The Hong Kong administration is always in the race to make the business environment better and more appealing. If you have a company or planning to register one in Hong Kong, the Companies Amendment Bill of 2017 that was passed on 24th January of 2018 has introduced a new requirement.
You will now be required to keep a Significant Controllers Register (SCR). What exactly is SCR? Here are the four most crucial things you need to know about the register of beneficial owners Hong Kong.
Who should keep the Significant Controllers Register?
The SGR is a requirement for all the companies operating in Hong Kong. This means that whether your company has been in operation for a number or it is a new entity, you must comply with the new regulation. The Hong Kong administration targets to make inspection of companies, liaison, and compliance with companies laws easy. Here are the main companies that should maintain the SCR.
- Dormant companies.
- Financial institutions.
- Charitable organizations.
- Companies limited by guarantee.
- All companies incorporated in Hong Kong.
- NOTE: The only companies exempted from the list are those listed companied and foreign companies registered under Part 16 of HKCO.
The details to include in the Hong Kong beneficial ownership register
The Significant Controllers Register has to contain information about the significant controllers of the respective company. This means that the person/s with over 25% shareholding (significant control) in a Hong Kong company has to be in the register. Note that this applies to both persons and entities.
The significant control under the new can also be the person who exercises significant voting control (25% of votes) over the company. According to the Hong Kong guideline on beneficial ownership register Hong Kong, people with over 25% control in companies have rights and powers such as the ability to veto appointments and business plans. They, therefore, control how the enterprise operates.
The main focus of Hong Kong administration is to understand these entities that have huge control of the registered companies. Therefore, if you have significant control over the company, here are the details to capture in the significant controllers register Hong Kong.
- The names and address of the person and the shareholding in the respective company.
- The passport number or ID card number.
- The date when the individual became a registrable person and the nature of control.
- If SCR is an entity, you need to capture the name, address, registration No, legal form, and date of becoming registrable legal entity.