Hong Kong has recently made policy changes to draw in more investors to the property market and make it more accessible to both local and foreign buyers. In this article, we will guide you through the key steps and licenses for setting up a Hong Kong real estate company.
Overview of Hong Kong’s Real Estate Market
Recent Changes to Hong Kong’s Real Estate Market
In October 2024, Hong Kong reintroduced real estate as a qualifying asset under the Capital Investment Entrant Scheme (CIES). Applicants can now include residential properties valued at HKD 50 million (approximately USD 6.4 million) or more as part of a total investment requirement of HKD 60 million (approximately USD 7.7 million).
Additionally, the Hong Kong Monetary Authority has adjusted the loan-to-value (LTV) ratios in hopes of making property purchases more accessible to foreign and local investors. Now there is an allowance of up to 70% financing for residential properties valued at HKD 30 million or below and 60% for those above HKD 35 million.
Benefits of Opening a Real Estate Company in Hong Kong
Hong Kong’s real estate industry is a growing market with several opportunities. Given the recent changes made to the market, there are several potential benefits to opening a real estate company in Hong Kong:
- Active Market: Hong Kong’s property market is consistently developing and provides different investment opportunities. Furthermore, there are several residential and non-residential properties for foreigners to purchase with little restriction.
- High Demand: As a popular destination for expatriates, Hong Kong experiences a steady demand for rental properties. There is also a continuous demand for both residential and commercial properties for different industries, resulting in more profit opportunities.
- Established Regulatory Framework: Hong Kong's real estate industry benefits from a strong legal framework and regulatory system that ensures stability and transparency. Some of its features include a registration system for property transactions and public access to property information.
Hong Kong has also designed a favorable business environment for foreign investments. This means that there are several benefits to opening a foreign-owned company in Hong Kong. These benefits include up to 100% foreign ownership of the company and a simplified registration process.
Overview of licensing for a Hong Kong Real Estate Company
Types of Real Estate Licenses
When registering your real estate company in Hong Kong, you will need the secure mandatory licenses to ensure compliance with local regulations and to operate legally and effectively:
- Estate Agent’s License (EAL): This allows you to operate a real estate agency in Hong Kong and assist clients with buying, selling, and renting properties. You will also be able to manage a team of salespersons and grow your business across different areas of Hong Kong.
- Salesperson’s License (SPL): This license enables you to work as a salesperson under the supervision of an EAL holder and assist clients with property. As a salesperson, you will collaborate with your supervising estate agent to meet expectations and adhere to guidelines.
Emerhub’s local experts can help you identify the specific licenses you require based on your exact operations. Our team can also manage the application process on your behalf to prevent potential delays and ensure that you meet all the eligibility standards.
Key requirements for Hong Kong Real Estate Licenses
Both licenses require you to be over 18 years of age and have passed the relevant qualifying examination administered by the Estate Agents Authority (EAA) to apply. You will also need to complete a training course to be considered eligible.
For an EAL license, you will also need a registered office in Hong Kong and a local resident acting as a representative who will oversee the agency's operations. If you do not meet the standards for either license, you have the option to obtain a real estate license through company incorporation.
This process involves selecting a company name, appointing directors and shareholders, and submitting the necessary documents to the Companies Registry. Should you decide on company incorporation for your license, Emerhub can conduct due diligence on your business partners to confirm their operational licenses.
How to register a Real Estate Company in Hong Kong
Establishing a real estate company in Hong Kong involves several essential steps to ensure adherence to local regulations, and Emerhub can assist you through our comprehensive company registration services:
- Name Registration: Once you have determined your business structure, you will need to register your company’s name with the Companies Registry. However, the name must not already be on the registry to be approved.
- Appoint Directors and Shareholders: You must have at least one director who is a licensed estate agent.
- Registration Submission: Emerhub can oversee this process on your behalf and review the application for a hassle-free experience through our company registration service.
- Obtain a Real Estate License: Operating a real estate agency in Hong Kong requires you to obtain a license from the Estate Agents Authority (EAA), the statutory organization responsible for regulating the real estate industry in Hong Kong.
After your company has been registered, you will need to open a corporate bank account and comply with local regulations. With Emerhub's assistance, you can smoothly navigate the registration process for your real estate company in Hong Kong, ensuring full compliance with regulatory requirements and proper documentation.
Are you ready to join Hong Kong’s real estate industry? Fill out the form below and get in touch with our consultants today!