In order to improve the transparency of beneficial owenship of Hong Kong company and fulfill international obligations that prevent money laundering and terrorist, Hong Kong Companies Registry announces new rules recently:
Since March 1, 2018, company registered in Hong Kong (except for listed company) needs to keep an record of Significant Controller Register (“SCR”) at the office where the company registered.
● Original document of the announcement
● Attachment of the announcement
Details of the New Rules
According to the notice issued by Hong Kong Companies Registry, companies need to keep SCR in record for the sake of necessary check by specific government officers.
CR is kept at the Hong Kong Companies Registry or other designated HK offices, and for checking purpose by government officers only, including officers from HK police, Companies Registry, ICAC and China Securities Regulatory Commission. Specifically, the rule is only for unlisted companies.
Matters Need Attention
According to the new rule, companies should:
• Keep an record of Significant Controller Register (“SCR”) at the office where the company registered.
• Confirm the company’s controller by following designated steps.
• Fill our detailed information of the controller.
• Update the SCR information in time.
• Submit the SCR and its copy for check by the officer when necessary.
Specifically, the detailed information kept in SCR is concerning the controller’s name, address, ID number, date of becoming the controller and the controlling character.
In addition, at least one representative appointed by the company should offer assistance to the officer when the officer record SCR, and the representative should at least be:
• One of the member from the company, or the company’s director or employee who lives in HK.
• An accountant or legal professionals registered in HK, or a certified licensed “Trust or Company Service Provider”.
Therefore, if the company hasn’t (or doesn’t want to appoint) any company’s shareholder, director or employee who lives in HK as its representative, it can delegate HK registered lawyer, accountant or other certified licensed HK company service provider. Moreover, the exact name and contact way of the representative should be recorded into the Registry.
Penalty
If any company fails to perform the mentioned duty, it will subject to a criminal punishment — a penalty of 25,000hkd (the 4th level punishment) for the company itself and for each principal of the company. Worse still, there are additionally 700hkd as daily penalties.
We are here to remind you that
BE MORE CAREFUL about the new rule!
HACOS,Business Services Solutions Master
