In order to improve the transparency of beneficial ownership of Hong Kong company
and fulfill international obligations that prevent money laundering and terrorist, Hong Kong Company Registry department announced the new rules recently as followed:
"Since March 1, 2018, company registered in Hong Kong needs to keep an record of Significant Controller Register (SCR) at the office where the company registered, which is very important as the HK local specific government officers will check every HK company from 1st of March in 2018. "
Who is a Significant Controller of a Company?
1. a registrable person who is a natural person that has significant control over the company; and
2. a registrable legal entity e.g. a company that has significant control over the company and is a shareholder of the company.
A person has significant control over the company, if one or more of the following 5 conditions are met：
1. The person directly or indirectly holds more than 25% of the company's issued shares; or if the company does not have equity, the person directly or indirectly holds the right to share more than 25% of the company's capital or to share more than 25% of the company's profits;
2. The person directly or indirectly holds more than 25% of the company’s voting rights;
3. The person directly or indirectly holds the right to appoint or remove a majority of the directors of the company's board of directors;
4. The person has the right to exercise, or actually exercises, significant influence or control over the company;
5. The person has the right to exercise, or actually exercises, significant influence or control over the activities of a trust or firm, and the trust or firm is not a legal person, but its trustees or members satisfy any of the first four conditions in relation to the company.
What is the Content of the Significant Controller Register?
2. For a registrable person: correspondence address, identity card number (if the person does not have an identity card, the number and issuing country of the passport), or share ratio;
For a registrable legal entity: legal form, registration number, place of incorporation (governing law) and address of registered office, or share ratio;
3. Date of becoming a significant controller
4. Nature of control over the company
5. The latest, correct and effective information of director, member and secretary, e.g. copy of NNC1 and NAR1, BR within validity period.
How long does it take to keep the significant controllers register?
2-3 working days
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