances for the "Entry for Investment" pass application to be approved.

 

As a general rule, criminal records and any perceptions of being a security threat will have a direct influence on the application. Hong Kong has very tight rules to protect the security of HK residents. That being said, this rule is very similar to the rules in most business hubs.

 

Once the entrepreneur's own personal attributes have been taken into consideration, there remains a requirement to have a Hong Kong sponsor, more specifically a person living in HK that will vouch for the entrepreneur's talent. In fact, the sponsor can also be a company that is incorporated in HK. As a general specification, the sponsor, if a person, must be above 18, a Hong Kong resident, and must have a relevant level of acquaintance with the employment pass applicant. Entrepreneurs who wish to incorporate in HK and live there do not usually know anybody who lives in HK as a HK resident, and believe it is impossible for them to incorporate. However, there are various professional services firms that offer to act as sponsor for entrepreneurs, at a fee, and therefore incorporating in Hong Kong and acquiring a pass of "Entry for Investment" in HK, is accessible to people from all over the world.

 

For more information on the HK "Entry for Investment" pass, visit the Hong Kong Immigration Department's website.

 

For more information on our Hong Kong Trading Services, email email@healyconsultants.com or call us in Hong Kong at +(852) 8331 1911.

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