Hong Kong trust formation in 2023
Despite its handover to China in 1997, Hong Kong law is based on English common law, which recognises the concept of a trust. The following information will help you determine whether a Hong Kong trust is the optimum solution to fulfill your personal and/or corporate objectives.
Advantages of trust formation in Hong Kong
- Trust beneficiaries enjoy 100% tax exemption on their income, provided they are non-resident;
- There is no requirement to register trust documents with the Hong Kong authorities;
- A Hong Kong trust is not required to submit audited financial statements or an annual tax return;
- Hong Kong is an international financial centre with a reputable, advanced legal system. Hong Kong trustees are bound by the provisions of the Trustee Ordinance.
Disadvantages of trust formation in Hong Kong
- A Hong Kong Trust has access to only a very limited number of double taxation agreements.
Main uses for Hong Kong trust formation
- To hold assets including property, bank accounts, stocks, shares, and assets of offshore companies; insurance and assurance policies and intellectual property;
- To protect assets from creditors.
Healy Consultants fees for trust formation in Hong Kong
|Different Hong Kong trusts||Registration cost||Annual maintenance fees||Sample of draft invoice|
|Foreign trust||US$16,000||US$16,150||View invoice PDF|
|Onshore trust||US$16,700||US$14,450||View invoice PDF|
Contact us for a customized Hong Kong trust formation proposal.
Frequently asked questions
Can a foreign investor open a trust company in Hong Kong?Yes. Healy Consultants can help foreigners open a trust in Hong Kong.
If I form a trust in Hong Kong, will it be considered a legal entity?No, a trust company is not considered a separate legal entity in Hong Kong.
Why should I set up a trust in Hong Kong?Setting up a trust company in Hong Kong will help our Clients with i) protecting assets ii) acting as an investment vehicle where a trustee conducts the trust’s business on behalf of the beneficiaries.To find out about the procedures to set up a company in Hong Kong, please refer to our incorporation page.