Hong Kong Visas Made Easy

Will Performance-Based Equity Compensation Suffice Instead Of A Cash Salary For A Hong Kong Employment Visa?

Posted by The Visa Geeza / in Employment Visas, Investment Visas, Your Question Answered / 2 responses

To what extend the salary can be replaced with performance-based equity compensation in case of a Hong Kong employment visa?

No one has asked me this type of question about compensation for employees for about 17 years now so I’m grateful to the questioner for raising it as she did.

QUESTION

I have successfully registered a business and been awarded an investment visa in Hong Kong.

The company is a start up with limited capital but big plans.

I have identified an individual I’d like to employ, have no doubt he would pass the approvability test, and don’t expect to have issues around quotas.

However my business cannot yet afford to pay a meaningful salary.

I’d like to compensate the individual with equity until such time as the business is generating enough revenue to pay market salaries – a situation both parties are completely happy with.

Is there any ability to sponsor an employment visa given this arrangement?

ANSWER

What a truly excellent question. And I’m sure that most entrepreneurs that have successfully secured an investment visa might at some stage look for the assistance of a third party foreign national to come into Hong Kong to assist them in their plans, and are obviously looking at an equity for compensation arrangement if that will in fact pass muster with the immigration department.

So the essential answer to the question is that yes, it is possible to have equity as a component for the compensation instead of salary, but it must not replace the salary under the General Employment Policy. The approvability test is effectively meaning that the Immigration Department are looking for a basic salary, and that basic salary should come in at the minimum levels, give or take HKD16,000 a month.

So if the value of this time is to be compensated in such a way that anything over the HKD16,000 a month is going to be reflected in an equity grant, then the Immigration Department should buy into that. So probably without too many questions asked on the basis that it’s properly documented and for all practical purposes, the party that’s receiving the equity grant is being compensated ostensibly for the professional nature of the contribution that he’s making.

So ensure that there’s a basic salary and anything above that compensated with equity grant should be fine. Of course, hanging above all of this writ larger were is what the Immigration Department will make of the application when it comes in. Given that, you’ve, I assume, just recently had an investment visa approved, did the potential for this engagement of this foreign national was it reflected in the representations that were made to the Immigration Department as part of your investment visa application? So will this come as a surprise to them or was it anticipated at all times? And how far along have you actually been able to progress your business since the fact of your investment visa approval in accordance with what the Immigration Department were expecting of you when they granted your approval.

So you need to look at where you are in the business,in addition to the individual special skills, knowledge and experience of Elliot and not really available in home to understand how the Immigration Department might respond to this questions such as, you know, have you recruited anybody else locally or is in fact this your first employee?

And as I say, if it is your first employee, was it anticipated in the business plan that the department saw from you originally? So take his application in the round when you’re considering structuring your argument, but also anticipate that as long as he’s getting the basic salary of about HKD16,000 a month with, the balance of his compensation being reflected in an equity grant it should be fine. I don’t imagine that you have too many problems. Okay.

I hope this helps.

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Is There A Minimum Number Of Days You Need To Be In Hong Kong In Order To Maintain Your Investment Visa Status?

Posted by The Visa Geeza / in Employment Visas, Family Visas, Investment Visas, Long Stay & PR, Special Programmes, Your Question Answered / 4 responses

Hong Kong is a small place with borders on our doorstep so how much time do you need to be physically in Hong Kong to retain your Hong Kong investment visa?

QUESTION

I would like to know, if I am able to hold a visa in Hong Kong, then what is the minimum time per year I need to stay in Hong Kong to still qualify as a resident?

I travel a lot, but am looking to set up a business in Hong Kong and would like to become a resident in Hong Kong but am afraid I might be out of the country in large periods of time.

Thanks

ANSWER

Really good question, this one. And I think you might be surprised at the answer in actual fact. As part of an application to secure a residence visa, in order to establish a business in Hong Kong, you need to go through the processes of showing you can make a substantial contribution to the economy of Hong Kong and get yourself a business investment visa.

And, at the time that you make the application, there’s no need to disclose to the Immigration Department exactly how much time you think you will be spending inside Hong Kong and how much time you think you’ll be spending away from Hong Kong. So the emphasis at the point of application should be on passing the approvability test.

