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According to the Hong Kong Limited Partnership Fund new regime, An LPF must have a registered office in Hong Kong and must be registered through a Hong Kong law firm or attorney. Ascent fund services offer the knowledge and technology to effortlessly enhance the quality, breadth, depth, and timeliness of the information that drives decision-making for your Limited Partnership Fund. We combine cutting-edge technology with substantial alternative investing knowledge, as well as a high-touch, boutique-style engagement strategy, to assist Limited Partners in navigating complexity and gaining effic
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Ascent Fund Services The regime of limited partnership fund was set up by the Limited Partnership Fund Ordinance (LPFO). The Hong Kong Limited Partnership Fund doesn't have an individual legal personality through its GP or general partner. It is developed for venture capital funds and private equity. A limited partnership fund is required to possess a registered office in Hong Kong. A law firm in Hong Kong must submit its registration application. In this article, you'll get to know the various aspects of this regime. What Is the Hong King Limited Partnership Fund Regime? This modern legal regime facilitates the set up of funds as limited partnerships in Hong Kong. The various aspects of the regime are discussed below.
Filing fees The registration cost of an LPF is way less than other fund jurisdictions. The initial registration and application cost are HK$3,034. The ongoing fees are in the range of HK$26 to HK$105 per item. Taxation The applicability of Hong Kong profit stacks is always according to the major financial returns of an LPF. It includes the following. •The income of LPF •The carried interest •The management fee If the LPF fulfils the fund's profits tax exemption, then the income of LPF will be spared from the Hong Kong profits tax. However, investment managers should always make it a point to discuss with their tax advisors and only then consider the terms attached to this kind of tax exemption. With regards to the management fees, if the investment manager doesn't run a business in Hong Kong, the fee won't be subjected to Hong Kong profits tax. However, it will be subjected to the corporate tax of the home jurisdiction of the investment manager. Like the management fees, the carried interest amount will be subjected to the corporate tax of the home jurisdiction of the investment manager. But if the manager has a decent presence in Hong Kong, it can be subject to concessions of tax. Licensing Under the Limited Public Fund Ordinance, it is mandatory for the GP to designate an investment manager. As per the investment process of the fund, the investment manager shouldn't indulge in regulated functions or activity in Hong Kong without a suitable licence that's issued by Hong Kong's Securities and Future's Commission.
Commercial prerequisite In the light of the fact that this regime is fairly new, a crucial consideration on the part of the investment manager is to see whether the target investors are responsive to the structure of LPF. Two things can be concluded from experience so far. •Specific PRC investors, especially of the enterprises that are owned by the states are more ready for investing in an LPF for reasons of policy or otherwise. •Local investment managers are more ready to utilise LPF for the purpose of establishing investment funds. Final Words The Hong Kong Limited Partnership Fund Regime gives a great alternative to other established fund structures. But a crucial consideration is if the target investors are ready to invest in such a structure. Although there's no reason why the regime shouldn't be opted for, it will certainly take some time for the market participants to acquaint themselves with it. Contact-US …………………………. Address– Singapore Website –www.ascentfundservices.com
