Hong Kong company maintenance is of great importance after company registration. Common issues concerning compliance management for HK companies include accounting and tax filing, annual return filing, annual audit report and the Significant Controllers Register (SCR) put forward in the early of this year. The requirement to keep a SCR applies to all companies formed and registered in Hong Kong. Each company will be required to keep a SCR, even if it does not have a Significant Controller.
How Does SCR Impact You?
Each company will be required to keep its SCR at its registered office or a place in Hong Kong. A company will be required to notify the Companies Registrar the place where the register is kept and any change to that place within 15 days of the change. The Company will be required to give a written notice within 7 days where it knows or has reasonable cause to believe that:
1. A person is a significant controller of the company;
2. A particular person knows the identity of another person who is a significant controller of the company.
The addressee is given one month from the date of the notice to comply with requirements. There is an exception where the company has already been informed of the status as a registrable person or registrable legal entity and the required particulars have been provided to the company.
The company will also be required to keep information in the SCR up-to-date. The company must give a written notice within 7 days where it knows or has reasonable cause to believe that there is a registrable change in relation to a significant controller.
All entries relating to a significant controller in the SCR may be destroyed only after 6 years from the date on which such person ceased to be a significant controller of the company.
Important Tips
Failure to comply with the new requirements and obligations is a criminal offence. The company and every responsible person of the company are subject to a fine of HKD25, 000 and a further daily fine of HKD700.
In addition, any person who knowingly permits the contravention may be liable on conviction on indictment to a fine of HKD300, 000 and to imprisonment for 2 years; or on summary conviction to a fine at maximum of HKD100, 000 and to imprisonment for 6 months.
What actions should be taken?
1. Identifying significant controllers;
2. Notifying the significant controllers the new rules and considering any relevant overseas data / privacy protections provisions;
3. Giving notices to significant controllers and others;
4. Obtaining all the information required;
5. Creating and entering particulars in a compliant SCR;
6. Notifying the Companies Registrar of the location of the SCR;
7. Appointing a designated representative to assist compliance with the SCR rules and to facilitate with inspection by law enforcement officers and the Companies Registry;
8. Updating information in the SCR.
The requirement to keep a SCR applies to all companies incorporated in Hong Kong, including limited companies and unlimited companies. However, those which have their shares listed on the Stock Exchange of Hong Kong are exempted. Till now, Tannet has helped hundreds of HK companies copy with SCR. Should you have any need, we are here to help.
Contact Us
If you have further inquiries, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Shenzhen hotline at 86-755-82143422 or Hong Kong hotline at 852-27826888, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu, Shenzhen, China.
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