Making A Hong Kong Entrepreneur Visa Application – What’s Involved?

Posted by The Visa Geeza / in Investment Visas, Musing / 9 responses

How To Get A Hong Kong Entrepreneur Visa

Making ready for a Hong Kong entrepreneur visa (aka business investment visa) application? Read on.

PRACTICE UPDATE: How to read in light of current ImmD policy:

The foundational advice regarding the “Catch-22″—which historically encouraged in-country applicants and employees seeking a change of status to file right at the outset before significant trading to avoid working illegally—must be completely recalibrated against ImmD’s refusal to approve early-stage proposals. Because the department now explicitly bars the traditional “employee-to-founder” transition for asset-light, undercapitalized consultancies and demands fully mobilized operations (active commercial tenancy, active local payroll, and fully funded corporate accounts) prior to endorsement, filing at mere inception without established institutional backing invites summary rejection. Founders must now bridge this Catch-22 either by establishing institutional-grade operational footprints and deploying substantial capital through authorized local directors/representatives before entry clearance, or by qualifying through designated government-backed incubation schemes like Cyberport or HKSTP.

The Hong Kong Entrepreneur Visa – Many Aspire Yet Very Few Apply

Guess what?

You might be surprised to learn that, for an entrepreneurial driven economy such as ours, there are only comparatively few Hong Kong entrepreneur visas granted annually.

The 200-300 approvals recorded are very modest matched against the 25,000 work visas issued yearly and indeed, the 1,300 capital investment (CIES) visas which were typically granted in the years prior to Covid.

The CIES visa was cancelled in 2015 (yet is slated for re-introduction this year – 2023) and this reduced the number of visas issued on the basis of investment into Hong Kong.

The Number of Hong Kong Entrepreneur Visas Is Very Much Set To Rise

As the HKID don’t provide statistics on the amount of applications received, it does appear safe to say that the low number of entrepreneur visa approvals is less a suggestion of the interest of foreign nationals who want to create or join in a business in thus part of China but more a reflection of the reality that getting an investment visa approved is among the most challenging of all the HKSAR visa processes.

Even in spite of this, foreign nationals arrive in droves to take part in the wonderful business opportunities which the city has to offer and, naturally enough, the Director of Immigration doesn’t deter applications from folks to start up new, or join in existing, firms in the HKSAR.

The most significant difference between the 2 sorts of visa (CIES – coming again soon – vs Entrepreneur) lies in the character of the approvability tests and the basic issue of whether the candidate has got value at risk in the firm wanting to deploy his work in their business operations.

Some Applicants Try To Fudge The Entrepreneur vs Employment Visa Policy Delineation

Hence ImmD look closely at the shareholding structure of the company that applicant will be engaged in and, as a general guide, anything greater than a 10-15% stock holding position in the hands of the visa applicant will steer the case toward the applying of the more burdensome business investment visa approvability test rather than the work visa approvability test.

Covering up the shareholding to attempt to find a way around this general rule is laden with difficulty as the Immigration Department will peer under each nook and cranny in an attempt to completely understand the business ownership arrangements.

Consequently, the utilisation of nominees solely for immigration purposes isn’t advised. If the company is a totally new start up, a fully fledged plan for the business is mission-critical to visa approval.

Hong Kong Entrepreneur Visas Take Many Weeks To Process – Typically

Hong Kong entrepreneur visas often take between four and six months for formal approval to eventuate (compared with the maximum 6-8 weeks for out and out work visas) and the explanation for this is to permit the new business to produce early commercial results and avail the chance for ImmD to appraise if the business plan is a practical one as measured by new ‘facts on the ground’ ensuing right from the tangible implementation of business activities.

Real New Facts On The Ground Are Integral To Hong Kong Entrepreneur Visa Approval

Only very few Hong Kong entrepreneurs tend to be granted based merely on a paper plan; indeed such approvals are customarily limited to very well resourced organisation extending their operations into Hong Kong from overseas.

However,  where the business investment (entrepreneur) visa-applicant is in-country, sometimes as a visitor, though occasionally intending to change visa status from employment, the HKID expect to see the business moving forward before they will authorize a business investment visa.

