New Content Daily Sign Up Here

 This question raises quite a number of issues surrounding a decision to go into business for yourself in Hong Kong whilst presently holding an employment visa sponsored by a third party employer (and it’s only the immigration parts which I am qualified to address).

PRACTICE UPDATE: How the content must now be read in light of current ImmD policy:

Historically, this comparative guide addressed whether an employment visa holder looking to build a venture should simply seek ImmD permission to “join in a side business” or formally change visa category into a full investment as entrepreneur visa. The Geeza framed joining in a side business as the far safer, tactical starting point: it preserved the stability of an existing employment visa, required only the primary employer’s consent, and operated under a relaxed, discretionary review where lean consultancies with minimal capital and no staff routinely gained approval. In contrast, migrating completely to an entrepreneur visa meant severing employment security, entering an intensive administrative review, and fully shoulder-to-wheel justifying the business, though it historically remained achievable for bootstrapped founders with modest capital, serviced office space, and phased hiring plans.

The game has changed from a tactical balancing of convenience into an absolute chasm of compliance risk. Migrating into a full investment as entrepreneur visa now triggers a severe corporate audit anchored to TTPS Category A operational substance (~HKD 2.5M enterprise scale). If an applicant cuts ties with their primary employer to pursue this path, the new venture cannot rely on gradual progress: it must immediately show HKD 1.5M–2.0M in deployed corporate bank liquidity, an executed commercial lease for exclusive physical premises (“four walls”), and active MPF payroll for 2–3 local permanent residents, or face instant refusal and loss of status. Meanwhile, while joining in a side business remains an option to explore, the post-April 2026 climate means ImmD scrutiny is tightening across the board; attempting a full status change without heavy institutional backing or admission into an accredited government incubator is no longer a viable leap.

QUESTION

Hello Stephen,

I have an employment visa for the remaining two years (post which I will complete 7 years and apply for PR).

Currently, I wish to open a company in Hong Kong, which may or may not be the sponsor to my own visa, as I am happy to retain the current employment or give it up.

My current employer is flexible and has no conflict no matter what way I choose.

For my own company setup, can you please inform:

(1) Is there a way to work for both companies without having to go through ‘Change of sponsorship‘ or ‘Investment visa‘ process. I prefer to be on the employment visa by my current employer while still being able to contribute to my own company.

(2) In case if above is not workable and I cannot work for my own company, is a proprietorship structure fine if I need an entity to book revenues resulting from my own business activities? Can such a company have offshore/zero employees except for a company secretary?

(3) In case, I choose a limited liability company and seek a change of sponsorship of my employment visa under my new company, can they reduce my existing visa to 1 year (from 2 years which is the case now), if the new company is subject to a Business Review. Have such cases happened?

(4) Given that I have no visa concerns or conflict/flexibility concerns regarding my current employer,  would you recommend a Hong Kong incorporated company or a BVI company for basic revenue booking needs?

More Stuff You May Find Interesting or Useful

How can I go from being a sponsored Hong Kong employment visa holder to working in my own business as I wait out the 7 years to permanent residency here?

Business investment visas – a leg up for start-ups in Hong Kong

Hong Kong immigration advice for free – why a counter intuitive business model is proving so successful

The immigration issues associated with starting a business in Hong Kong

Are such facilities as virtual offices, incubators, serviced offices & co-working spaces deemed ‘suitable business premises’ for the purposes of a Hong Kong business investment visa application?

PODCAST ANSWER

Podcast: Play in new window