Hong Kong has long been recognized as a global wealth hub, offering an ideal environment for high-net-worth individuals and families to manage and preserve their assets. In recent years, the city has seen a sharp rise in family offices, with over 2,700 single-family offices established or planned by the end of 2023, according to InvestHK estimates, underscoring its growing importance in the global wealth management landscape. This growth is driven by Hong Kong’s strategic position as a gateway to Asia, its robust financial and legal infrastructure, and a favorable tax regime that includes targeted incentives for family offices. Hong Kong continues to strengthen its status as a premier destination for families seeking long-term wealth management, governance, and legacy planning with forward-looking government policies.
Key Takeaways
Leading Wealth Hub
Hong Kong is home to over 2,700 single-family offices, supported by world-class financial infrastructure and a strategic gateway to Asia.
Favorable Tax Regime
No capital gains, VAT, or withholding tax, plus tax concessions under the Inland Revenue (Amendment) (Tax Concessions for Family-owned Investment Holding Vehicles) Ordinance 2023.
Government Support
Initiatives like the FamilyOfficeHK program and the reintroduced Capital Investment Entrant Scheme (CIES) attract UHNWIs globally.
Step-by-Step Setup
Families must determine their office type, register a company, open bank accounts, hire qualified staff, and maintain compliance with IRD.
FastLane Group Support
FastLane Group supports every stage — from company incorporation, tax planning, and compliance with FIHV incentives to governance and staffing — ensuring a seamless family office setup in Hong Kong.
What Is A Family Office?
A family office is a dedicated entity established to manage the financial and personal affairs of high-net-worth individuals (HNWIs) and their families. Its primary purpose is to centralize wealth management, governance, and legacy planning under one structure, ensuring long-term preservation of family wealth across generations. By consolidating financial operations, family offices provide greater transparency, efficiency, and control, while also creating a structured platform for intergenerational succession.
Types of Family Offices
- Single Family Office (SFO) – An SFO serves one family exclusively, offering highly personalized services tailored to its unique financial and lifestyle needs. It provides full control over investments, estate planning, and governance, making it ideal for ultra-high-net-worth families seeking privacy and bespoke solutions.
- Multi-Family Office (MFO) – An MFO caters to multiple families, pooling resources to deliver professional services more cost-effectively. While less exclusive, MFOs allow families to benefit from shared expertise, wider investment opportunities, and reduced operational costs.
Services Offered by Family Offices
Family offices go beyond traditional investment management, offering a holistic suite of services to protect and grow family wealth while supporting broader lifestyle needs:
- Investment Management – Strategic allocation across asset classes such as equities, real estate, private equity, and alternative investments.
- Estate and Succession Planning – Structuring trusts, wills, and governance frameworks to preserve wealth for future generations.
- Philanthropy – Establishing charitable foundations or initiatives that reflect family values and social impact goals.
- Concierge Support – Lifestyle and administrative services, including education planning, healthcare coordination, and luxury asset management.
By integrating financial oversight with governance, family offices ensure that wealth is preserved, grown, and aligned with family values—making them a cornerstone of modern wealth management.
Why Choose Hong Kong For A Family Office?
Hong Kong has established itself as one of the world’s leading destinations for family offices, thanks to its unique combination of strategic location, world-class financial services, and favorable tax environment. With over 2,700 single-family offices operating in the city as of December 2023, Hong Kong continues to strengthen its position as a premier hub for wealth management and long-term family planning.
Strategic Location: Gateway to Asia
Situated at the crossroads of Mainland China and the Asia-Pacific, Hong Kong offers unparalleled access to some of the fastest-growing economies in the world. Its proximity to Mainland China makes it a natural choice for families with cross-border investment interests, while its global connectivity supports international wealth diversification.
Robust Financial Services
Hong Kong consistently ranks among the world’s top financial centers, second only to Switzerland in assets under management. Its deep capital markets, trusted banking system, strong legal framework, and pool of skilled professionals create an ecosystem that enables family offices to thrive. Families benefit from access to sophisticated investment products, professional advisory services, and a transparent regulatory environment.
Attractive Tax Regime
Hong Kong’s tax structure is one of the most competitive globally. The city imposes no capital gains tax, no value-added tax (VAT), and no withholding tax on dividends or interest. Recent tax concessions for family-owned investment holding vehicles (FIHVs) provide additional clarity and benefits, enhancing the city’s appeal compared to hubs like Singapore, London, or Switzerland.