The Catch 22 Facing the Hong Kong Entrepreneur Visa Applicant

This creates a Catch 22 situation: you can’t join in a business till the approval of ImmD is secured. You cannot secure the agreement of ImmD without showing contribution to Hong Kong. You cant show contribution to Hong Kong without joining in a business!

The Immigration Department is extremely well informed about this conundrum and are practical in their work -around.

Fundamentally, if you have already made an application for a business investment (entrepreneur) visa, they’ll close their eyes to the technical breach of conditions of stay implicit in running a brand new business before having had your visa application approved.

The danger lies in not having an application in the system.

Apply For Your Hong Kong Entrepreneur Visa Аs Soon As Your Intention To Reside Has Crystalized

So to provide yourself with protection from the danger of prosecution, you want to empower ImmD to take an early view of your activities and sign up for your Hong Kong entrepreneur visa right at the outset of your commercial endeavours not later on, after ‘its all moving forward’.

More Stuff You May Find Useful Or Interesting

One Man Business Investment Visa For Hong Kong – What’s Involved?

Hong Kong Business Investment Visas & Joseph Heller – What’s The Connection?

Hong Kong Employment Visa Self-Sponsorship – The Reality For Entrepreneurs Masquerading As Employees

The Hong Kong Visa D-I-Y Kit

Is There Such An Animal As A ‘Flexible  Working Visa’ For Hong Kong?

 

Check Out VisaGeeza.Ai

All Our Know-How : All Our Experience : Fully Interactive

100% FREE!

 

The 5 Key Factors Which Impact On Your Eligibility For A Hong Kong Employment Visa

Posted by The Visa Geeza / in 60 Second Snapshot, Employment Visas, Musing / 14 responses

Your Eligibility For A Hong Kong Employment Visa?

The 5 Factors  In Play For Eligibility For A Hong Kong Employment Visa

1 –  You need a credible sponsor

– this means, an established company which has been established for more than 2 years and which currently employs local staff, has offices and manifestly operates commercially in the HKSAR.

2 – Your job offer must be genuine

– the HKID are on the lookout for contrived employments for the purposes of assisting foreigners to secure residence and such arrangements usually stand out a mile as the Immigration Department are alert to this reality.

3 – You must obviously be qualified for the position

– and clearly in possession of special skills knowledge and experience of value to and not readily available in Hong Kong.

4 – Your terms of employment should be no less favourable

–  than those which would be extended to a local person if such were available to do the job instead of you.

5 – The value of the employment should be suitable for the position

– and subject to an effective minimum of approximately HKD200,000 per annum.

Eligibility For A Hong Kong Employment Visa In A Nutshell

Consequently, the job you have been offered should be suitable for you, cannot be a ‘cheap’ employment, can’t be related specifically to language or cultural affinity and the job offer itself genuine and your employer credible.

Eligibility For A Hong Kong Employment Visa – A Specific Red Flag

Where there is a new company seeking to serve as your sponsor, this is a red flag to the Immigration Department, as are situations where there is a ‘top heavy’ foreigner to local staff employment ratio, the emolument is on the lower end of the scale and where your ‘specialness’ is language or cultural affinity.

More Stuff  You May Find Useful Or Interesting

Your Employer Must Help You Get Your Working Visa For Hong Kong

Can I Come To Hong Kong As A Visitor, Find A Job,Then Change To An Employment Visa

Redundancy – The Process Pitfalls Of An Expiring Hong Kong Employment Visa

I’ve Lost My Job – What About My Employment Visa – Will I Get Kicked Out Of Hong Kong?

I Have Been Made Redundant By My Wife Is Working – Can We Swap Our Employment And Spouse Visas Around So I Can Become Her Dependant In Hong Kong?

 

Check Out VisaGeeza.Ai

All Our Know-How : All Our Experience : Fully Interactive

100% FREE!

How Important Are A Good Set of Financial Projections In A Hong Kong Business Investment Visa Application?

Posted by The Visa Geeza / in Investment Visas, Your Question Answered / 1 response

The Importance Of A Good Set of Numbers In A Business Investment Visa Application

Educating The Immigration Department is Your Responsibility

Applying for a business investment visa? ImmD expect to be able to take a view of a proposed new from 39,000 feet and for this, a good set of financial projections are expected to form part of a business investment visa application.

