Hong Kong’s New Capital Investment Entrant Scheme (CIES) and Family Office Structuring: Achieving Both Investment and Compliance Objectives
Structure first, then apply for residency — this is the path to achieving both investment and compliance objectives.
For high-net-worth individuals intending to relocate to Hong Kong under the New Capital Investment Entrant Scheme (CIES), the real challenge is not merely meeting the capital threshold. It is how to hold the assets through a compliant family office or investment vehicle that simultaneously satisfies the Immigration Department’s residency approval requirements, Invest Hong Kong (InvestHK)’s investment compliance assessment, and the Securities and Futures Commission (SFC)’s regulatory requirements for asset management activities.
In simple terms, applicants are advised to follow this sequence: first establish a compliant family office structure → hold the required investments through the family-controlled vehicle → then submit the CIES application. This approach not only ensures that the HK$30 million investment meets the Scheme’s requirements, but also lays a solid foundation for long-term asset management compliance, thereby avoiding application delays or future regulatory risks arising from improper structuring.
CIES 2025 Optimisation Measures: Opening the Door for Family Office Structures
With effect from 1 March 2025, the Government introduced a series of optimisation measures for the CIES. Among these, the new option of “holding investments through a wholly-owned eligible private company” has created meaningful synergies between the CIES and family office arrangements.
優化項目 Optimisation Item | 具體內容 Details | 對申請人的意義 Significance for Applicants |
|---|---|---|
Shortened Net Asset Assessment Period | Reduced from 2 years to 6 months | Shortens the “lock-up” period for asset proof and improves liquidity |
Family Joint Assets Counted | The applicant’s absolute beneficial interest in net assets jointly owned with family members may be counted | Greater flexibility in asset planning |
Holding Investments via Holding Company | Applicants may hold permissible investment assets through a wholly-owned private holding company | Creates synergy with the family office tax concession regime |
“These optimisation measures will encourage more investors to participate in the New Scheme and create synergies with the family office tax concession regime, thereby promoting the development of family office businesses in Hong Kong.” — Secretary for Financial Services and the Treasury, Mr. Christopher Hui
Holding CIES Assets through a Type 9 Licensed Fund: Why Is It Necessary?
Holding the CIES’s HK$30 million of assets through a fund or family office that holds an SFC Type 9 licence (asset management) serves three key purposes:
1. Meeting the Legitimacy Requirements of the CIES Investment Requirements Assessment
Permissible investment assets may be held through a wholly-owned private company (i.e., through a Family-owned Investment Holding Vehicle (FIHV), such as a fund structure holding a Type 9 licence), which clearly complies with the New Scheme Rules. However, where assets are held at the fund level through a Type 9 licensed fund, it is essential to ensure that the fund itself is a compliant and recognised investment vehicle.
2. Providing a Compliant Foundation for Future Operations
The private company must continuously satisfy the following conditions throughout the application process (including the 6 months prior to submission of the investment requirements assessment application):
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✅ Incorporated or registered in Hong Kong
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✅ Wholly owned by the applicant
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✅ Holds only permissible investment assets
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✅ Adopts the form of a Family-owned Investment Holding Vehicle (FIHV)
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❗ The FIHV must employ at least two full-time employees in Hong Kong and incur annual operating expenditure of at least HK$2 million (applicable to the FIHV model)
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❗ Managed by a qualifying single family office that manages family assets with an aggregate value of at least HK$240 million (applicable to the FIHV model)
3. Addressing Potential SFC Licensing Requirements
If the private company in substance engages an external or related asset management company (which may not be a qualifying single family office), or if the arrangement constitutes a multi-family office, the activity may fall within the scope of Type 9 regulated activity. A single family office that manages only family assets may be exempt, but where external management is engaged or third-party asset management services are provided, the asset management company managing the structure will generally require a Type 9 licence.
What Is a Type 9 Licence (Asset Management)?