Therefore, assuming you get approved, if you then go on to spend the majority of your time outside of Hong Kong, this doesn’t need to be a preclusion to getting your extensions. As you go through the one, two to three year pattern extension process after your initial approval, so long as you’ve got a really good business reason for being away from Hong Kong, as long as you have been.

Upon any review of your business undertaken as part of the investment visa extension exercise, you can clearly demonstrate to the Immigration Department’s satisfaction that you are indeed making a substantial contribution to the economy of Hong Kong. So, with the investment visa, indeed, for that matter, all residence visas, you must demonstrate that you have a need for the visa, and that is that you intend to be genuinely resident in Hong Kong. And if you can satisfy the Immigration Department about your genuine need, the question of time spent inside and also away from Hong Kong will really only present itself as an issue for you for deep consideration at the seven year mark when you’ve been continuously an ordinary resident in Hong Kong for not less than seven years, when you make your application for permanent residency, seeking to secure the right of abode, because the test for the right of abode says that any absences from Hong Kong in that seven years, either of a longer or short duration, must have been of a merely temporary nature, as evidenced by what you leave behind to return back to at the end of each temporary stay abroad.

So typically, so long as you’ve got a genuine need to be resident and you’ve got a really good excuse or reason for why you’re spending a lot of time away and you’re maintaining the qualifying criteria all throughout the seven years that you, in this case, hold your investment visa, the time spent away shouldn’t represent itself as a problem.

However, come time to secure permanent residency, you will probably have a lot to answer for; and whilst it doesn’t suggest that automatically you might not get permanent residency, the analysis of what you’ve been doing while you spent all that time away from Hong Kong during those seven years will very much come into play.

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Can I Study Then Get Married All Whilst Holding A Hong Kong Employment Visa Sponsored By A Company I No Longer Work For?

Posted by The Visa Geeza / in Employment Visas, Long Stay & PR, Your Question Answered / 4 responses

Life in Hong Kong throws up many new opportunities and this question seeks to understand the implications for 7 years continuous residency in respect of an eventual right of abode application where an overall switch over in life plans sees a lady intending to relinquish her employment visa for a student or dependant visa …

QUESTION

I am a Canadian citizen living in HK. I have an employment visa and want to leave my job. My fiancee (Canadian citizen) has an employment visa and we will be married in 10 months.

1. Can I leave my job (my employment visa has been extended until 2014), stay in HK on my employment visa until the wedding, and then transfer my visa to a Dependent visa linked to my husband?

2. Will this 10 month gap of non-employment, (even though I have 2 valid years left on the employment visa) count as a break in the 7 year continuous living requirement for permanent residency? I will remain in HK.

3. Will a dependent visa still count towards permanent residency?

4. Does permanent residency need to come from only one type of visa, or can it come from multiple visas?

5. Is there any benefit to having an employment visa over a dependent visa for permanent residency or privileges as a HK resident?

6. Can I attend a HK based university under the employment visa or must I change the visa to a student visa?

7. Will the time between the date of resignation and the beginning of my student visa (if I choose to do this, possibly 4-6 months) break the continuous living requirement for permanent residency?

ANSWER

I really love it when questions like this are laid out so logically and sequentially because I can just get to the height of the question without worrying too much about the facts to ensure that my advice is as accurate as it can be. So, cracking on number one question, the answer is yes. The moment you stop working for your current employer, your ability to continue to work in Hong Kong ceases at the point of your employment termination, but the privilege to resign continues on.

So, as long as in that time you’re maintaining all the vestiges of settlement in Hong Kong, then for all practical purposes the fact that you are not going to be working whilst you have an employment visa with a limited stay that’s still valid should not break your continuity of residence, specifically or particularly if you’re going to be preparing for nuptials in that time.

So, yes, you can transfer from employment visa to a dependent visa and expect that it’s not going to break the continuity of residence, which effectively answers your second question, as long as, as I said, you can show that all throughout this time you have been continuingly engaged in activities that can be said to suggest that you are settled in Hong Kong, and, as I said, preparing for your nuptials to a Hong Kong resident is certainly good evidence of this. So, yes, you’ll be fine in that regard.