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

The classic advice in this article—that financial projections are merely examined “from 39,000 feet” to evaluate overall commercial plausibility rather than fine accounting details—must be discarded in favor of strict financial modeling. Case officers no longer treat financial tables as secondary narrative aids; under the alignment with TTPS Category A operational metrics, projections are subject to forensic scrutiny. The standard 2-year projection is replaced by a mandatory 3-year financial model that must tie directly to cleared capital reserves of HKD 1.5M–2.0M already sitting in a Hong Kong bank account. Unit economics must credibly support the ongoing overhead of an exclusive commercial lease and market-rate salaries with MPF contributions for 2 to 3 local staff across the entire operational horizon.

QUESTION

Does the Immigration Department look for forecasts for profitability and actually estimates of employee hiring?

I have written in my business plan a general outline of positions I intend to hire, and some initial support staff in the first year, but this is in a description format rather than a list.

Welcome your thoughts and many thanks!

TEXT ANSWER

Forecasts

The Hong Kong Immigration Department takes into consideration the future prospects of your business when evaluating applications for the Business Investment Visa. This means you need to provide forecasts for profitability, along with other important financial considerations. These forecasts should cover a period of three years and include details of potential hires, their expected salaries, and when they will be added to your team.

Template

While it is acceptable to outline your recruitment plans in your application, it is crucial to encapsulate the overall financial performance of your business in a comprehensive set of financials covering the next three years. To assist our clients in this process, we provide a standard template that can be used to create these financial projections.

Our template allows you to input all the necessary financial information, such as sales revenues, expenses, and projected profits for each year. Additionally, it provides a space for you to include details of anticipated hires, their job roles, and the timeframes in which they will be recruited. By utilizing this template, you will have a clear and professional presentation of your business’s financial outlook.

As part of this post, we are pleased to include the template for your convenience. You can use this template to create a comprehensive set of financial projections that will assist the Immigration Department in evaluating your application for the Business Investment Visa. We understand that this process can be complex and time-consuming, but we are here to support you every step of the way.

Painting A Good Picture

It is important to note that the Immigration Department primarily assesses the viability and potential success of your business when considering your application for the Business Investment Visa. This visa is designed to attract foreign investors who have the financial means and intention to establish or expand a business in the host country. Therefore, the financial projections you provide must demonstrate the profitability and long-term sustainability of your venture.

Last Words …

In conclusion, when applying for a Business Investment Visa, it is vital to include a set of comprehensive financial projections for the next three years. By utilizing our standard template, you can present a professional and well-structured forecast that showcases the potential success of your business. Our team is dedicated to assisting you throughout this process, ensuring that your application stands out and maximizes your chances of obtaining the visa.

 

Check Out VisaGeeza.Ai

All Our Know-How: All Our Experience: Fully Interactive

100% FREE!

More Stuff You May Find Useful Or Interesting

36 Months Sales Forecast And Cash Flow Projections Template

10 Must-Have Resources For Any Hong Kong Business Investment Visa Application

Relocating To Hong Kong For Work Or Business – The Business Investment Visa

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

If You Start A Company In Hong Kong Do You Always Need A Business Investment Visa In Order To Be Able To Own And Operate It?

 

PODCAST ANSWER

Podcast: Play in new window

Hong Kong Work Visa Rejection Reasons | When All Else Failed We Appealed to the Chief Executive | And Won!

Posted by The Visa Geeza / in Case Study, Employment Visas, Refusals & Appeals, VG Front Page / 14 responses

Hong Kong Work Visa Rejection Reasons?

If an application for a case Reconsideration has played itself out without the Hong Kong work visa rejection reasons being overturned, where does that leave you in the appeal process?

 

Hong Kong Work Visa Rejection Reasons – Until 1999 …

Until 1999, section 53 of the Immigration Ordinance was widely used as a means of final appeal for a large number of refused visa applicants as the mechanism allowed the applicant to remain in Hong Kong as a visitor pending the final review process which often took 12-24 months.

This liberal application of policy was almost inevitably abused.

It had the effect of enabling employment visa applications from people who really didn’t have much chance of satisfying the approvability test but came to Hong Kong as visitors, applied for a change of status while in Hong Kong, and then used the fact of their application pending as a means to secure a de facto extension to their visitor visa all throughout.

