Family Office Setup Services
Defining the Modern Family Office
A Family Office (FO) is a dedicated private wealth management entity established by Ultra-High-Net-Worth Individuals (UHNWIs) to centralize the day-to-day management of family assets, legacy planning, and philanthropic endeavors. While Multi-Family Office (MFO) serves several unrelated families under one professional umbrella, a Single-Family Office (SFO) is a bespoke vehicle designed exclusively for the needs of one family, offering the highest degree of privacy, control, and customization over global investments.
Hong Kong: Asia’s Leading Wealth Management Stronghold
Hong Kong remains one of the most competitive global cities for business and wealth preservation. Its appeal lies in a “low cost, high efficiency” environment where institutional foundations encourage growth. As of mid-2025, Hong Kong ranked second globally in its concentration of UHNWIs, reinforcing its status as the primary destination for capital looking to bridge the gap between the East and the West.
According to statistics, there were 3,380+ single-family offices, while managing approximately $35 trillion (US$4.5 trillion) in assets, operating in the city as of year-end 2025—a growth of more than 25% over the preceding two years.
How We Empowers Your Legacy
Navigating the complexities of wealth governance requires a bedrock of regulatory integrity. ComplianceOne is a licensed Trust and Corporate Service Provider (TCSP) under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Licence No. TC007463).
As a leading regulatory compliance firm, we provide a “one-stop” solution that bridges the gap between family intent and regulatory reality. We offer professional Company Secretarial Services and Regulatory Advisory as value-added components of our core mission: supporting financial institutions and private families in meeting their corporate compliance needs with unmatched professionalism, efficiency, and discretion.
Why Hong Kong
Hong Kong offers a unique and compelling environment for family offices, characterized by a rare combination of institutional stability, market agility, and global connectivity. Operating under the “One Country, Two Systems” framework, the city serves as the primary gateway between the East and the West, providing a secure and predictable platform for ultra-high-net-worth individuals to manage their global legacies. With its sophisticated financial infrastructure and deep talent pool, Hong Kong remains the natural choice for families seeking to optimize their wealth preservation strategies.
The Six Pillars of Hong Kong’s Competitive Advantage
1. Strategic geographical location | Located in the heart of Asia, Hong Kong forms a 24-hour continuous trading system with global financial centers such as New York and London. Adjacent to mainland China, Hong Kong, with its extensive geographical, cultural, and linguistic connections, serves as an indispensable gateway for investors to access the world’s most dynamic and growing markets. |
2. Simple and low-tax system | As a bastion of free trade, Hong Kong maintains an environment without any restrictions on capital inflows or outflows. This absolute freedom of capital flow ensures that family offices can flexibly adjust their investment strategies globally and complete transaction settlements with maximum efficiency and zero administrative friction. |
3. The world’s freest economy with no capital controls. | As a bastion of free trade, Hong Kong maintains an environment without any restrictions on capital inflows or outflows. This absolute freedom of capital flow ensures that family offices can flexibly adjust their investment strategies globally and complete transaction settlements with maximum efficiency and zero administrative friction. |
4. A robust legal system | Hong Kong’s legal system, rooted in the common law tradition and possessing an independent judiciary, provides unparalleled security for private property and trust structures. This legal clarity forms the cornerstone for building complex intergenerational succession plans and charitable foundations. |
5. A mature financial hub | Hong Kong boasts one of the world’s most liquid stock markets and is a leading hub for green finance, private equity, and venture capital. This market depth enables family offices to participate in high-value IPOs and access a wide range of alternative investment opportunities across various asset classes. |
6. World-class professional services and a globally experienced workforce | Hong Kong boasts an elite ecosystem of legal, accounting, and compliance professionals who are well-versed in the intricacies of family office governance. This concentration of global expertise ensures that families receive sophisticated professional support when navigating complex cross-border regulatory environments. |
Simple and Low Tax System in Hong Kong
Hong Kong maintains one of the most competitive and transparent tax frameworks globally, designed to maximize capital preservation and operational efficiency for family offices. The system is characterized by its territorial principle—taxing only income sourced within Hong Kong—and a complete absence of the hidden layers of taxation found in other major financial jurisdictions.
