Client :

Mr. Chen, Mainland Chinese with global businesses and offshore investments in more than 20 countries.  Due to his business, he is a frequent traveler.

Background :

It is now easier than ever for ultra-high-net-worth individuals to relocate and select a country as their residence, and in light of a variety of circumstances – including political instability and the proliferation of special tax regimes across more countries designed to attract the wealthy – this is a continually increasing trend. However, these individuals must consider a wide range of factors when deciding whether to relocate internationally, and it is therefore important for advisers to take a holistic approach.

The Story :

Mr. Chen would like to relocate his head office and asset holding entities to offshore region, ideally UK and arrange family members to study and immigrate there.  While he wants to keep his eyes open for possible UK alternative. In this project, we helped Mr. Chen to review 15 key jurisdictions worldwide and provides him with expert guidance on the tax and legal aspects of inbound and outbound transfer of his residence. The work entail the detail comparison on (1) the schools and universities in the country ; (2) the stability of the country’s political and legal systems; (3) the language to be used; (4) the investor visa regime; and (5) the taxation regime.

The Chen Family and its Family Office :

The Chen’s Family has 4 members, Mr and Mrs Chen are couple, they have two children, one graduated and passed 18 while the other is just 15 and awaiting to attend high school. The net worth of Mr. Chen is estimated more than USD 100 million. Mr. Chen has global business and assets in China, UK, Hong Kong, Thailand, US, Australia and UAE. Like most entrepreneurs in Asia, he has yet established a formal entity designated to manage his family agenda or wealth while engaging his corporate’s financial controller and assistants involved in serving both his business and family. 

Learning Points :

When a business is globally mobile, it is typically better equipped to cope with the various demands of international business expansion, including: immigration, labor and tax law compliance; and any additional relocation logistics.

Historically, trips abroad – to establish new subsidiaries, make commercial connections, research new markets – were each planned individually. Without the wider context of a global mobility strategy, it was harder to judge whether the cost of these trips could actually be recouped. By considering the potential value to your business of each international relocation project, you can fund different frameworks designed to ensure ROI.