Company Setup · Hong Kong

Hong Kong Family Office Structures

Hong Kong has introduced targeted family office incentives including the Section 20AM tax concession, positioning it as Asia's premier family office destination alongside Singapore.

Family OfficeHong KongSFOTax ConcessionWealth ManagementAsia

Overview

Hong Kong as a Family Office Hub

Hong Kong has historically been a leading family office location due to its proximity to mainland Chinese wealth, deep financial markets, and common-law legal system. The 2023 introduction of the Section 20AM tax concession for qualifying family-owned investment holding vehicles (Family-owned Investment Holding Vehicles — FIHVs) added a formal tax incentive to HK's family office proposition.

Marensa Advisory advises ultra-high-net-worth families and multi-family office operators on HK family office formation, investment holding vehicle structuring, and the Section 20AM tax concession application.

Discuss HK Family Office Structuring

What We Cover

Single family office vs multi-family office determination
Investment holding vehicle formation (FIHV)
Section 20AM tax concession application
Family governance charter and investment policy
SFC licensing assessment for investment management activities
Trust and succession integration
Bank account opening for family office entities
Ongoing compliance and annual reporting

Key Considerations

HK Family Office — Key Considerations

Family office structuring in HK requires balancing the tax concession eligibility criteria against the family's investment objectives and governance preferences.

Section 20AM Tax Concession

Qualifying Family-owned Investment Holding Vehicles (FIHVs) managed by a single-family office entity in HK can obtain a tax concession on qualifying investment income — similar to Singapore's 13O/13U scheme.

FIHV Eligibility

To qualify for Section 20AM, the FIHV must be wholly-owned by the family, managed by a qualifying family office entity in HK, invest at least HKD 240 million in assets, and meet specific HK spending requirements.

SFC Licensing Threshold

Family offices managing assets only for the family do not generally require SFC Type 9 authorisation. However, if the family office manages assets for third parties (even other family members beyond the core family), SFC licensing may be required.

Governance

A family governance charter documents investment objectives, decision-making processes, next-generation involvement policies, and conflict resolution — essential for multi-branch families.

Cross-Border Integration

HK family offices are commonly integrated with Cayman or BVI holding companies, Mauritius GBC structures, and HK trusts — creating a layered, multi-jurisdictional wealth architecture.

Proximity to China

HK's unique position provides family offices with preferential access to mainland China investment opportunities through Stock Connect, Bond Connect, and other cross-border schemes unavailable to offshore entities.

Our Process

How We Work

Needs Assessment

We discuss the family's investment profile, asset base, governance preferences, and succession objectives — including China and Asia-Pacific investment strategies.

Structure Design

We design the optimal family office structure — FIHV, SFO entity, trust overlay, and underlying holding vehicles — for tax efficiency and governance.

Concession Application

We assist with the Section 20AM tax concession application, ensuring eligibility criteria are met and documentation standards are satisfied.

SFC Licensing Assessment

We assess whether any family office activities require SFC licensing and advise on how to structure activities to remain outside the licensing threshold where possible.

Governance & Launch

We assist with governance documentation, bank account opening, and ongoing compliance and reporting for the family office entity.

Why Marensa

Asia Wealth. HK Infrastructure.

HK family office structuring requires deep understanding of both the Section 20AM concession eligibility requirements and the broader investment and governance objectives of the family.

Marensa Advisory advises on HK family office structures as part of cross-border wealth architectures spanning UAE, Singapore, Mauritius, Cayman and HK — providing joined-up advice across all relevant jurisdictions.

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HKD 240M

Min Asset Threshold

20AM

Tax Concession

Asia Wealth Hub

SFO

Family Vehicle

FAQ

Common Questions

What is the minimum asset size for a HK family office? +

The Section 20AM tax concession requires the FIHV to hold at least HKD 240 million in assets under management. Smaller family offices can still be established in HK but may not qualify for the concession.

How does the HK Section 20AM concession compare to Singapore's 13O/13U? +

Both provide tax concessions for qualifying single-family office structures. HK requires HKD 240M minimum AUM; Singapore 13O requires SGD 10M minimum. Singapore's concession is more mature and includes economic commitments. HK's scheme is newer but offers proximity to mainland China as a distinct advantage.

Does a HK family office need an SFC licence? +

Family offices managing assets exclusively for a single family's own account generally do not need SFC Type 9 authorisation. Once third-party assets are managed — including assets for family members outside the core family — SFC licensing may be triggered.

Can a UAE-based family establish a HK family office? +

Yes. Many Middle Eastern families establish HK family offices alongside their UAE structures to access Asian investment opportunities, particularly mainland China. Cross-border family office structures spanning UAE and HK are increasingly common.