So you’re now committed to getting your Startup off the ground here in Hong Kong…
When it comes to getting investment visa approvals, the problem with most technology startups is that most of them are boot strapped, most of them are run according to the Lean philosophy – and most of them fail within the first 2 years of their lives.
And the Immigration Department know this.
Consequently foreign national founders of technology startups in Hong Kong need to temper their early entrepreneurial seizure and consider whether their plans for Hong Kong are actually feasible from an immigration perspective.
The immigration test to pass is to show you can make a substantial contribution to the economy of Hong Kong or, as I am fond of saying. how long is a piece of string?
For sure, running Lean is smart and the only sensible way to carry out the pre-revenue activities of your enterprise – and the Immigration Department will not unduly penalize you for this.
But boot strapping will doom your application to failure. This is Hong Kong after all, and money talks in this town.
So when you do decide to take your business investment visa application to the Immigration Department you need to make sure that you have sufficient funding to be able to fast track your implementation plan; you need financing to be able to generate local jobs quicker than you might otherwise have planned for; you need to move past your hip kitchen table business accommodation arrangements.
In essence, you need a ‘visa factor’ in your fund raising document, setting out to prospective investors that your proposed Use of Funds includes an increased sum of available cash to be able to meet the requirements of the Hong Kong Immigration Department in granting your visa.
You may not actually end up spending it all and it could be returned to investors in the case that you do eventually shut up shop – but ImmD need to be satisfied you’ve got the money to succeed – right from the get go.
Plans for future fund raises will not cut the mustard.
Remember, without the permission of the Director of Immigration your venture is essentially an illegal one – so raising the right sum of money will serve to protect your investors and the only sensible thing to do if you wish to live, work and prosper here with the Immigration Department’s blessing.
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