For some nationalities, particularly those from the subcontinent, this  manipulation of the processing and consideration mechanisms meant that often two to two and half years would pass before the entire application consideration process from initial submission through to final review report was finalized.

In this time, such applicants were physically present in Hong Kong and the temptation for them to breach their conditions of stay by taking up employment unauthorized by the Immigration Department was manifest.

Some might say the process was simply misused by the applicants.

Hong Kong Work Visa Rejection Reasons – Then Suddenly The Game Changed

Nevertheless, at a stroke, one day in 1999, the Immigration Department changed the policy and no longer extended the visitor visas to applicants who are undergoing section 53 review.

These had the effect of diminishing the role of section 53 considerably for disgruntled employment visa applicants and consequently tends not to play a significant part in the practice of Hong Kong Immigration advisers these days.

Hong Kong Work Visa Rejection Reasons – A Last Throw Of The Dice?

There is, however, the remote possibility of a final throw-yourself-at-the-feet-of-the-chief executive appeal as we have once in 30 years of combined practice had the opportunity to travel this route and was successful in the process.

It must be stressed, however, that there must be a substantial matter of public interest at stake and such an application should not be made lightly.

Frivolous applicants will simply not be entertained and will no doubt have an adverse impact on their immigration record.  At some stage, the Immigration Department will have fully played out their role in considering your application and it does inevitably come a time when the result really is final.

So, in the two years, just prior to the 1997 hand back to China, Hong Kong’s economy was booming.  These positive economic conditions naturally enough coloured the Immigration Department’s view of the world and impacted on how they viewed implementation of visa policy.

However, quite soon after the handover, Asia slipped into a deep economic crises led by Thailand and Hong Kong went into a serious slump as it played itself out.

In this time we had a client who was an operator of specialty bookshops in another Asian country.  This client’s operations were very large and they were investment-bank backed candidates for public listing in their home country.

Hong Kong Work Visa Rejection Reasons – What Is A ‘Bookseller’?

This client’s bookshops were revolutionary in how they retail books.  They display the books on the shelves in a non-traditional way and employ people to work in their shops who are experts in a particular field.  In fact a necessary condition of employment is that their employees have to read one book a week from the dedicated section of the shop that they service.  This enables staff to talk knowledgeably to customers and genuinely help them make the right book choice and, compared to traditional book retail was revolutionary, taking the region by storm – and Hong Kong was next.

In the beginning of 1997, our client opened their first of four initial outlets in Hong Kong and they were planning on a final total of 12 over a 3-year investment period and their business plan called for the creation of at least 150 new jobs in the HKSAR.

In the latter part of 1997, when the financial crisis was biting hard, our client had an employment visa application refused for one of their managers who was transferring to Hong Kong  from the home country operation to open a second shop in the HKSAR.

Upon review of the paperwork, it became apparent to us that the problem lay in the fact that the local Hong Kong staffer who had crafted the application had treated the case merely as an administrative one and had not made any effort to substantiate the argument within the context of our client’s business operations.

The job title of ‘bookseller’ for the manager as it was detailed on his letter of appointment, was actually not only an exercise in branding but also descriptive of a new definition which our client’s mode of retailing book represented for people who sold books.

So, we made a confident application for Reconsideration which was refused within two weeks.  We were dumbfounded as was our client.

We submitted a further Reconsideration which in and of itself was especially unusual. Two weeks later, no change in mind on the part of the Immigration Department.

In the meantime, our client was getting very upset.  His manager was due to oversee the opening of the new bookshop in three weeks and everything was a mess, books were arriving and were not being placed on shelves and new staff were unable to be trained.  Chaos reigned writ large and the client was seriously thinking that they would pull the rest of their investment from Hong Kong.

As for the posture of the Immigration Department, they were locked into the idea that a book-seller is a simple job that anyone local could do, and it was actually making it impossible for them to deliver on their investment plan –  and all this was happening at a time when Hong Kong was losing 5,000 retail jobs a week due to the economic downturn.

Hong Kong Work Visa Rejection Reasons – The Chief Executive Comes Good

When it became apparent that the Immigration Department wouldn’t budge we decided to appeal directly to the Chief Executive.

