Quite a few updates the last month with regards to Hong Kong incorporation and upkeep that we need to catch you up on. It further strengthens the reason why Global From Asia partnered with Unipro Consulting Limited about a year and a half ago – to have a proper license and dedicated team on these policies has been critical.
Additional Information Required for HK Business Owners (Significant Controllers Register)
Requirement on more disclosures of HK owners – All Hong Kong business owners now need to file an additional document. This is to ensure the owners are who they say and more details to confirm identity.
You can read about this SCR policy here
Here is the main FAQ if you want to save time
What are the new requirements of the Companies (Amendment) Ordinance 2018 (“the Amendment Ordinance”)?
Answer:
Under the Amendment Ordinance, all companies incorporated in Hong Kong (except listed companies) are required to :-
- identify and ascertain a person / persons who has / have significant control over the company; and
- maintain a significant controllers register to be accessible by law enforcement officers upon demand. Please also see
Licenses For Hong Kong Incorporation Agencies
Requirement for Incorporation businesses in Hong Kong to have a license. For years, consultants could register a HK company on behalf of a client without too much hassle. Many websites listed a “buy a HK company now” button and could file a company for a client. The Hong Kong regulators have now put in additional steps and requirements for companies to do this as a service. This will put more costs and paperwork for businesses to do it, and these hurdles most likely will get some to stop offering the service, increase their prices, and keep future service providers from entering the market.
You as a business owner may not notice the effects here, but the corporate division here will see the market landscape change. And again I am happy that Global From Asia has our partner Unipro to handle this with its CPA license and experience. Actually we have to register a dedicated new limited company just to deal with these licenses and updates!
You can read more about this policy here
It is called Application for a Trust or Company Service Provider Licence (Form TCSP1)
Our Thoughts and Takeaways
The Hong Kong banking “crackdown” happened around March 2016 and since then the “game” has gotten more and more challenging for both service providers (like our corporate services division) and business owners.
We are happy to find some FinTech solutions like our friends at Neat HK, the traditional landscape – even globally – is trending towards walls coming up and requirements for having local physical presence in that country in order to properly do business.
Such a clash – as the business owner’s trend – at least in our world – has been on working online without the need for a physical address.
We’re excited about the blockchain and crypto market movements, and hope they apply more “real life” applications as they mature. Yet as a corporate services provider, seems the governments and banks are doing what they can to “hold on” and make it as difficult as they can.
Unfortunately the real ones that have the hardest time are those who are the small business owners and startups. With limited capital and not much of a track record to show, they are the ones struggling to get access to business and banking solutions.
Global From Asia will continue to do our best to uncover the best ways for business owners to grow their global empires from Asia. Also many times it comes from comments and tips from readers and listeners of our podcast – so keep that coming in the comment section below.
