Asia seems to generate billionaires faster than anywhere else in the world, and perhaps faster than in any period in history. In the next 10 years, $30 trillion is expected to be passed from one generation to the next in Asia.
Unlike most Western families, the leaders of wealthy Asian families trend reflects the concerns about adequately preparing the next generation to handle their assets. Therefore, the development of family offices is aimed at maintaining comprehensive inheritance strategies that protect wealth as it passes from one generation to the next, and the family office is given a significant role to play in this regard.
In the same time, the increasing sophistication of the new generation in terms of investment and their interest in diverse portfolios, including sustainable and ESG investments, highlights their desire for a more nuanced approach to risk and long-term value creation. Family offices is readily offer the expertise needed to navigate these complex investment landscapes and ensure compliance with regulatory and reporting requirements.
A key goal of family offices is to strike a balance between professional management, responsible ownership, and maintaining a healthy family dynamic. This requires careful consideration of both financial and non-financial factors to preserve and grow family wealth while promoting values that align with the family's aspirations.
In most cases, Family offices around the world are are operated via a corporate entity and is structured as Limited Liability Companies. It makes up of multiple highly-skilled professionals who have the power to make profitable financial decisions on behalf of the family whose wealth they manage. Usually, the system consists of an executive team, an investment team, and a back office.
Apart from that, there is no specific licensing framework in Hong Kong for family offices.
Hong Kong does not tax capital gain or offshore profits. In addition, dividend income is generally not taxable in Hong Kong.
A new profits tax exemption was gazetted on 19 May 2023 (the Family Office Tax Concessions Ordinance or the Ordinance), will waive a 16.5 per cent tax on profits generated from global stocks, bonds and other qualified investments by family offices set up in Hong Kong, and will be backdated to cover tax assessments from April 1 2022, not only covers investments in the city, but also those made in overseas markets.
Family offices can rely on the above favourable tax regime to manage the families’ investments in Hong Kong in a tax efficient manner.
Hong Kong is the de facto gateway to China and offers all the benefits of a deep and liquid capital market.
Under the principle of “One Country, Two Systems”, Hong Kong retains its independent immigration, monetary, fiscal and taxation systems.
It is growing more appealing to a new generation of international investors in the United States and Europe, who seek to manage and preserve their wealth not be constrained by geography.
Hong Kong is quickly becoming the best place to examine China's untapped potential for outward direct investment (ODI) or foreign direct investment (FDI) in Yangtze River Delta, Pearl River Delta, West Triangle and Bohai Rim Region.
From personal banking to private or corporate banking solutions
From regulatory reporting to corporate advisory service
From Wealth succession, Assets protection, Business succession consulting and Trust planning
"Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam.
"Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam.
"Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam.
"Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam.
"Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam.