Read: Tax Concessions For Family Offices In Hong Kong
Government Incentives
The Hong Kong government has rolled out a comprehensive Family Office regime, including targeted tax exemptions for qualifying FIHVs. Key measures such as the Inland Revenue (Amendment) (Tax Concessions for Family-owned Investment Holding Vehicles) Bill 2022 provide certainty and encourage more ultra-high-net-worth families to establish operations in the city. Dedicated support through initiatives like FamilyOfficeHK further reinforces Hong Kong’s commitment to becoming Asia’s top family office hub.
High Quality of Life
Beyond its financial strengths, Hong Kong is also a highly livable city. Families benefit from world-class international schools, advanced healthcare facilities, a safe environment, and a vibrant lifestyle. This combination of business efficiency and family-friendly amenities makes Hong Kong not only a place to manage wealth but also a home for generations to come.
Key Market Trends in Hong Kong’s Family Office Sector
The family office sector in Hong Kong is expanding rapidly, fueled by policy incentives, global wealth migration, and the city’s position as a leading wealth management hub. Several trends are shaping its development and future outlook:
Growth of Single Family Offices
As of December 2023, Hong Kong was home to more than 2,700 single-family offices, underscoring its rise as a preferred jurisdiction for ultra-high-net-worth families. This surge reflects confidence in Hong Kong’s financial ecosystem and its strategic family office regime.
New Capital Investment Entrant Scheme (CIES)
The reintroduction of the Capital Investment Entrant Scheme (CIES) has added momentum to the sector by attracting investors and wealthy families seeking residency through capital deployment. This initiative complements Hong Kong’s target of attracting at least 200 new family offices and 400 related service providers by 2025 under the government’s strategic roadmap.
Read: New Capital Investment Entrant Scheme (CIES) Hong Kong 2025
Increased Demand from UHNW Individuals
Rising global wealth, particularly in Asia, has driven more ultra-high-net-worth (UHNW) individuals to establish family offices in Hong Kong. These families are seeking not just tax efficiency, but also governance, legacy planning, and proximity to Asian markets.
Competition with Singapore and Global Hubs
Hong Kong competes closely with Singapore, Switzerland, and London as a family office destination. While Singapore has gained traction with its tax frameworks, Hong Kong is countering with targeted incentives, streamlined policies, and enhanced global promotion through initiatives like FamilyOfficeHK.
Role of Digital Transformation
Technology is reshaping wealth management. Digital tools for portfolio management, compliance monitoring, and risk assessment are being integrated into family office operations in Hong Kong, enabling efficiency, transparency, and cross-border wealth oversight.
Supportive Policies and Tax Incentives
To strengthen its position as Asia’s leading family office hub, Hong Kong has introduced supportive legislation and tax concessions that provide clarity and significant benefits for high-net-worth families. The most notable measure is the Inland Revenue (Amendment) (Tax Concessions for Family-owned Investment Holding Vehicles) Bill 2022, which became effective on 19 May 2023.
Overview of the Inland Revenue (Amendment) Bill 2022
The bill offers profits tax exemptions for qualifying transactions carried out through Family-owned Investment Holding Vehicles (FIHVs) managed by a Single Family Office (SFO) in Hong Kong. By eliminating ambiguity around taxable income, it enhances certainty for families considering or already operating a family office in the city.
Tax Exemptions for FIHVs
Under the new regime, income from trading or investment activities in most bankable assets is exempt from Hong Kong profits tax, provided qualifying conditions are met. This gives families greater flexibility in structuring their wealth while ensuring compliance.
Qualifying Conditions
To benefit from these exemptions, FIHVs and their SFOs must meet the following criteria:
- Family ownership: At least 95% beneficial ownership by a single family (reduced to 75% if the balance is held by a Section 88 charity).
- Assets under management (AUM): A minimum of HKD 240 million.
- Staffing: At least two full-time qualified investment professionals, who may include family members.
- Operating expenses: Minimum annual expenditure of HKD 2 million.
- SFO licensing: SFOs are generally exempt from SFC licensing requirements since they manage assets solely for a single family.
Strategic Impact
These measures not only align Hong Kong with competing hubs like Singapore but also reinforce its unique advantages—low tax rates, robust financial services, and global connectivity. By providing a clear and attractive framework, Hong Kong positions itself as a premier destination for family offices seeking long-term wealth preservation and governance.
Step-by-Step Guide To Setting Up A Family Office In Hong Kong
Establishing a family office in Hong Kong requires careful planning to ensure compliance, efficiency, and long-term sustainability. Below is a step-by-step guide that outlines the key stages of the process:
1. Determine the Type of Family Office (SFO vs. MFO)
Decide whether to establish a Single Family Office (SFO), which serves only one family, or a Multi-Family Office (MFO), which caters to multiple families. SFOs provide exclusivity and customization, while MFOs allow cost-sharing and broader resources.
