BVI BUSINESSES GAIN A NEW ROUTE INTO HONG KONG

Under a wider financial services agreement, eligible BVI companies could access funding, workspace and mentoring as they enter the Hong Kong market or seek expansion there.

The BVI and Hong Kong governments have signed a memorandum of understanding to strengthen cooperation between their financial services sectors. One provision could help eligible BVI businesses set up or expand in Hong Kong, according to a recent government press release.

For BVI entrepreneurs, the draw is access to programmes in Hong Kong that offer funding, workspace and mentoring. The release identifies BVI technology companies, financial services institutions and micro, small and medium-sized businesses as potential participants. That last category leaves room for firms outside finance and technology, though the release does not specify which other industries qualify.

The two governments signed the agreement during Hong Kong FinTech Week. It builds on a relationship that has long seen Hong Kong advisers help investors use BVI companies to do business internationally. Both governments want to encourage continued use of those companies and investment funds. They also plan to share expertise on digital assets and explore financial products such as green bonds, which raise money for environmental projects.

The small-business provision brings another side of that relationship into view. A Virgin Islands entrepreneur may have little reason to follow developments in green bonds but a very good reason to pay attention if Hong Kong is a market they want to enter.

Take a BVI software developer hoping to sell a booking system to Hong Kong hotels. Before renting an office or hiring a salesperson, the developer would want to know what hotel managers already use and what might persuade them to switch. A place to work and a mentor who knows the market could lower the cost of answering those questions before the first sale.

Hong Kong’s Under Secretary for Financial Services, Joseph H. L. Chan, said his government looked forward to welcoming eligible BVI firms that “wish to establish a presence in Hong Kong.” For business owners considering that step, some details are still open.

For BVI entrepreneurs weighing a move into Hong Kong, the next step is finding a programme that fits their business. Further guidance from the two governments could help owners explore their options as the agreement takes shape. In the meantime, interested firms can direct enquiries to the BVI Ministry of Financial Services, Economic Development and Digital Transformation at mfseddt@gov.vg or 284-468-2112.