Long story short, the visa was approved within five days of having lodged the appeal!

More Stuff You May Find Interesting Or Useful 

Newcomers Guide To Getting A Hong Kong Employment Visa

Is It A Good Or A Bad Sign That The Hong Kong Immigration Department Keep Coming Back With Requests For Further Information?

My Hong Kong Employment Visa Application Has Been Refused – What Can I Do Now?

How To Engage The Hong Kong Visa Centre If Your Application Has Been Refused By The Hong Kong Immigration Department

How A Hong Kong Employment Visa Application Can Go Completely Wrong If You Don’t Know What You’re Doing

 

Check Out VisaGeeza.Ai

All Our Know-How : All Our Experience : Fully Interactive

100% FREE!

If I Stop Working for My Current Employer Will My Hong Kong Employment Visa Remain Valid?

Posted by The Visa Geeza / in Employment Visas, Your Question Answered / 4 responses

Will My Hong Kong Employment Visa Remain Valid If I’ve Lost My Job?

Help with my Hong Kong employment visa please! For the last few years I’ve been working for an American company with an American contract of employment. I am under an employment visa for this position and it was renewed a few months ago until late 2014.

The expiry date of my visa indicated on my passport is November 2014. I was laid off last December (after rejecting the offer of my employer to repatriate me to the US) and am now working out my notice period.

My employer indicated to me that he has to clear my taxes by the end of the notice period and that it will then also mean the end of  my employment visa.

However, I heard or read different things in such case, as in most of the cases, the employee will keep his visa valid until the expiry date indicated on the passport. But in any case, the employee cannot work for any other employer with this visa.

So am I guaranteed to keep my Hong Kong employment visa until the expiry date indicated on my passport ?

Thanks a lot

More Stuff to May Find Useful or Interesting

Can The Sponsor Of Your Hong Kong Employment Visa Hold Your Residence To Ransom?

The 7 Things To Tell Your Employer About Hong Kong Employment Visa Sponsorship

Redundancy – The Process Pitfalls Of An Expiring Hong Kong Employment Visa

I’ve Lost My Job – What About My Employment Visa – Will I Get Kicked Out Of Hong Kong?

I Have Been Made Redundant By My Wife Is Working – Can We Swap Our Employment And Spouse Visas Around So I Can Become Her Dependant In Hong Kong?

 

Check Out VisaGeeza.Ai

All Our Know-How : All Our Experience : Fully Interactive

100% FREE!

 

PODCAST ANSWER

 

Podcast: Play in new window

Are There Any Advantages To Being An Existing Resident Of Hong Kong When You Make An Application For An Investment Visa?

Posted by The Visa Geeza / in Employment Visas, Family Visas, Hadley Says…, Investment Visas / 25 responses

Existing Resident Of Hong Kong When You Make An Application For An Investment Visa?

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

Historically, this resource highlighted that several years of continuous residence as a GEP employee created substantial goodwill and a favourable discretionary backdrop when transitioning to an entrepreneur visa. Under current policy, this advantage has evaporated: the traditional “employee-to-founder” pathway has become one of the most heavily scrutinized transaction types. Corporate executives resigning from sponsored employment to launch boutique consulting firms or asset-light service agencies on modest personal savings now face immediate administrative pushback and summary requisitions. Prior local residence offers zero mitigation if the applicant cannot demonstrate substantial risk capital deployed (HKD 1.5M–2.0M), dedicated commercial premises, and an immediate payroll of local staff.

When you make an application for an Investment Visa in Hong Kong you have to be able to demonstrate that you are in a position to make a substantial contribution to the economy here.

But, if you are presently resident in Hong Kong, say as an employment visa holder working for a third party employer, the question is begged as to whether nor not the fact of your existing residence in the HKSAR will be positively considered by the Hong Kong when you make your application for an investment visa (aka the entrepreneur visa).

Certainly, at the start of your time in Hong Kong the answer is no, most certainly not.

Application For An Investment Visa – Being A Hong Kong Resident [No Longer] Helps!

Used to be, the longer you are here, the more weight the Immigration Department place on your existing connections to Hong Kong.

