When the need for significant controllers register in Hong Kong was announced in January of 2018, it became apparent that Hong Kong was edging a step higher in enforcing compliance. Company incorporation Hong Kong experts indicated that the administration targets understanding the businesses to redefine its support.
It appears that Hong Kong aims at making its operational environment more appealing to enterprises that help its economy to grow. In this post, we look at three things that go together with the new Hong Kong beneficial ownership register requirement.
The Hong Kong significant controllers register
This is a new requirement for all the companies in Hong Kong. Under the new Companies Ordinance amendment, the significant controllers register seeks to identify the people or entities that have greater control in companies operating in Hong Kong.
These are individuals who hold more than 25% of the issued shares or control over 25% of the company votes. By understanding these personalities, the Hong Kong administration can easily know the enterprises, the decisions they make, and future expectations. But this is not the only requirement for your enterprise after successful incorporation in Hong Kong.
The certificate of incorporation
The certificate of incorporation is the first and most important legal document for any enterprise in Hong Kong. Note that certificate of incorporation should be the first step when taking a business to Hong Kong. You can register the company alone by preparing all the documents and taking them to the companies’ registry in Hong Kong.
You can also register the company through an agency. These are legal entities allowed to register companies in Hong Kong for clients. You only need to share the registration documents and let the agency complete the process. Note that the agency can also serve as the company secretary and main address.
The bank account and tax resident certificate
Once your certificate of incorporation is issued, the next item on the list is a bank account. This is very crucial because it allows the business to get paid and make payment. Note that the significant controllers register in Hong Kong has members who determine how the bank account is used.
The tax resident certificate is perhaps the most crucial component for enterprises that target expanding to the neighboring markets. The Hong Kong administration issues tax resident certificate to enterprises that demonstrate tax substance. Therefore, you should get the bigger picture from companies’ registry in Hong Kong by ensuring you are compliant in all avenues.