How to Set Up a Family Office in Hong Kong: A Comprehensive Guide

Hong Kong has emerged as one of Asia’s premier destinations for establishing family offices.

It is known for offering a robust financial infrastructure and a favorable regulatory environment for wealthy families looking to manage their assets professionally.

This guide on how to set up a family office in Hong Kong provides essential information, from basic concepts to specific requirements and advantages.

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How does a family office work in Hong Kong?

A family office is a private organization dedicated to managing the wealth and affairs of high-net-worth families.

The HK government has been introducing various family office incentives and streamlining processes to attract ultra HNWIs from around the world.

In his March 26, 2025 Wealth for Good Summit speech, the Financial Secretary announced an expansion of fund exemptions and enhanced concessions for family offices and private equity, reinforcing HK’s commitments under the 2024–25 Budget.

These specialized entities handle various aspects of gestione patrimoniale, including investments, tax planning, philanthropy, succession planning, and other financial and non-financial matters.

Il operational model of a family office typically includes:

1. Gestione patrimoniale – Overseeing investments across various asset classes
2. Estate and succession planning – Ensuring smooth transfer of wealth between generations
3. Pianificazione fiscale – Optimizing tax efficiency across jurisdictions
4. Philanthropy – Managing charitable activities and impact investments
5. Family governance – Establishing frameworks for decision-making and conflict resolution
6. Administrative services – Handling day-to-day financial operations and reporting

In Hong Kong, family offices generally operate in two main forms:

Single-Family Offices (SFOs)

These are established exclusively to serve one wealthy family.

They provide customized services tailored to the specific needs, values, and objectives of that family.

SFOs offer complete control and privacy, with dedicated professionals working solely for the interests of the founding family.

Multi-Family Offices (MFOs)

These serve multiple wealthy families, allowing them to share operational costs and resources.

MFOs provide similar services to SFOs but at a potentially lower cost due to economies of scale.

They typically require licensing from regulatory authorities like the Securities and Futures Commission in Hong Kong.

How many family offices are there in Hong Kong?

Hong Kong has impressive growth in recent years:

• As of the end of 2023, Hong Kong was home to approximately 2,700 single-family offices.
• Over half of these were established by ultra-high-net-worth individuals with wealth exceeding USD 50 million.
• The Hong Kong government aims to attract an additional 200 family offices by 2025, according to Bloomberg.

The growth trajectory continues to be strong, with recent data showing:

• 136 additional family offices were preparing or decided to set up business in Hong Kong by the end of March 2024.
• Of these family offices, 82 are from mainland China, 13 are from other Asian countries, 27 are from Europe, 9 are from the Middle East, 4 are from Oceania, and 1 from North Africa.
• Since June 2021, InvestHK, the government department responsible for attracting foreign investment, has received more than 650 inquiries about family offices.

This robust growth demonstrates Hong Kong’s strong appeal and competitive position in the global family office landscape.

Why set up a family office in Hong Kong

Hong Kong offers numerous advantages that make it an attractive location for establishing a family office:

Strategic Location and Financial Hub Status

• Gateway to mainland China and Asian markets
• Home to numerous international financial institutions and investment opportunities
• Deep and liquid capital markets with diverse investment options

Robust Regulatory Framework

• Well-established legal system based on English common law
• Strong rule of law and protection of property rights
• Transparent and efficient business environment

Tax Advantages

• Simple and competitive tax system
• No capital gains tax, dividend tax, or inheritance tax
• Specific tax concessions for family investment holding vehicles managed by single-family offices

Access to Professional Talent

• Deep pool of financial, legal, and tax professionals
• Multilingual workforce with international experience
• Strong ecosystem of service providers specializing in wealth management

Government Support

• Active government promotion and support for family offices
• Dedicated team at InvestHK to assist with setup and expansion
• Clear regulatory guidance and streamlined processes

Lifestyle and Infrastructure

• World-class infrastructure and connectivity
• High quality of life with excellent healthcare and education options
• Cosmopolitan environment with diverse cultural offerings

Proximity to Growth Markets

• Close ties to mainland China’s growing wealth market
• Strategic position within the Greater Bay Area development
• Access to emerging markets throughout Asia

These factors combine to make Hong Kong a premier destination for family offices seeking a balanced approach to wealth preservation, growth, and succession planning in Asia.

How much money do I need to have a family office in Hong Kong?