So, whilst the approvability test for your investment visa still has to be passed in of itself, there can be some advantage in your favour as existing resident, for example where:

(1) You are a dependent visa holder applying for an investment visa because your marriage has broken down and you’re no longer eligible to extend your dependant visa  and your business was started before your marriage came to an end.

(2) You have 4-5 years prior residence working as an employee in Hong Kong.

(3) You previously received permission to join in a side business with the consent of your immediate past employer and that business now forms the basis of your stand alone investment visa application at this time.

Application For An Investment Visa – Hong Kong Wants You To Succeed

By no stretch of the imagination can it be said that an investment visa approval in any of these circumstances is a mere shoe-in but they will certainly be considered positively by the Hong Kong Immigration Department while they give due consideration to your application.

Application For An Investment Visa – Will The HKSAR Help You?

If your business is supported by a government-accredited organization, your visa application is likely to be viewed more favorably by the Hong Kong Immigration Department.

However, you must still ensure that you meet the other requirements of the Business Investment (Entrepreneur) Visa and provide all necessary supporting documents to maximize your chances of success.

More Stuff You May Find Useful Or Interesting

Do You Have A Business Plan Template For My Hong Kong Investment Visa Application?

The Double Edged Blade Of A Hong Kong Investment Visa Approval

Can I Employ Myself By Getting A Hong Kong Business Investment Visa?

How To Engage The Hong Kong Visa Centre If Your Immigration Application Has Been Refused

What Happens If You Overstay Your Hong Kong Visa Limit Of Stay?

 

Check Out VisaGeeza.Ai

All Our Know-How : All Our Experience : Fully Interactive

100% FREE!

 

What’s The Deal If You’re In Hong Kong With A Dependant Visa & Your Employment Visa Holding Spouse Wants to Leave but You Want to Stay?

Posted by The Visa Geeza / in Employment Visas, Family Visas, Your Question Answered / 1 response

In Hong Kong With A Dependant Visa & Your Spouse Wants To Leave?

First Published On April 11, 2013 – Still Relevant in August 2023

What’s the deal if you’re in Hong Kong with a dependant visa and your spouse wants to leave but you want to stay?

Consider …

If you find yourself in Hong Kong with a dependant visa and your spouse wants to leave while you wish to stay, it’s crucial to understand the options available to you. Here’s what you need to know:

1. Dependant Visa Status: As a dependant visa holder, your visa status is tied to your spouse’s visa. If your spouse decides to leave Hong Kong, it may affect the validity of your dependant visa.
2. Visa Extension: If your spouse leaves but you want to stay in Hong Kong, you need to find an alternative visa option to maintain your lawful status in the city. This could involve transitioning to a different visa category based on your circumstances, such as obtaining an employment visa or exploring other possibilities.
3. Employment Opportunities: One pathway to stay in Hong Kong independently is by securing employment. If you can find a job and meet the requirements for an employment visa, you may be able to switch your visa status and continue residing in Hong Kong.For further information and guidance, you may find the following resources helpful:

• Hong Kong Visa Handbook – Dependent Visas
• Hong Kong Immigration Department

Navigating a situation where your spouse wants to leave Hong Kong while you want to stay can be complex. It’s crucial to understand your visa options, seek professional advice, and take proactive steps to ensure your legal status in the city.

QUESTION

Hello,

I am in Hong Kong with a dependant visa sponsored by my husband. He is planning to leave his employment here soon and return to his home country but I am thinking of staying for a couple more years.

What happens with my dependent visa (limit of stay in 2014) when he quits his job and leaves?

Can I, too, use my consents to reside in Hong Kong even though only via a dependent visa to look for an employer to then change my visa status?

More Stuff You May Find Useful Or Interesting

What Are Your Visa Options In Hong Kong If Your Marriage Has Irretrievably Broken Down?

Are There Any Advantages To Being An Existing Resident Of Hong Kong When You Make An Application For An Investment Visa?

Extending Your Dependant Visa After Divorce – Is It Possible?

If I Stop Working For My Current Employer Will My Employment Visa Remain Valid?

The 5 Key Factors Which Impact On Your Eligibility For A Hong Kong Employment Visa

 

Check Out VisaGeeza.Ai

All Our Know-How : All Our Experience : Fully Interactive

100% FREE!

 

PODCAST ANSWER

Podcast: Play in new window