The Three-Pillar Tax System
Unlike jurisdictions with complex tax codes, Hong Kong simplifies its revenue model into three primary direct taxes, bolstered by generous allowances:
- Two-Tiered Profits Tax: To support business growth, corporations are taxed at only 8.25% on the first HK$2 million of assessable profits. Profits exceeding this threshold are taxed at a flat rate of 16.5%.
- Salaries Tax: Personal income is taxed at a competitive standard rate of 15%, ensuring the city remains a magnet for top-tier global talent.
- Property Tax: Income derived from the letting of properties in Hong Kong is subject to a flat rate of 15%.
Strategic Tax Exemptions for Wealth Management
To further solidify its position as a global wealth hub, Hong Kong has implemented specific exemptions that directly benefit family office investment strategies:
- Comprehensive Profits Tax Exemptions: Both onshore and offshore privately offered funds are eligible for profits tax exemptions on “specified assets.” This applies regardless of the fund’s structure, size, or purpose, provided standard exemption conditions are met.
- Enhanced Qualifying Debt Instrument (QDI) Scheme: To encourage bond market participation, all interest income and trading profits derived from QDIs issued on or after April 1, 2018, are exempt from profits tax, irrespective of their maturity period.
- ETF Stamp Duty Waiver: To enhance liquidity in the Asia-Pacific’s leading ETF market, Hong Kong waives all stamp duty on the transfer of ETF shares or units, reducing the friction of diversified portfolio rebalancing.
The “Zero-Tax” Advantage
A defining feature of Hong Kong’s appeal is the categories of taxation that it does not impose. This allows for the seamless compounding of wealth across generations:
Tax Category 稅務種類 | Tax Rate 稅率 |
Sales Tax / VAT 銷售稅 / 增值稅 | 0% |
Withholding Tax (Interest/Dividends) 預扣稅 (利息/股息) | 0% |
Capital Gains Tax 資本增值稅 | 0% |
Tax on Dividends 股息稅 | 0% |
Estate / Inheritance Tax 遺產稅 / 繼承稅 | 0% |
Do you need a licence to operate a Family Office?
In Hong Kong, there is no single “Family Office Licence”. Instead, the regulatory framework managed by the Securities and Futures Commission (SFC) is activity-based. This means your licensing obligations depend entirely on the specific services your office performs and whether those activities fall within statutory “carve-outs.”
The core principle is simple: If your family office operates as an internal unit or a private vehicle managing its own family assets without providing services to third parties, it generally falls outside the scope of the licensing regime.
When a Licence is Generally NOT Required
Most Single-Family Offices (SFOs) can be structured to avoid SFC licensing by utilizing existing exemptions. Typical scenarios include:
A) Internal Management via Trust: If a family appoints a trustee to hold family assets and the trustee operates a family office as an internal unit to manage those assets, no licence is required. Because the services are not being provided to a “third party,” it does not constitute a “business” in regulated activities.
B) The Intra-Group Carve-Out: If the family office is established as a separate legal entity wholly owned by the same trustee or holding company that owns the family assets, it may qualify for the intra-group carve-out. This allows a private company to manage the assets of its group (parent/subsidiary) without being licensed for Type 9 (Asset Management) regulated activity.
When a Licence is Required
Licensing becomes mandatory when the family office begins to operate as a commercial venture or serves multiple unrelated families.
- C) Trust Company & TCSP Requirements: While a family office under Example A might not need an SFC licence, the entity acting as the trustee must hold a Trust or Company Service Provider (TCSP) Licence under the AMLO (Cap. 615) to provide trustee services in Hong Kong. For more details on establishing this structure, please refer to our Trust Company Registration services.
D) Multi-Family Offices (MFOs): If a family office provides investment advice or management services to “clients” who are not part of the same corporate group (e.g., serving multiple families), it is conducting a business. This typically requires an SFC Type 9 (Asset Management) licence. To understand the requirements for personnel, capital, and compliance, visit our guide on SFC License Application.