Establishing a family office requires significant financial resources. In Hong Kong, the specific requirements include:

Minimum Asset Requirements

For a single-family office under Hong Kong’s tax incentive regime, you need to manage family-owned assets (Assets Under Management or AUM) of at least HKD 240 million.

Ownership Structure Requirements

The family must hold at least 95% of the beneficial interest in the single-family office. Alternatively, the family can hold 75% if tax-exempt charities hold the remaining 25%.

Operational Expenditure

Each Family Investment Holding Vehicle (FIHV) must incur a minimum annual operating expenditure of HKD 2 million in Hong Kong for carrying out investment activities.

Staffing Costs

You’ll need to budget for employing at least two full-time qualified employees in Hong Kong, as required under the substantial activities’ requirements.

These employees’ salaries, benefits, and related expenses will constitute a significant ongoing cost.

Beyond these minimum requirements, the actual cost of running a family office varies widely depending on:

• The complexity of the family’s wealth
• Strategie di investimento
• The range of services provided

Many industry experts suggest that to justify the cost of a dedicated single-family office, a family should typically have net assets of around USD 100 million.

However, this is not a regulatory requirement.

What are the requirements for a family office in Hong Kong?

Setting up a family office in Hong Kong involves meeting several regulatory, legal, and operational requirements:

Registration Requirements

1. Company Registration: Register with the Companies Registry (CR) to obtain a Certificate of Incorporation.
2. Business Registration: Register with the Business Registration Office (BRO) of the Inland Revenue Department (IRD) to obtain a Business Registration Certificate.

Licensing Requirements

• Single-family offices generally don’t need specific financial licenses if they only serve their own family.
• Multi-family offices typically need licenses from the Securities and Futures Commission (SFC) for regulated activities like investment advice and asset management.

Tax Considerations

• Formal election for tax concessions is required and is irrevocable once made.
• Both the single-family office and each qualifying Family Investment Holding Vehicle (FIHV) must file annual tax returns with the IRD.

Substantial Activities Requirements

• Employ at least two full-time qualified employees in Hong Kong.
• Incur at least HKD 2 million in annual operating expenditure in Hong Kong for investment activities.

Employment Requirements

1. Mandatory Insurance: Take out Employees’ Compensation Insurance as required by law.
2. Employment Agreements: Formalize relationships with staff through proper employment contracts.
3. Tax Filing: Maintain an employer tax file number and fulfill employer tax reporting obligations.

Compliance and Reporting

• Maintain proper corporate governance structures.
• Comply with anti-money laundering and counter-terrorist financing regulations.
• Keep accurate financial records and fulfill regular reporting obligations.

Steps for Setting Up a Family Office in Hong Kong

Setting up a family office in Hong Kong involves a systematic approach:

Assessment and Planning

• Define your objectives, whether wealth preservation, philanthropy, or succession planning
• Determine the type of family office (SFO or MFO) that best suits your needs
• Develop a comprehensive business plan outlining vision, mission, and strategy

Design and Structure

• Create the legal, tax, and operational framework
• Establish governance mechanisms and decision-making processes
• Develop investment policies and risk management strategies

Registration and Setup

• Register your company with the Companies Registry
• Obtain a Business Registration Certificate from the IRD
• Set up banking relationships and administrative systems
• If needed, apply for relevant licenses from the SFC

Team Building and Implementation

• Recruit qualified professionals or engage service providers
• Implement operational systems and reporting processes
• Establish investment platforms and technology infrastructure

Operation and Compliance

• Make formal election for tax incentives where applicable
• Establish ongoing compliance monitoring
• Implement regular reporting and recensione mechanisms

Conclusione

Hong Kong continues to strengthen its position, offering a compelling combination of financial infrastructure, regulatory clarity, tax advantages, and professional expertise.

For those considering setting up a family office in Hong Kong, the government has created clear pathways and substantial incentives, while maintaining the necessary oversight to ensure system integrity.

The minimum requirement of HKD 240 million in assets under management positions Hong Kong’s family office regime to attract serious wealth while remaining accessible to the growing number of high-net-worth families in Asia and beyond.

As global wealth continues to grow and the need for sophisticated wealth management increases, Hong Kong’s family office ecosystem is well-positioned to serve as a key pillar in the global landscape of private wealth management.

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Adam è un autore riconosciuto a livello internazionale in materia finanziaria con oltre 830 milioni di visualizzazioni di risposte su Quora, un libro molto venduto su Amazon e un contributo su Forbes.