The grant scheme for private open-ended fund companies (“OFCs”) accepts applications until 9 May 2024, unless extended
There is a grant scheme for OFCs. To date, The Securities and Futures Commission (“SFC”) and/or the Government has yet to announce an extension to the grant scheme offered to OFC applicants. Hence, for now, if a SFC Type 9 (asset management) licensed corporation wishes to make use of the grant scheme, the application for the grant should still be made on or before 9 May 2024 (Thursday).
The grant is open to OFCs successfully incorporated in Hong Kong. 70% of the eligible expenses, subject to a cap of HK$1 million per OFC, and a maximum of 3 OFCs per investment manager, will be covered under the grant if approved. Eligible expenses must be paid to Hong Kong-based service providers in relation to the incorporation of an OFC, such as fees charged by Hong Kong lawyers for drafting the offering documents of the OFC, tax advisers’ fees in relation to incorporation-related tax structuring, compliance consultants’ fees for work done in respect of incorporation of the OFCs, etc. Nevertheless, statutory fees such as registration or application fees to the SFC, licensing of the investment manager, audit fees and costs incurred in the establishment of a sub-fund under a pre-existing umbrella OFC will NOT be covered under the grant.
Applicants applying for the grant shall submit a duly signed and completed application form together with the supporting information and documents, including the certificate of incorporation of the OFC, and the scanned copies of the relevant invoices and receipts of payments, to the SFC, within 3 months from the date of incorporation of the OFC. The Companies Registry will issue a certificate of incorporation of the OFC to the applicant after the SFC is satisfied that the applicant has met the registration requirements. The SFC’s registration of the OFC will take effect on the date of issuance of the certificate of incorporation, whereupon the OFC would be established.
In December 2023, the Hong Kong Government has announced the revived Capital Investment Entrant Scheme (“CIES”). The CIES aims to facilitate the entry for residence in Hong Kong by capital investment entrants (i.e. persons who make investment in permissible investment assets), as part of Hong Kong’s policy initiatives to attract capital inflow into Hong Kong, stimulate economic growth and employment and enrich talent pool in Hong Kong. The revived CIES has an investment threshold of HK$30 million. OFCs managed by SFC Type 9 (asset management) licensed corporations are one of the permissible investment assets.
Willa Legal assists SFC Type 9 licensed corporations in structuring, drafting the offering documents and handling the registration process of private OFCs. Please feel free to reach out to us at (852) 2868 0082, or email@example.com for further information.