Summary of Regulatory Logic
監管邏輯總結
Feature
項目 | Single-Family Office (SFO)
單一家族辦公室 | Multi-Family Office (MFO)
聯合家族辦公室
|
SFC Licence
證監會牌照 | Usually Exempt
通常獲豁免 | Required (Type 9)
必須持有 (第 9 類受規管活動)
|
TCSP Licence
信託或公司服務提供者 (TCSP) 牌照 | Required (if acting as Trustee)
必須持有 (若擔任受託人)
| Required (if providing company secretary or trust services)
必須持有 (若提供公司秘書或信託服務)
|
Regulatory Objective
監管目標 | Self-management
自主管理 | Investor Protection
投資者保護 |
Key Processes for Family Office Setup
The procedure for establishing a family office varies significantly depending on your business model. Single-Family Offices (SFOs) generally follow a standard corporate incorporation path, whereas Multi-Family Offices (MFOs) must prioritize the rigorous SFC licensing process.
Strategic Setup Paths
- For Single-Family Offices (SFO): The process focuses on corporate structuring and ensuring the entity remains within the statutory carve-outs. If no regulated activities are performed for third parties, the focus remains on legal incorporation and tax compliance.
For Multi-Family Offices (MFO): Because you are managing assets for multiple unrelated families, the primary milestone is obtaining the necessary SFC Licences (usually Type 9) before commencing operations.
The 5-Step Execution Roadmap
To ensure a successful launch, we break down the establishment into five critical steps:
Defining Architecture and Governance | Determine the best legal instrument based on the family’s needs—usually a limited liability company or a trust structure. At this stage, you must also define the roles of the family council and investment professionals. |
Business registration and business registration | Choose a unique company name and register the legal entity with the Hong Kong Companies Registry . This includes obtaining a Business Registration Certificate (BRC) and selecting a registered office address. |
Regulatory verification: China Securities Regulatory Commission (CSRC) has granted exemptions or licenses. | Single Family Office (SFO) : Formal verification of whether the structure meets the specific “family office” exemption clauses to ensure that no license is required. Joint Family Office (MFO) : Initiate the application process for a Securities and Futures Commission (SFC) license, including appointing a Responsible Officer (RO) and meeting the minimum capital requirements. |
Operation onboarding and bank account opening | Establish a registered address and record storage location. Simultaneously, connect with virtual asset-friendly banks or institutional banks to establish operational accounts and conduct asset transfers under robust internal controls. |
Tax and Compliance Implementation | Ensure full compliance with the Inland Revenue Department (IRD) regulations. This involves structured tax planning to secure family office tax credits and maintain ongoing company secretarial and anti-money laundering (AML) records. |
What ComplianceOne can do for you
ComplianceOne serves as your essential bridge between family legacy and regulatory integrity. We provide a comprehensive “one-stop” solution that integrates high-level regulatory advisory with meticulous corporate governance. By handling the complex administrative and compliance burdens, we allow family principals to focus exclusively on their core mission: the stewardship and growth of generational wealth.
I. Company Secretarial Services | We manage the entire lifecycle and administrative health of your family office, providing a single point of contact for all legal requirements: 1. Corporate Establishment and Address: Register a company in Hong Kong or offshore (British Virgin Islands, Cayman Islands, Samoa), provide a registered office, and handle official correspondence. 2. Legal compliance: Prepare and maintain a register of significant controllers (SCR), act as a local designated representative, and file annual returns. 3. Business maintenance: Maintaining registers (register of directors/members), preparing meeting minutes, and handling various business changes (changes in name, directors, share allocation, or registered address). 4. Certification and Taxation: Providing Certified Transmitted Certificates (CTC), Apostille services, and preparing profit tax and employer tax returns. |
II. Applying for licenses and establishing a dedicated structure | For families requiring more complex regulatory structures, we offer end-to-end consulting and application support: 1. Securities and Futures Commission (SFC) License: Provides comprehensive guidance for joint family offices (MFOs) or single family offices (SFOs) that conduct regulated activities. 2. Trust and TCSP Solutions: Providing advice on establishing Hong Kong or offshore family trusts as asset holding instruments. |
III. Internal Control and Operational Support | We build an operational framework to protect your family office from internal and external risks: 1. Governance Structure: Advise on the establishment of a family trust and draft investment management agreements. 2. Human Resources and Mobility: Providing professional recruitment, work visa support, and advice on executive compensation structures. 3. Business Operations: Outsourcing of personnel, payroll management, and drafting of director service contracts. |