New Obligation for Hong Kong Companies
From March 1, 2018, each Hong Kong company has to maintain a newly-created “Significant Controllers Register” (SCR).
The purpose is to enhance the transparency of corporate ownership and control as per the HK Companies (Amendment) Ordinance 2018.
If you have a HK company, you will need to take these actions by March 30, 2018:
1. Identifying the Significant Controller(s)
This can be:
- a natural person
- a legal entity (corporate shareholder of the Hong Kong company)
that has any of the below:
- more than 25% of company’s issued shares OR voting rights
- the right to appoint or remove company’s directors
- the right to exercise significant influence over the company OR over the activities of a trust
2. Appointing a Designated Representative
Each company has to appoint one person as its representative to provide assistance relating to the SCR. Designated representative must be one of the following:
- shareholder, director or employee of the company who is a natural person resident in Hong Kong; OR
- licensed company service provider, Hong Kong registered solicitor or accountant
3. Creating the SCR:
This record contains the significant controller’s particulars, and must be maintained accurately.
Please note the consequences for non-compliance of the above are:
- the company and every responsible person are liable to a fine of HKD25,000
- in case of continuing offence, a daily fine of HKD700.
Fiducia’s Hong Kong Corporate Services Team can assist you with handling these changes. Please contact us so that we may share further details.