The time spent as a dependent visa holder will definitely count towards permanent residency, so long as you’re going from your employment visa into your dependent visa back to back any state of administrative flux in relation to your change of immigration status should not preclude you from qualifying/having that time qualify under the seven year rule.

In reply to your question four – effectively you need a residence visa, and that residence visa can be reflected in any kind of visa other than visitor or indeed any of the other categories, such as a foreign domestic helper or if you’ve been admitted under the supplementary labour scheme. People admitted under these programmes do not have the privilege of being able to count time spent as a whole holder of that type of visa for the purposes of continuous ordinary residence. So, yeah, going from one employment visa to a dependent visa is not going to be a problem for you.

I think I’ve answered the question five – if there’s any benefit in having employment visa or the dependent visa for permanent residence privileges of Hong Kong resident. No, it doesn’t make any difference. It’s all about the act of settlement.

In reply to your question number 6 – Well, under the employment visa, you’re entitled to join in a part time course of study. If it’s your intention to engage in a full time course of study, then you need to relinquish your employment visa and change to a student visa. So for all practical purposes, in your circumstances, time spent as a student, which would then subsequently adjust to dependent (once you’ve got the marriage to your fiance out of the way) all of that will count as good time for ordinary residence purposes when it comes to your right of abode application.

Subsequently, and finally, the answer to your last question is again no. As long as you can show that you’re engaged in the act of settlement or continuing engagement in the act of settlement throughout all of this time, then it will not break your continuous ordinary residence for the purposes of a right of abode application.

Problems only ever come into play with breaking continuous ordinary residence, if you effectively relinquish your residence visa status and don’t do anything about reinvoking it or reinstating it, I should say within a very quick period of time after it’s expired. But if you’ve got continuous back to back residence visas throughout all of this time, and the ordinary pattern of your life suggests that you have been settled in Hong Kong throughout all of this time and in fact, any absences from Hong Kong during this time have been of a nearly temporary nature, as evidenced by what you leave behind to return back to at the end of your temporary sojourn abroad. And at the time that you make your application for permanent residency, you can show that you’ve got back to back tenancy agreements or you’ve got residential accommodation arrangements in place, for example, such that you bought your own property. And you can show that as long as you can show that you’ve got your tax returns all in good order and that, for all practical purposes, you’ve got an obvious manifest pattern of normal continuous ornament residence in Hong Kong throughout those seven years. The plans as you set them out for me in your list of seven questions suggest that you won’t have any problems at all when it comes time to making your application proponent identity card.

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I Want To Live In Hong Kong With My Boyfriend – Is The Working Holiday Visa A Viable Option?

Posted by The Visa Geeza / in Special Programmes, Your Question Answered / 10 responses

Sometimes, the sun and the moon align beautifully on a set of circumstances to allow an unmarried couple to spend time together in Hong Kong when ordinarily visa circumstances conspire against them. Not on this occasion, however!

QUESTION

“Hi there,

I have just recently returned from Hong Kong to Canada where I am a citizen.

My boyfriend lives in Hong kong and I have travelled there 3 times in the past 2 years to see him only as a quick 2 week holiday each time.

Covid is a problem for us now obviously.

We frequently talk about me moving to hong kong to live together.

Obviously if I was to live in Hong Kong I would have to find work and have an income. I guess the reason for me sending you this message is to find out which is the best visa application for me to look into?  

I had hoped to maybe stay there for up to 1 year.”

ANSWER

In your situation, it would seem that the working holiday visa would be the ideal solution for you.

The working holiday visa is available to Canadian citizens as well as to a number of other different nationals, and the premise of the working holiday visa is to allow the holder a primary intention to holiday in Hong Kong and it’s available to you if you’re aged between 18 and 30 and that you can show sufficient proof of having – in the case of a Canadian, HKD15,000 in your bank account to fund your proposed stay in Hong Kong.

You also need to show that you have a return air ticket when you arrive and also that you have got medical and comprehensive hospitalisation and liability insurance in your name. On the basis that you can satisfy these requirements, you can get a working holiday visa.

