A game-changing law taking effect this week will spur many international insurance companies to redomicile to Hong Kong and show their commitment to the city as a top finance hub, according to an industry association.
Advertisement
Hong Kong’s company redomiciliation regime launching on Friday will allow firms incorporated overseas to apply to return to the city while maintaining their legal identity and business continuity.
“Insurance companies redomiciling to Hong Kong will demonstrate a significant vote of confidence in Hong Kong as an international financial centre,” Selina Lau Pui-ling, CEO of Hong Kong Federation of Insurers (HKFI), said in an exclusive interview with the Post on Monday. “The law will be a game changer.”
HKFI represents 138 insurance companies in the city.
Previously, a company that wanted to redomicile to Hong Kong was required to wind up its existing operations and shift all assets and transactions to the Hong Kong entity. The new law does away with such requirements.
Advertisement
In February 2006, Hong Kong abolished an estate duty ranging from HK$100 (US$12.8) to as much as 50 per cent of the value of the assets – such as property, stocks, funds and insurance policies – passed on to beneficiaries. Since insurance policies sold in Hong Kong by companies domiciled elsewhere were not subject to the estate duty, many large insurers were based in tax havens like Bermuda.