The ultra-wealthy seeking to establish a family office find Hong Kong attractive due to its «ability to move relatively quickly», according to Jessica Cutrera, chairman of Family Office Association HK, citing advantages such as the lack of need for pre-approvals.

Competition between Hong Kong and Singapore as the wealth hub of choice for family offices continues. As of end-2023, the former is home to over 2,700 single single family offices (SFOs) while the latter has awarded tax incentives to around 1,400 SFOs. 

According to Family Office Association HK chair Jessica Cutrera, Hong Kong is a preferred choice for many ultra-rich individuals due to the speed and clarity of the process required to set up a SFO.

No Pre-Approval

Cutrera notes that the «reputation for being slow, for being difficult» has worked against competing markets, without naming specific jurisdictions, compared to Hong Kong which has the «ability to move relatively quickly». One oft-cited example that allows family offices to move faster in Hong Kong is the lack of need for pre-approvals to obtain tax incentives, in contrast with Singapore which first requires a green light from the local regulator.

«The family office incentive scheme [in Hong Kong] is clear,» Cutrera said during a panel at the «Hong Kong Investment Funds Association 17th Annual Conference». «It is relatively easy to interpret and act on. It does not require pre-approval so it allows families who are looking to grow and build out their family office presence to do so with relative certainty in terms of timeline, in terms of being able to move and invest their assets.» 

Resources, China Access

In addition, Cutrera also highlighted factors that make Hong Kong attractive for family offices such as access to service providers and a deep talent pool as well as connectivity with mainland China.

«We’ve seen significant traction in the last six months,» added Cutrera, who is also the president of Leo Wealth. «That interest is coming from the Middle East, India, Israel and other markets around Asia. It’s been exciting to see a dramatic pickup both in terms of interest in setting up a multi-family office in Hong Kong as well as setting up a SFO presence here.»