The Hong Kong LPF scheme provides a similar level of flexibility, security and tax benefits as similar offshore jurisdictions.

22 January 2025

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Comparison of Hong Kong Limited Partnership Funds with offshore jurisdictions

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In 2020, Hong Kong introduced the Limited Partnership Fund Ordinance (Cap. 637) (“Ordinance”) which created a new limited partnership fund regime to enable private funds to be registered in the form of limited partnerships in Hong Kong. This new regime was introduced to attract investment funds into Hong Kong and allows for similar partnership structures to those in the Cayman Islands and British Virgin Islands (“BVI”), which have long been the most popular for fund establishment.  

The Ordinance enables the establishment of a limited partnership fund (“LPF”) with one or more general partners (who manage the limited partnership) and one or more limited partners (who are usually passive investors). The main constitutional document of the limited partnership will be the limited partnership agreement (the “LPA”).

The Hong Kong LPF scheme provides a similar level of flexibility, security and tax benefits as similar offshore jurisdictions. In some instances, Hong Kong can also be more simplified in terms of establishment and operating requirements saving set-up and ongoing operating costs. 

Downloadable here is a matrix showing a high level comparison of the limited partnership regimes in Hong Kong, Cayman Islands and BVI.

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​For any questions or additional information, please feel free to reach out to the author Matthew Love at matthew.love@dc-lo.com.

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"In some instances, Hong Kong can also be more simplified in terms of establishment and operating requirements saving set-up and ongoing operating costs."