The working holiday visa effectively gives you a twelve-month limit of stay in Hong Kong where you can come to work for up to four employers during your time in Hong Kong, with an absolute maximum of three month stay for each employer.

And there is a quota. So, you do have to get your application in good order each year, and the quota for Canadian citizen is 200.

Making the application is very straightforward: you can download the application form from the website – the requisite link is attached to this post on the blog so that you can know where to go for the information, you submit the application directly to Immigration Tower by post. NB, you must be in Canada at the time that you will file this application and you must be ordinarily resident in Canada at the time. But as you’re a citizen- as stated in your question, I don’t think that’s a problem.

Therefore, on the basis that there’s quota available and you can show that you’ve got the money and that you are applying whilst you’re in Canada and you’re ordinarily resident in Canada, I don’t see any problems as to you moving forward with a successful application for a working holiday visa.

It would certainly appear to be the suitable solution in your circumstances given that you only intend to stay for one year in any event; and certainly in that time, it will then allow you to get some relationships moving with employers and understand how Hong Kong operates from an employment perspective, and assuming that you qualify separately for an employment visa in due course, on the basis you can get yourself a job offer, then reason why you could entertain, subsequently, an application for a full employment visa in your own right, once your working holiday visa term has come to an end.

I think that’s a solution for you. All the best!

The Hong Kong Working Holiday Visa Information on the Hong Kong Immigration Department Website

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So, Just What Is The Deal With The Right To Land In Hong Kong Anyway?

Posted by The Visa Geeza / in Long Stay & PR, Your Question Answered / 45 responses

The right to land in Hong Kong impacts quite a number of people here but does not figure much in the general immigration scheme as it is not a status that you can apply for per se, nor is it an immigration status that you can acquire by descent.

The right to land in Hong Kong is available in certain situations which I discuss in the context of this question which popped into my Inbox first thing this morning (and I have assumed the questioner’s parents are Chinese citizens for the purpose of this question).

QUESTION

“Hi, I was born in Netherlands in 1974, but my parents are from Hong Kong. Will I still be able to apply for the right to land? “

ANSWER

In this discussion, we are focusing on the Right of Abode in Hong Kong rather than just land rights or immigration status. Since 1997, the concept of permanent residency has become important for individuals seeking to secure their Right of Abode in Hong Kong. A Hong Kong permanent resident, who possesses the Right of Abode, enjoys several benefits, including the right to land, freedom from any conditions of stay, protection against deportation, and the assurance of not being removed from Hong Kong. However, it is important to note that if a foreign national loses their Right of Abode, they can still obtain the right to land, provided they initially possessed it. The right to land continues to be relevant for certain British nationals who were resident in Hong Kong before 1997. Over time, most individuals who have lived continuously in Hong Kong for seven years since then have successfully obtained their Right of Abode. It’s significant to understand that your immigration status is often influenced by your family background, specifically your parents’ Right of Abode status at the time of your birth. For those in similar circumstances, I recommend checking the last link on this page for a detailed discussion on how to anticipate the immigration department’s response when applying for the Right of Abode based on your specific situation.

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Can A Newly Qualified Foreign National Permanent Resident Of Hong Kong Automatically Secure PR For His Parents Too?

Posted by The Visa Geeza / in Long Stay & PR, Your Question Answered / No responses

So, just what immigration options for parents accrue to a foreign national holding a Hong Kong permanent identity card?

QUESTION

Hi there!

 A foreign national became a permanent resident after many years study and work in Hong Kong.

Now he wants to sponsor his parents holding Canadian passports to become a P.R.

In Hong Kong too – any way to do that? 

How long will it take for the application? 

Thank you.

ANSWER

In Hong Kong there is no facility to automatically secure permanent residency for foreign nationals other than the process of undergoing seven years of continuous ordinary residency in Hong Kong. So notwithstanding the fact that there is a situation where an individual – foreign national, has recently secured permanent residency that in of itself is not going to parlay or translate into opportunities for permanent residency for any other family member automatically, other than for dependent children under the age of 21 who were born in Hong Kong whilst such a person was a temporary resident here.