An SFC Type 9 regulated activity licence authorises a licensed corporation to carry on asset management activities. It permits the provision of discretionary portfolio management services in respect of securities, futures, funds, bonds and other investment products for clients.
適用場景 Application Scenario | 說明 Description |
|---|---|
Family Office Services | Provision of tailored asset management, tax planning and cross-border wealth succession services to high-net-worth families |
Investment Immigration Account Management | Provision of compliant discretionary investment accounts for CIES clients |
Onshore / Offshore Fund Management | Management of Cayman funds, Hong Kong Limited Partnership Funds (LPFs), Open-ended Fund Companies (OFCs) and other fund vehicles |
Discretionary Asset Management | Provision of discretionary asset management services to high-net-worth individuals, institutions or funds |
Q&A: How to Pass Dual Compliance Reviews under the CIES in One Go?
Q1: Which departments’ compliance reviews does a CIES application need to pass?
A：CIES application involves both Invest Hong Kong (InvestHK) and the Immigration Department. At the same time, the long-term compliance of the asset-holding structure must be ensured.
審查環節 Review Stage | 負責部門 Responsible Department | 審查重點 Key Focus |
|---|---|---|
Net Asset Assessment | InvestHK | Proof of beneficial ownership of net assets of ≥ HK$30 million within the preceding 6 months |
Investment Requirements Assessment | InvestHK | Confirmation that ≥ HK$30 million has been invested in permissible investment assets (including permissible financial assets and non-residential real estate, of which HK$3 million must be invested in the “CIES Investment Portfolio”) |
Visa Approval | Immigration Department | Review of absence of criminal record, legitimacy of assets, and residence requirements in Hong Kong |
Ongoing Compliance Monitoring | InvestHK | Ensuring the applicant continues to meet the minimum investment requirements |
Q2: How should the asset-holding structure be designed to meet the dual compliance requirements?
A: It is recommended to adopt a “two-layer compliance structure”:
架構層次 Structure Layer | 目的 Purpose | 對應監管要求 Corresponding Regulatory Requirem |
|---|---|---|
First Layer: Personal Beneficial Ownership | Satisfy the CIES Net Asset Assessment (6-month holding period and absolute beneficial ownership) | Demonstrate personal ownership of assets of ≥ HK$30 million |
Second Layer: Holding Assets through a Type 9 Licensed Fund | Ensure the compliance of the HK$30 million of permissible investment assets (for example, the fund is an SFC-authorised unit trust or is managed by a Type 9 licensed corporation) | Comply with CIES “permissible investment assets” requirements while satisfying asset management regulatory requirements |
Q3: How can the CIES application and Type 9 licence application processes be coordinated?
Scenario A: The applicant’s asset structure already holds assets through a Type 9 licensed fund
Submit the CIES application to InvestHK and the Immigration Department first → satisfy the Net Asset Assessment → ensure the assets are already invested in permissible investment assets (such as the fund mentioned above) → obtain approval → thereafter continue to meet the 7-year investment requirements.
Scenario B: The applicant’s asset structure does not yet include a Type 9 licensed fund
“One-stop application”: Progress the CIES application and the establishment of a Type 9 licensed asset management platform in parallel → ensure the HK$30 million of assets are held through the platform → the assets simultaneously satisfy both the CIES permissible investment asset requirements and asset management regulatory requirements.
Conclusion
The key to applying for the CIES through a compliant family office structure or Type 9 licensed fund is “compliance first” — establish the asset-holding structure first, ensure that the structure meets the CIES permissible investment asset conditions, and only then submit the residency application. Do not wait until after approval to discover that the asset-holding structure is non-compliant.
ComplianceOne Consulting Limited (“ComplianceOne”) provides one-stop advisory services for CIES applicants, covering asset structure planning, establishment of wholly-owned private companies, Type 9 licence applications, and ongoing compliance monitoring. We help you achieve both investment and compliance objectives and steadily realise your goal of relocating to Hong Kong.