For decades, Hong Kong has stood out because of its unique economic model. For a jurisdiction without agricultural land or mineral resources, the options are indeed very limited. It opted for a pure economic based model. With such models, a government comes out to support as many businesses as possible in order to raise more taxes and grow.
One would expect that Hong Kong, as an economic-based jurisdiction, approves very many investment visas. But, the reverse is actually true. The administration only approves about 250 investment visas every year compared to about 1200 visas approved about 8 years ago under the previous Capital Investment model.
Though Hong Kong Immigration Department (HKID) does not provide direct statistics on the approved or declined investment visas, the reality is that only a few meet the qualifications. Even with these minimal approvals, foreign nationals come in large numbers to take advantage of the numerous opportunities in Hong Kong. Some visit immigrations departments to apply for startups while others opt to join the already existing companies.
How to apply for a Hong Kong Investment Visa?
The HKID wants to understand well about the investment you are bringing. The focus is ensuring the venture will contribute positively to the economy. This has to be demonstrated through the business structure, the balance sheet, and the number of staff who will be employed in the enterprise.
In many cases, Hong Kong administration targets netting well-established organizations that want to extend their operations in the jurisdiction. This means that the business will not have capital flow problems especially for the first 6-18 months when it will be setting down.
While the Hong Kong business ecosystem is very attractive, it is also very complicated. With a lot of businesses trooping to make their way, the competition is very tight. Therefore, Hong Kong administration prefers approving investment visas for entrepreneurs who have been in the jurisdiction for more than 3 years.
For Hong Kong, the main objective is looking at the proposed enterprise to gauge the actual potential. They prefer allowing businesses that have huge potential for growth as opposed to accepting every application and suffer mass failure in coming years.
Therefore, you need to be adequately prepared, consolidate ample funds, and be ready to demonstrate that the enterprise will make a positive impact on the Hong Kong economy.