2. Choose the Legal Structure
Select an appropriate legal framework, such as a private limited company, partnership, or trust. A private limited company is the most common due to its flexibility, ease of administration, and liability protection.
3. Register with the Companies Registry
File the required incorporation documents with the Hong Kong Companies Registry. Key documents include:
- Form NNC1 (Incorporation Form)
- Articles of Association (AoA)
- Identification documents of directors and shareholders
- Proof of registered office address
- Business plan (if applicable)
This process typically completes within 1–2 business days via the Companies Registry’s e-Registry platform, subject to document accuracy and due diligence clearance.
4. Open a Bank Account
Set up a corporate bank account to handle investment and operational transactions. The process usually takes 2–4 weeks, depending on the bank’s due diligence checks and documentation requirements.
5. Tax Registration with the Inland Revenue Department
Register the family office with the Hong Kong Inland Revenue Department (IRD) for business registration and profits tax. This ensures compliance and allows the office to benefit from the city’s family office tax concessions.
6. Hire at Least Two Full-Time Employees
These professionals can include family members if they meet qualification standards. The office must also maintain annual local operating expenses of at least HKD 2 million to qualify for FIHV tax concessions.
7. Establish a Family Charter
Develop a family charter that outlines the family’s shared values, governance framework, and long-term legacy goals. This document helps align generations, mitigate conflicts, and guide strategic decision-making.
8. Develop an Asset Management Strategy
Define a tailored investment strategy to manage and grow the family’s wealth. This may include real estate, private equity, securities, or alternative assets. Structuring investments through trusts or holding vehicles can optimize tax efficiency and support succession planning.
Practical Considerations For Family Offices
Setting up a family office in Hong Kong goes beyond incorporation and tax incentives. Long-term success depends on navigating regulatory obligations, establishing robust governance, and securing the right advisory support. Families must also anticipate common challenges and put strategies in place to overcome them.
Compliance and Regulatory Obligations
While single family offices (SFOs) are generally exempt from Securities and Futures Commission (SFC) licensing, they must still comply with Companies Registry filings, Inland Revenue Department tax requirements, and employment laws. For those managing Family-owned Investment Holding Vehicles (FIHVs), meeting the conditions for tax concessions—such as employing two qualified staff and maintaining HKD 2 million in annual expenses—is critical. Regular audits and transparent reporting help safeguard compliance and protect the family’s reputation.
Importance of Governance and Succession Planning
Effective governance ensures alignment across generations. A family charter and well-defined decision-making structures can minimize conflict, clarify roles, and preserve core values. Succession planning is equally vital, as Asia undergoes one of the world’s largest wealth transfers. Establishing a clear succession framework helps prepare the next generation for leadership and ensures the smooth transition of wealth and responsibilities.
Role of Advisors: Legal, Tax, and Investment Professionals
Engaging professional advisors provides the technical expertise needed for sustainable operations. Legal advisors assist with structuring entities, drafting charters, and estate planning. Tax specialists optimize global tax efficiency while ensuring compliance with Hong Kong’s regulatory framework. Investment professionals design strategies that balance wealth preservation with growth. A multidisciplinary advisory team ensures the family office adapts to market shifts and evolving family needs.
Common Challenges and How to Overcome Them
Family offices often face challenges like generational conflicts, talent retention, rising compliance costs, and market volatility. These can be mitigated through:
- Strong governance frameworks to resolve disputes.
- Competitive compensation and career development for professionals.
- Outsourcing non-core functions to trusted third parties.
- Diversified investment strategies to reduce risk.
By addressing these practical considerations early, families can position their Hong Kong family office as a resilient, future-ready platform for wealth preservation and growth.
Conclusion
Hong Kong’s strategic location, robust financial infrastructure, and favorable tax regime make it an ideal hub for family offices, offering unparalleled access to Asia’s markets and a high quality of life. With supportive government policies, including tax concessions for Family-owned Investment Holding Vehicles, and a rapidly growing family office sector, opportunities abound for families and UHNWIs seeking efficient wealth management and intergenerational legacy planning. Working with experienced local advisors can ensure a smooth and compliant setup, enabling families to fully leverage Hong Kong’s advantages for long-term growth and preservation of wealth.
How FastLane Group Can Help
Setting up a family office in Hong Kong can be complex, but FastLane Group simplifies every step. We provide end-to-end support, including company incorporation, legal structure advice, registration with the Companies Registry, bank account setup, tax planning, compliance with FIHV incentives, and hiring qualified staff. Our experts also assist in establishing governance frameworks and tailored investment strategies, ensuring your family office operates smoothly and efficiently.Speak with FastLane Group today to explore how we can structure and establish your family office in Hong Kong — efficiently, compliantly, and strategically.
