Open an SPV Company in Hong Kong

A presentation brought to you by OpenCompanyHongKong.com

1

2

Special Purpose Vehicles in Hong Kong

• The Special Purpose Vehicle (SPV) is a legal structure that allows the parent company abroad to secure its assets.

• This is useful because it can secure the company’s obligations even in the event of bankruptcy.

3

Types of SPVs in Hong Kong

• In Hong Kong, the special purpose vehicle may be incorporated in one of the available business forms.

• It can take the form of a corporation, a partnership or a trustee.

4

Criteria for SPVs in Hong Kong

• Investors in Hong Kong who want to open an SPV must meet the following criteria:

SPV to be owned by a non-resident, partially or fully;

SPV to be incorporated or registered outside of the city;

engages only in holdings; is not an exempted private company.

5

SPV Registration in Hong Kong

• The SPV is typically a company controlled by a foreign corporation or investor who contributed to sponsoring its creation and for the benefit of which the SPV was created.

• The SPV is not necessarily registered in Hong Kong and the parent company will usually maintain a high degree of control on this investment vehicle.

6

SPV Use in Hong Kong

• The Special Purpose Vehicle can be used for research and development activities, securing financial assets or other purposes.

• It usually has a well-established objective but it is different from other business forms like the branch office.

• Investors from China will often choose to base an SPV in Hong Kong.

7

Types of Companies in Hong Kong

• Investors in Hong Kong have a number of options for company formation if the SPV takes the form of a corporation:

the private limited liability company

;

the public limited liability company.

8

Types of Partnerships in Hong Kong

• The partnership is another business form that can be used to create a special purpose vehicle.

• In the general partnership both investors are equally liable. While the investors still have a great degree of liability, the limited partnership is a good business option.

9

Company Registration in Hong Kong

• Company registration in Hong Kong is fairly simple when creating a special purpose vehicle but also for general company incorporation purposes.

• The Companies Registry is the body in charge with registering all legal entities in the city.

10

Assistance for SPV Creation in Hong Kong

• The special purpose vehicle can be used for a well-defined investment scheme, with the parent company having a beneficial interest in it.

• Our company registration agents in Hong Kong can help you open a this type of entity and give you advice on many other company incorporation related matters.

Thank You for Your Attention!

For more information please contact us at:

 + 852 8191 3385 (for international clients)

office@lawfirmhongkong.com

http://www.opencompanyhongkong.com/ 11