By Family Office Institute Hong Kong (FOIHK) · Published: 2026-07-30
A family office is a private organisation that manages the investments and affairs of a single wealthy family (a single family office, SFO) or of several families (a multi-family office, MFO). Hong Kong is one of Asia’s two leading locations to establish one — this guide covers the practical steps, thresholds and regimes, current as of 30 July 2026.
Step 1 — Choose your structure: SFO vs MFO
| Single family office (SFO) | Multi-family office (MFO) | |
|---|---|---|
| Serves | One family | Multiple unrelated families |
| Typical wealth level | Commonly US$100M+ (sometimes viable from ~US$30M) | Families of ~US$30M+ pooling resources |
| Control | Full family control | Shared platform, less bespoke |
| Cost | Highest (dedicated staff) | Shared across client families |
| HK licensing | Often none if serving only the owning family | Generally requires SFC licences (e.g. Type 9 asset management) |
Step 2 — Confirm Hong Kong is the right base
Hong Kong offers a territorial tax system with no capital gains tax, no VAT/GST and no estate duty; deep capital markets; and direct access to Mainland China. Momentum is strong: over 200 family offices have established or expanded in Hong Kong with InvestHK’s assistance, and the FSTB targets at least 220 more between 2026 and 2028. For a full comparison with the main alternative, see Hong Kong vs Singapore for family offices.
Step 3 — Structure for the FIHV tax concession
Hong Kong’s flagship incentive is the Family-owned Investment Holding Vehicle (FIHV) regime: eligible FIHVs managed by a single family office in Hong Kong pay 0% profits tax on qualifying transactions. The headline conditions:
- Minimum assets under management of HK$240 million (≈ US$30M)
- At least 2 qualified full-time employees in Hong Kong
- At least HK$2 million in annual operating expenditure in Hong Kong
- Central management and control exercised in Hong Kong by the single family office
Details and covered asset classes: FIHV regime guide.
Step 4 — Consider fund vehicles
Families pooling assets often use Hong Kong’s fund structures: the Limited Partnership Fund (LPF) (available since 2020, popular for private equity-style holdings) and the Open-ended Fund Company (OFC) for more liquid strategies.
Step 5 — Team, licensing and operations
- Team: a lean SFO starts with an investment lead, a finance/operations lead and outsourced advisers; the FIHV regime sets the 2-employee floor.
- Licensing: a genuine SFO serving only its owning family generally does not need an SFC licence; an MFO advising external families generally does (Type 9 and possibly others). Take Hong Kong legal advice on your specific facts.
- Residency: principals relocating may consider the New Capital Investment Entrant Scheme (New CIES) for investment-based residency; the 2025 Policy Address lowered the residential property threshold to HK$30 million.
Realistic timeline
From decision to operating family office, families should plan for roughly 3 to 9 months: structuring and tax advice first, then entity setup, banking and custody, hiring, and finally FIHV elections and compliance calendars.
How FOIHK helps
FOIHK provides professional training to individuals within the family office and related industries — see Education & Research, or contact us.
Last updated: 2026-07-30