Trust funds in Hong Kong
A trust fund in Hong Kong is set up and managed according to the Trust Law Ordinance, the Trustee Ordinance, the Companies Ordinance and elements of common law.
A company incorporated in Hong Kong
can act as the trustee
provided that it meets certain requirements regarding its share capital, its company objectives and the possibility to fulfill its obligations.
Registering a trust fund in Hong Kong
There are no special requirements for companies that act as trustees in Hong Kong
to obtain a special licence
. However, only another registered trust company
will be able to be appointed by the court as a trustee
or apply for probate or administration.
Trustees in Hong Kong can appoint agents, insure the trust property against risk, receive remuneration if they act as a trustee in professional capacity (in certain cases) and appoint nominees or custodians, as necessary. They also have the power to raise money by sale or mortgage but this does not apply for trustees of property owned for charitable purposes.
Applications for registration as a trust company
are made in writing and submitted to the Registrar of Companies
. The application must be accompanied by the company director’s statement of compliance, an application fee and a fee for the issuance of the Certificate of Registration as a Trust Company
The family trust in Hong Kong
Trust funds are sometimes used as a method of preserving a family business and solving family inheritance issues. This is just the first step in a long line of good practices small business owners can use to ensure that their company survives throughout generations. Together with a trust fund, families can also use estate and succession planning to secure their assets.
Whether it is used for strict business purposes or for helping secure the family assets, a trust fund in Hong Kong is an investment vehicle that can be useful for many investors.
Contact us for more information on tax planning, tax minimization
and other issues.