Chartered Accountants◆Practising since 2016

Hong Kong to India · Trade and sectors

Trade agreements and sector rules for Hong Kong investors

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

There is no India–Hong Kong trade agreement, and goods keep their country of origin when routed through Hong Kong. Prior Government approval under Press Note 3 is expected for Hong Kong-registered investors, and citizens of land-border countries on the board need security clearance. Hong Kong investors are most active in trading and sourcing, financial services, consumer goods.

What is specific to Hong Kong companies

There is no trade agreement, and goods routed through Hong Kong keep their country of origin.

Sectors

  • Trading and sourcing
  • Financial services
  • Consumer goods
  • Holding structures for Asian groups

A trade agreement does not change FDI caps, FEMA pricing or RBI reporting.

Our services

How SU and Company helps

We assess whether a GIFT City unit or a mainland company fits the business and set up the chosen entity.

  • IFSC versus mainland comparison
  • Entity incorporation
  • Accounting, tax and compliance after set-up

Questions

Does a trade agreement change FDI rules?

No. Tariffs and services access change; FDI policy, sector caps and FEMA reporting still apply.

General information as at 5 November 2026, not advice for a particular case. Indian and Hong Kong rules change often; confirm the current position before acting. Hong Kong law points should be confirmed with a Hong Kong adviser.

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