HKLPF regime boosts Hong Kong’s appeal to fund managers and global capital
- The Hong Kong Limited Partnership Fund (HKLPF) regime offers flexibility, tax efficiency and global compliance, making it a compelling choice for fund domiciliation
- Vistra, a global leader in fund and corporate services, supports fund managers with end-to-end solutions for LPFs, including administration, setup, tax compliance and governance
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The Hong Kong Limited Partnership Fund (HKLPF) regime, a highly attractive framework allowing private funds to be structured as Hong Kong-domiciled limited partnerships, has become a focal point in the asset management industry recently.
With its flexibility, tax efficiency and investor protection, the HKLPF is enhancing Hong Kong’s appeal as a destination for fund domiciliation and cross-border investment.
Since its introduction in 2020, the HKLPF framework has become an attractive option for global fund managers, family offices and multinationals seeking a flexible, tax-efficient and investor-friendly jurisdiction.
A flexible, competitive framework driving Hong Kong’s rise as a global fund domicile
The Limited Partnership Fund Ordinance (Cap. 637), effective from August 31, 2020, provides a legal framework for establishing investment funds in Hong Kong. Under this framework, the general partner (GP) has ultimate responsibility for the management and control, while investors assume the role of limited partners.
When establishing a Limited Partnership Fund (LPF), the GP is responsible for appointing or hiring key operators, such as the fund manager, who oversees the quality of investment activities. The GP can either delegate this role or manage it directly if they have the expertise, explains Daisy Chan, Director of Fund Services at Vistra.
