{"id":92184,"date":"2024-01-04T10:02:26","date_gmt":"2024-01-04T02:02:26","guid":{"rendered":"https:\/\/premiatnc.com\/hk\/?p=92184"},"modified":"2024-01-04T10:03:43","modified_gmt":"2024-01-04T02:03:43","slug":"hong-kong-companies-ordinance","status":"publish","type":"post","link":"https:\/\/premiatnc.com\/hk\/blog\/hong-kong-companies-ordinance\/","title":{"rendered":"What New Business Owners Need To Know About The Hong Kong Companies Ordinance"},"content":{"rendered":"\n
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Suppose you are looking to start a business in Hong Kong<\/a>. In that case, the Hong Kong Companies Ordinance (Companies Act) is an official document that sets out the scope and limits of how businesses can function and operate within Hong Kong.<\/p>\n\n\n\n

If you have a company or are looking into starting one in Hong Kong then it is essential to understand and find out what their Company Law is all about.<\/p>\n\n\n\n

For a long time, Hong Kong has been known to have a pro-business environment that caters well to all types of traders, companies, and businesses. The government has played a big part in helping local businesses grow and attracting investors from the international market.<\/p>\n\n\n\n

What is the purpose of the Hong Kong Companies Ordinance?<\/h2>\n\n\n\n

With the new Hong Kong Companies Ordinance, the government wants to focus on enhancing the country\u2019s corporate governance, giving companies within Hong Kong better regulation, keeping a better watch on the country\u2019s business environment, and modernizing the business laws to make them fit today\u2019s business world better.<\/p>\n\n\n\n

The new Hong Kong Company Law enables the country to keep up and be on the same framework development regarding the standing of international businesses. The new law also makes Hong Kong an excellent country for entrepreneurs with the company\u2019s Ordinance enhancing the country\u2019s business status internationally.<\/p>\n\n\n\n

Companies that are in Hong Kong, as well as foreign companies that are registered in Hong Kong, are required to follow the Companies Ordinance which would also include any newly incorporated companies.<\/a><\/p>\n\n\n\n

Old Companies Ordinance VS New Companies Ordinance<\/h2>\n\n\n\n

On March 3, 2014, Hong Kong\u2019s old Companies Ordinance (Cap. 32), which had existed for more than 50 years, was updated to the latest Companies Ordinance (Cap. 622) around Hong Kong.<\/p>\n\n\n\n

This updated Company Ordinance went into effect throughout the middle of the year 2006. The new Companies Ordinance is a thorough revision of the previous Corporation Act that aims to modernize Hong Kong\u2019s enterprise legislation and strengthen Hong Kong\u2019s position as a significant global financial and commercial hub.<\/p>\n\n\n\n

In contrast to the old Companies Ordinance, this revised Companies Ordinance has been structured using \u2018clear and straightforward English,\u201d making it easier for its readers, such as directors, board committees, and accountants, to understand its requirements.<\/p>\n\n\n\n

Thousands of pages worth of criteria are inside this new Companies Ordinance. Comprehensive answers are provided through its 921 parts and 11 tables, which address a wide range of topics covering business formation and registration, common shares the compilation of accounting records and executives\u2019 reports, auditing, and more.<\/p>\n\n\n\n

What is the New Inspection Regime?<\/h2>\n\n\n\n

The main benefit of this new inspection regime is the elimination of unrestricted open access to the URA for shareholders, and the complete IDN of the respective business officials included within the Corporations Registry.<\/p>\n\n\n\n

Just the corresponding addresses of every director, as well as the partial IDNS of boards, corporate executives, and some other key personnel and individuals would be made freely available to the public scrutiny inside the new system across all papers that are present to the Corporations Registry.<\/p>\n\n\n\n

Having the exception of some situations, in which such disclaimer by the CR would be permitted with a judicial order or even under segment 58(3) of the Corporations Act the URA, as well as the full IDN among those people, would only be obtainable to disparate factions of officials or personnel as prescribed under section 12(1) of the Company (Residential Addresses and IDN) Rules (\u201cCERAIN)A) (Cap. 622).<\/p>\n\n\n\n

The second phase of\u00a0this new structure or arrangement\u00a0will begin on October 24, 2022. and the following section will go through the specifics of the most important modifications.<\/p>\n\n\n\n

The overview of the New Inspection Regime, Phase II<\/h2>\n\n\n\n

The Directory for Directors inside the Corporations Registry may no longer include any personally identifiable data and Information but instead provide correspondence addresses as well as limited IDN for open and public access.<\/p>\n\n\n\n

The director\u2019s residence address will no longer be used as the notifying address; instead, they will use the director\u2019s communication address information, as per Company Registry Extemal Circular No.3\/2022 as well as C(RAIN), commencing with the start of Phase II.<\/p>\n\n\n\n

In the event that a director\u2019s intended corresponding address differs from the applied or registered office of the business, the board will be required to inform the Registry of such change of address within 15 days just after the arrangement\u2019s effective date.<\/p>\n\n\n\n

When no request is approved by the date described above, they would substitute the firm\u2019s registered business address<\/a> for the individual\u2019s communication address. Only designated people will be willing to qualify for the Registry once the change is made in order to get access to that confidential data.<\/p>\n\n\n\n

Once Phase II has begun, who can qualify the Corporations Registry to grant access to the Confidential Information?<\/h3>\n\n\n\n

Those who fall within the definition of specified people under section 12(1) of the C(RAIN) must fulfil one of the following:<\/p>\n\n\n\n