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The Hong Kong Immigration Department offer ‘liberalised’ immigration arrangements for foreign nationals and mainland students who graduate from Hong Kong tertiary education institutes (“IANG”). If you have a job in Hong Kong one year after graduation, then the extension process is all but a rubber stamping exercise. But what if you wish to start a business investment instead?

First Published August 20, 2013, still of interest today

QUESTION

Hello Stephen,

I have already graduated in summer 2012, and now I stay in Hong Kong by “1 year IANG extension” visa, and I need to get a visa before December 2013 which I can stay in Hong Kong.

The situation is I want to start a service business in a unique niche not presently served in Hong Kong.

I have got to know how to set up a company here, and after I read your Hong Kong Visa Handbook, I have better understanding.

The Visa Handbook is useful.

Based on your knowledge, what is the minimum monetary injections/investment to the company that I can extend my visa in Hong Kong in December 2013?

In other words, what is number is safe?

I have heard a successful case that a Chinese young girl set up her business in Hong Kong by HKD1,000,000 after finished her master program and she have extended her visa in the name of her own company.

Second question is, there are only three months that allow me to set up my business, is it even more difficult?

Let’s assume that, hopefully, I will register my company and start my business in November, will Hong Kong immigration reject my extension easily in December 2013, for reasons like the company is just started, or there are only few documents and contracts to prove the company can contribute to Hong Kong economy?

I am eager to start my own business in Hong Kong, instead of working for a company.

I hope you can give me some suggestions, thank you.

ANSWER

If you have a period of stay in Hong Kong that was afforded to you by the Immigration Arrangements for Non-Local Graduates (IANG), and you’re seeking to have that limited stay extended on the strength that you have started your own business here, then in order to achieve that you need to pass the approvability test for a business investment visa, which is you need to show that you are in a position to make a substantial contribution to the economy of Hong Kong.

That, of course, requires you to have things in your business plan that includes the potential for the creation of local employment opportunities and also that you’re going to have suitable business premises and that the nature of your business can be said to benefit Hong Kong in some discernible and tangible way.

And, therefore,the nature of your business itself is as important as also having the ability to create local jobs and be homing the business in the correct fashion. But to turn to your question about what the minimum or magic number is from a cash perspective, well, the truth is that there isn’t a particular minimum and there isn’t a particular magic number. It depends on the business that you’re intending to establish, or indeed you have established and whether those funds are sufficient to give effect to that business plan. From your question, it appears that you know someone who was successful in this endeavour with a million HKD, and I would say that, that’s not surprising. I think a million HKD is quite a good amount of capital to have to give effect to any kind of reasonable business plan; but as for what would work in your situation, again, I’m reluctant to put any particular number on it because it really does depend on all of the circumstances. But it is fair to say that based on my experience, if you have less than, say, a quarter of a million or maybe HKD300,000, you may struggle persuading the Immigration Department that your business is properly financed in order for your plan to really give effect to the potential for you to make that substantial contribution.

In relation to the timing aspect in your question, if you are planning to start your business in November and then expect the Immigration Department to grant you an extension based on that business in December, I think you’ll be very hard pressed to allow the Immigration Department to approve you in those circumstances because getting a business investment visa approved is one of the hardest challenges in Hong Kong Immigration.

Now, as a non-local graduate, you are afforded a certain kind of positive approach to such applications. But, the challenge of showing that you can make a substantial contribution to the economy of Hong Kong when you’re expecting the Immigration Department to consider that over the course of just a few short weeks, immediately prior to the expiry of your current limit of stay, is probably a little bit too much of an ask; so my strong advice is that if you’re going to do this, don’t wait until then but start now.

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