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60 Second Snapshot'

Shareholder in the Company Employing You? What the Hong Kong Immigration Department Think…

May 1st, 2012

Posted by / in 60 Second Snapshot, Employment Visas, Investment Visas / 4 responses


 

PRACTICE UPDATE: How the content must now be read in light of current ImmD policy:

The central warning of this piece—that the Hong Kong Immigration Department readily “looks through” corporate structures to dismantle any notion of “visa self-sponsorship”—carries vastly more severe consequences under the upgraded regime. Historically, when ImmD identified an employment visa applicant as holding substantial or controlling equity, case officers would pierce the corporate veil and redirect the file to be assessed under the relatively forgiving discretionary standards of an entrepreneur visa. Under the post-April 2026 assessment standards aligned with TTPS Category A operational baselines, being reclassified as an entrepreneur is fatal to asset-light, early-stage, or boutique founder setups: it instantly subjects the sponsoring entity to mandatory institutional prerequisites—requiring HKD 1.5M to HKD 2.0M in deployed liquidity in a local corporate bank account, an executed commercial lease with dedicated physical “four walls,” and 2 to 3 local permanent residents on active, MPF-compliant payroll. Attempting to mask an entrepreneurial venture as a standard employment sponsorship will no longer result in a manageable administrative diversion, but in swift, summary requisitions and outright refusal.

There really is no such thing as visa self-sponsorship if you are an entrepreneur seeking permissions to join in your own business in Hong Kong. You either work for an independent third party employer, or you are working for yourself (or possibly in partnership with one or 2 others). The Immigration Department will look through your efforts to mask the shareholding.

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The Hong Kong Visa Geeza (a.k.a Stephen Barnes) is a co-founder of the Hong Kong Visa Centre and author of the Hong Kong Visa Handbook. A law graduate of the London School of Economics, Stephen has been practicing Hong Kong immigration since 1993 and is widely acknowledged as the leading authority on business immigration matters here for the last 24 years.

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