relocation to Hong Kong

[RAT]

My wife and I are relocating to Hong Kong to oversee our imports and production in south China and other areas. I am employed and paid by a US company. Besides the restriction on staying no more than 3 months at one time, am I faced with any other restrictions on living in Hong Kong? Renting a flat should not be a problem, correct?

Does my three month clock re-start after each visit to the mainland?

I am fairly up to date on my US tax obligations, but can anybody tell me what rules Hong Kong is likely to impose on me for the above situation?

Thanks for any help you can offer. Happy holidays.

[PDLM]

You can't simply roll up in Hong Kong with the intention of residing here without a visa. You can renew your visa-free tourist access once or twice, but after a few months when it becomes clear that you are living in Hong Kong then Immigration will likely ask you to leave. You may only come for up to 3 months as a Visitor, not as a resident.

You will find it quite difficult (although it is not illegal) to rent an apartment without a HKID card - most landlords will, quite reasonably, not want an illegal alien as their tenant, although you will probably get a place by paying a bit above market rates and paying cash and a deposit up front.

[RAT]

Thanks for your quick reply, particularly over the holiday! I see your posts quite often, and you do seem to be the expert! Does the situation change at all where I am currently a director of a company in Hong Kong (related to the same business)?

Obviously, the best route is to get myself an employment visa (and my wife a Dependant visa), but I am unsure of the process if I am being employed by an offshore company (and thus not being sponsored by a Hong Kong company). Or, is my only real alternative to be sponsored by my the Hong Kong company for which I am a director? Since this is a new company, with no real history as of yet, will that even be possible?

Really, thank you for your input.

Regards

[PDLM]

There are various options possible - another would be an Investment Visa based on the new company and the business plan for that, particularly if that new company has already, or plans soon to, hire local employees. That is certainly possible, but you had maybe best work with someone who has been through that process before (I know Employment, Dependant & Permanent Residence applications; Investment not so well). There are various Visa agencies around which offer to advise and help with this, but I have no direct experience with them so can't make any recommendations I'm afraid.

You might also want to have a think about (and maybe take some professional advice on) your tax situation. It is most likely that both HK and mainland tax authorities will be after some of your money if you split your time around 50/50 between HK and the mainland (in addition to your "privilege" as an American of being taxed by your government even when non-resident). If you have the option of dividends from the company rather than (some of your) salary then that might be advantageous.

[RAT]

My time in the mainland will not be half, nor close to it. Average about one day a week, maybe a little more. Mostly day trips.

Can you point me a good direction for employment visa assistance? Is my only means of an employment visa to be sponsored by the company I am a director of? Or, can my employment with a US company open an avenue for application? I can easily find a local "sponsor", somebody that I have known and worked with for twenty years, but he would not be my employer. My employer will either be my US employer or the new HK company. You seem to be well versed in this. I am just not sure what my next step is.

Yes, my US citizenship has some taxation disadvantages, but that's life I guess...

[PDLM]

I'm not sure either - it is possible in principle for an overseas company to sponsor you for employment here, although I think they might need some sort of virtual branch office in order to deal with the Revenue Department on tax. Individuals cannot sponsor for Employment.

I really don't know any of the Visa agencies except what I could find from Google. If you can wait a few days for people to come back from holidays then someone else here make have a recommendation from experience.

[Sleuth]

My time in the mainland will not be half, nor close to it. Average about one day a week, maybe a little more. Mostly day trips.

Mainland taxes won't kick in unless you are there more than 182 days; I believe they just changed this to be a rolling 12 month calendar and not a calendar year.
HK taxes kick in if you are in HK for more than 60 days. Or, probably, if you are paid through a HK entity.
Hk rate is roughly 1/2 that of PRC and HK has various exemptions before you actually have to pay any money out.
Keep in mind I am not a tax expert and this is just from my own situation. But it gives you a starting point.

[ycchai]

Just apply for the employment visa, I just got mine a few weeks ago, took me about 1 week from application to getting the visa and cost only HK$160, just download the form from the immigration website and follow the instructions. immd.gov.hk

[Boris]

Better still - as you said " I am currently a director of a company in Hong Kong " get your company secretary do the paper work on your behalf.
They will have the local experience.

[dannycat]

Hi Rat,

Just curious, What type of product does your company export to the US.