The Limited Partnership Fund Bill which was announced in March has been officially passed on the 9 July 2020 and will come into force on the 31 August 2020.
The Limited Partnership Fund (LPF) regime enables funds to register in Hong Kong with a clear legal framework subject to certain eligibility requirements. The Hong Kong government took into account a wide variety of similar regimes in the most popular of jurisdictions in order to establish an attractive and competitive regime that has a familiar framework for investors.
There is a great degree of contractual freedom for the LPF’s with a non-exhaustive list of items that can be agreed between the partners. Hong Kong also has tax incentives and concessions that may be applicable in a large variety of transactions undertaken by the LPF.
Hong Kong has also devised a simple re-domiciliation regime and so it is hoped that not only will the above attract new funds being set up, but also entice offshore funds to re-domicile to Hong Kong.