A special purpose vehicle (SPV) is a company in Hong Kong, usually, a subsidiary, incorporated to serve as a means of securing the assets of the investors of the parent company faces bankruptcy.
The reason who many foreign investors choose Hong Kong as the jurisdiction from which to manage an SPV is that the city has a favorable tax regime and has signed a number of double tax treaties. Investors interested in company registration in Hong Kong can explore this business option and its advantages.
Our experts invite you to watch a video about the uses of a special purpose vehicle:
Legal entities that qualify as SPVs in Hong Kong
Special purpose vehicles in Hong Kong can take the form of a corporation, partnership or trustee. The chosen form must meet these important criteria:
-must be owned in full or partially by a non-resident in Hong Kong;
-must be incorporated or registered outside of Hong Kong;
-does not engage in trade or activities other than holdings;
-must not be registered as an excepted private company.
The SPV can be created in order to hold and administer an excepted private company, from Hong Kong. The latter is a private company incorporated outside Hong Kong that satisfies certain conditions.
One of our company registration agents in Hong Kong can give you more information about companies that are used as special purpose vehicles. If you are an investor who already owns a company and could use an SPV to secure your obligations, you can contact our agents for personalized information.
Types of companies in Hong Kong
Hong Kong has a pro-business regulatory regime both for taxation and in terms of the available business structures. Investors may choose to form a public orprivatelimited liability company (two of the most commonly used forms) or start a single-person business in the form of a sole proprietorship. It is important to know that each business form has its own particularities and different requirements for taxation and financial reporting.
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