In any event, in order to secure status to allow dependent parents to be residents in Hong Kong sponsored by a foreign national permanent resident, the only manoeuvre that’s available is to apply for dependent visas for the elderly parents, and elderly in that regard is over 60 years of age.

The application is relatively straightforward, but you need to show that there is dependency on the part of the parents, and that the sponsor can put food on their table and a roof over their head.

Once those dependent visas have been independently secured, those elderly parents will maintain their residency under dependent visa status throughout all of the seven years that follow the issue of the dependent visa in the first place, and at the end of that seven-year period they will be able to independently apply for permanent residency in their own right.

So, to answer your question, no ability for permanent resident foreign nationals to automatically undergo process to get permanent residency for any other supporting family members or accompanying family members, but there does exist a mechanism for elderly parents in this type of scenario to become permanent residents after seven years of holding dependent visas. I hope you found that useful.

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Can I Sponsor Myself For Freelance Work ‘On-the-Side’ Whilst Working For My Current Hong Kong Employment Visa Sponsor?

Posted by The Visa Geeza / in Employment Visas, Investment Visas, Your Question Answered / No responses

This is joining in a side business albeit in another name…and a solution for certain types of Hong Kong Employment Visa holders thinking about freelancing in Hong Kong

QUESTION

Info

-NZ Passport holder

-Working in Hong Kong for three years with an employer.

Hello

I would like to know how I would go about starting a business in Hong Kong. I would like to start a freelance business. I am worried about my visa with this if I sponsor myself.

Should I create my business now, and apply while I am with my current job to be safe?

ANSWER

This question really gives us an opportunity to discuss the possibilities of getting independent visa permissions for “freelance work” and, given the circumstances, as I understand them, the best possible way for you to bring about the outcome that you’re looking for, firstly, the thing to appreciate is that you presently have a Hong Kong employment visa sponsored by a third party employer.

If you wish to leave that employer and then go into business for yourself as a freelancer, as you state it, then you’re going to have to make an application for what’s known as a business investment visa. So you’ll be changing your category from sponsored employment through to business investment, and at that time you’ll have to show to the Immigration Department that you can make a substantial contribution to the economy of Hong Kong. Now, I’ve dealt with the elements of that approvability test elsewhere on the website, just do a search under business investment visas and you’ll find a lot of information about that.

The problem therein lies that you are going to be freelancer, which means it’s a one-man business, and such businesses normally are not in a position to make a substantial contribution to the economy of Hong Kong because there’s only one person ultimately going to be advantaged, that’s you as an individual freelancer.

So, I would urge you to look very hard and carefully at your plans to leave your employment and then go and start out working for yourself and making that application as a freelancer. Because unless you are in a position to create local employment opportunities, have a properly set up office and are particularly well resourced, you may find that the Immigration Department don’t buy into your argument and therefore you may not get the appropriate approval that you’re looking for. So, that really is probably the riskiest part of the proposition, as I understand it.

You can, on the other hand, take another path where you effectively maintain your current employment and, with the written permission of your existing employer, you request the Immigration Department to approve an application from you to join in a side business; and in doing those freelance activities on the side, the Immigration Department will arguably give you the approval that you’re needing. And, as I say, as long as you’ve got the permission of your current employer to be able to do that things should be okay.

So in summary, my best advice would be if you really are going into freelancing, in a sense, abandon the idea of being a self sponsored employee by getting a business investment visa.

I think it’s just probably too hard and possibly beyond your initial expectations of what you want to do commercially and how you go about earning a living and stick with the full time sponsored employment if it’s possible. Therefore, get the permission of your current employment visa sponsor to freelance on the side and then secure a business registration certificate as sole proprietor and then make an application to the Immigration Department for permission to join in the side business with your current sponsoring employer’s consent. That way you will be able to achieve your objectives, and at some stage in the future, you never know, your freelance business might grow to the point where you do need to create local employment opportunities and you are going to need independently a properly set up office and you might have the requisite resources in play, both financial and other commercial resources, to the extent that the time spent as a freelancer on the side could be a proving ground for a bigger application subsequently, where you would be able to pass the approvability test and show that you can make a substantial contribution to the economy of Hong Kong.

I hope you found that useful.

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