01
Family governance comes before a company or trust
The family first defines participants, capital objectives, investment decisions, generational authority, conflicts, distributions, successor education, incapacity and dispute resolution. A family charter aligns expectations but does not replace binding articles, a shareholders’ agreement, trust deed, will, investment mandate or bank authorities. Documents governing assets in several countries must be reconciled so one event does not trigger conflicting procedures.
02
A holding company, trust, family office and fund have different jobs
A holding company owns assets or shares, a trust separates legal ownership and beneficial interests, a family office organises management and family services, and an OFC or LPF is an investment fund vehicle. They are not interchangeable. The architecture records the settlor, trustee, protector, directors, investment manager, beneficiaries, shareholders, ultimate control and accounts, as well as governing law and effective management.
03
SFC licensing follows the family office's actual activities
Hong Kong has no single family-office licence. The SFC applies an activity-based test covering regulated activity, business and where it is carried on. A genuine single family office may not need a licence when it is not carrying on a regulated business or an exemption applies, while multi-family, third-party, dealing, advisory or asset-management functions may engage licences. A label, intra-group contract or expense reimbursement does not replace functional analysis.
04
The FIHV tax concession requires every condition to be met
The regime concerns an eligible family-owned investment holding vehicle managed in Hong Kong by an eligible single family office. Structure and family ownership, normal management or control, aggregate specified assets of at least HK$240 million, substantial activities, qualifying transactions, employees and expenditure, election and anti-avoidance rules are tested. The concession does not automatically cover a trading business, all family assets or every private-company gain.
Hong Kong can connect family governance, investment portfolios and Asian access, but it does not make Mainland Chinese capital freely transferable. A sound structure starts with family rules and the lawful origin of each asset, then aligns the trust, holding company, family office, licensing, tax and banking.
05
Mainland China wealth needs a permitted route
A Hong Kong company, trust or account does not disapply Mainland foreign-exchange, tax or regulatory rules. Each transfer needs an identified owner, residence, source, purpose, instrument, bank and relevant approval or report. Cross-boundary Wealth Management Connect is a ring-fenced scheme with eligible investors, banks, dedicated accounts, quotas and permitted products, not a general capital-export channel. Investment, dividends, business sales, inheritance and emigration use their own legal bases.
06
Banking follows real ownership and management
An HKMA-authorised bank assesses the client independently and need not open an account because a structure or tax concession exists. The KYC file aligns family history, source of wealth, each contribution, UBO and control map, trust deed, authorities, financial statements, tax residence, operating countries, investment mandate and expected payments. Personal, trust, holding, operating and investment accounts have distinct purposes and should not be mixed.
07
CRS, tax and succession are tested in every relevant country
Hong Kong reporting financial institutions perform due diligence and report relevant accounts, including controlling persons of applicable passive entities. A trust, FIHV, family office or holding company's classification follows activity and management, not its name alone. Personal and corporate residence, CFC, income source, distributions, estate and gift rules, beneficial ownership and home-country reporting are reviewed together. Hong Kong does not automatically terminate foreign obligations.
08
Build one map of the family, assets and decisions
The project starts with a family balance sheet and country map, then governance rules and succession events, ownership vehicles and providers, SFC and tax analysis, bank pre-screening and the lawful funding route. Corporate, trust, investment and inheritance documents are aligned before assets move. The operating calendar then covers board and family decisions, accounts, filings, CRS self-certifications, distributions and annual legal review.
FAQ
FAQ
Does a Hong Kong single family office need an SFC licence?
Not always. It depends on regulated activity, carrying on business in Hong Kong and available exemptions; functions must be tested before management starts.
Can Mainland family wealth be transferred to a Hong Kong trust?
Only through a lawful basis compliant with foreign-exchange, tax, banking and other rules. The trust itself creates no remittance permission.
Is HK$240 million enough for the FIHV zero rate?
No. The asset threshold is one condition among ownership, management, substance, transactions and election requirements.
Does a family charter replace a will and trust deed?
No. A charter records family principles, while legal effects sit in applicable corporate, succession and trust documents.
↗