TTPS Renewal Rules and the Ordinary Residence Myth

Introduction

The Top Talent Pass Scheme (TTPS) has been in place for over two years, and the first batch of approved professionals who came to Hong Kong is about to enter a peak period of stay renewals. The claim circulating that one “can renew without going to Hong Kong” stems from a misunderstanding among some applicants of the rule that seven years of ordinary residence is required before one can exchange for a Hong Kong permanent identity card. This article unpacks, one by one, the legal requirements of the two separate frameworks of stay renewal and “seven years of residence in Hong Kong”, and cites the relevant provisions of the Immigration Department to explain why being “completely absent from Hong Kong” cannot pass the renewal assessment at all, as well as the legal risks of attempting to get through by means of sham employment or bogus affiliation.

Statutory Threshold for TTPS Renewal: Must Be Employed or Conduct Business in Hong Kong

The renewal conditions of the TTPS are completely different from the initial application, which only looks at salary or academic qualifications. According to the official website explanation of the Top Talent Pass Scheme by the Immigration Department, when applying for an extension of stay, the applicant must already be employed in Hong Kong and be able to derive a stable income from it; or the applicant must have established or be participating in a business in Hong Kong and provide relevant proof. In other words, renewal is not an “automatic visa extension”; the Immigration Department requires that substantive economic activity take place in Hong Kong.

Key figures here: the initial limit of stay under the TTPS visa is divided by category — Category A is 36 months, and Categories B and C are 24 months. As at the end of March 2024, the TTPS had approved over 71,000 applications (see the Financial Services and the Treasury Bureau press release of 28 March 2024). If an applicant fails to prove that they are working or conducting business in Hong Kong, the Immigration Department will refuse the renewal and their TTPS status will lapse immediately.

It is worth noting that at the time of a renewal application, the applicant is not required to be “ordinarily resident in Hong Kong”, but must prove that the principal place of their work is in Hong Kong. However, having no Hong Kong employer at all and working only remotely for an overseas company fundamentally fails to meet the renewal requirements.

The “Ordinary Residence” Myth: A Separate Standard for Exchanging for Permanent Resident Status After Seven Years

Some applicants confuse the rules for renewal with those for applying for a permanent identity card. The Immigration Ordinance (Cap. 115) states regarding “ordinary residence” that a person who is in Hong Kong legally, voluntarily, and for the purpose of settling (such as for study, work, or residence, etc.), regardless of the length of time, is regarded as ordinarily resident in Hong Kong. When verifying permanent resident status, the Immigration Department will consider the reasons, duration, and frequency of the person’s absences from Hong Kong; whether they have a habitual residence in Hong Kong; whether they are employed by a Hong Kong-based company; and the whereabouts of their immediate family members (spouse and minor children).

This “ordinary residence” test is used to determine whether a person who has continuously held a Hong Kong identity card for seven years qualifies as a permanent resident, and is not used at the renewal stage. When renewing a TTPS visa, the Immigration Department only examines whether the applicant currently meets the employment or business requirement, and does not launch an “ordinary residence” investigation. Therefore, even if an applicant resides mainly in the Mainland and returns to Hong Kong only a few times a year, they can theoretically pass the renewal if they can provide a substantive Hong Kong employment contract and payroll records; however, when applying for permanent residency in the future, they will face the “seven years of ordinary residence” assessment and may fail to pass because of prolonged absence from Hong Kong. Wrongly believing that “renewal is possible without going to Hong Kong” amounts to conflating the two systems, and it is dangerous to trust claims that one can permanently detach from life in Hong Kong.

”Alternatives” for Not Coming to Hong Kong and the Criminal Consequences of False Statements

On the market, intermediaries from time to time promote “bogus affiliated employment” or “setting up a shell company” schemes, claiming that applicants can renew without coming to Hong Kong in person. The Immigration Department has long been alert to such arrangements and has substantive review powers. Under section 42 of the Immigration Ordinance, any person who makes to an immigration officer a statement that they know to be false or do not believe to be true commits an offence, and upon conviction is liable to a maximum fine of HK$150,000 and 14 years’ imprisonment. The Immigration Department’s website also explicitly lists the offences and penalties as a warning to applicants.

In recent years there have been several cases of prosecutions for falsely reporting employment relationships. In June 2024, the Immigration Department busted a criminal syndicate that specialised in providing false employment contracts for TTPS holders and non-local graduates, arresting 32 people in the operation, including the syndicate’s mastermind, company directors, and applicants. The syndicate arranged for shell companies to issue fake offer letters, and forged payroll records and Mandatory Provident Fund (MPF) contributions, with each applicant paying a service fee of HK$150,000 to HK$300,000. The applicants involved had not set foot in Hong Kong during this period, and were ultimately charged with conspiracy to defraud and making false statements; some defendants were sentenced to immediate imprisonment.

Investigators may physically inspect the declared address, or even conduct surprise inspections. Once the Immigration Department discovers false arrangements such as shell companies, it will cancel the relevant visas immediately and launch a criminal investigation. Therefore, any renewal service that advertises “no need to come to Hong Kong” or “no appearance required” is highly likely to lure applicants into the legal trap of false statements.

Compliant Renewal Pathways and Data Analysis

For TTPS holders who genuinely need to work outside Hong Kong, they should ensure that their employment arrangement has a reasonable substantive basis. The Immigration Department will examine the reasonableness of the entire arrangement, including whether the company genuinely has overseas operations, and whether the applicant’s position genuinely requires long-term posting abroad. If approved, the applicant is generally granted an extension of stay not exceeding three years, or until the expiry of their Hong Kong employment contract (whichever is shorter), but the calculation of “ordinary residence” when they later apply for permanent residency will still be affected.

Applicants renewing on the basis of entrepreneurship must prove that they have established or are participating in a business in Hong Kong, and the Immigration Department will examine the relevant proof.

Thus it can be seen that when reviewing renewals, the Immigration Department focuses on the applicant’s substantive connection with Hong Kong, rather than mere paperwork.

Proper Planning for Seven Years of Residence in Hong Kong: Avoiding the Vicious Cycle of Renewal Lapse

For those who intend eventually to obtain Hong Kong permanent resident status, relying solely on renewals without building ordinary residence ties will inevitably face obstacles when their permanent resident status is later verified. Some people have been obstructed when verifying permanent resident status because of reasons such as prolonged absence from Hong Kong within the seven-year period, lack of a stable address, and family members not residing in Hong Kong. TTPS holders who plan to switch to permanent residency after seven years should start building facts of residence in Hong Kong from within their first approved stay period, including leasing or purchasing accommodation, enrolling children in local schools, and joining the MPF scheme.

Therefore, the “not going to Hong Kong” strategy not only fails to achieve renewal, but will completely block the path to permanent residency.

Conclusion

Reviewing the current regulations and enforcement reality, it is impossible for TTPS holders to successfully renew while completely staying away from Hong Kong. The statutory lever for renewal lies in “being employed or conducting business in Hong Kong”, rather than “ordinary residence”; however, applications lacking a Hong Kong geographical connection, even if they chance to slip through the renewal, will be exposed under the Immigration Department’s strict review. This article is for information reference only and does not constitute legal advice. Applicants should refer to the latest announcements on the Immigration Department website (www.immd.gov.hk), or seek professional legal advice regarding their individual circumstances.