Hong Kong Introduces Re-Domiciliation Regime

Hong Kong has launched a new re-domiciliation regime, allowing non-Hong Kong-incorporated companies to transfer their legal registration to the city while preserving their corporate identity. The measure is part of a broader strategy to consolidate the city’s status as a leading international financial and business hub.

Effective from May 31, the regime enables eligible companies to re-domicile without undergoing liquidation or re-incorporation. Companies must meet specific requirements, including financial solvency, sound corporate governance, and protections for shareholders and creditors.

A distinguishing feature of the new framework is the continuity it provides: re-domiciled entities retain their original legal identity, ensuring seamless operations throughout the transition. To prevent double taxation, the Hong Kong government will offer unilateral tax credits for profits that may become subject to Hong Kong tax post-re-domiciliation.

The re-domiciliation policy complements a suite of initiatives aimed at enhancing Hong Kong’s attractiveness to international investors. These include the New Capital Investment Entrant Scheme, which grants residency to individuals investing a minimum of HKD 30 million (approximately USD 3.82 million) in permissible assets. The scheme is expected to attract over HKD 30 billion in capital inflows and further support the city’s economic development.

Together, these measures reflect Hong Kong’s commitment to maintaining a competitive, stable, and internationally aligned business environment, supported by a comprehensive network of legal, accounting, and financial services. The combined policy efforts are expected to reinforce the city’s role as a preferred base for multinational companies and investment platforms in the region.