The government has made amendments to the Companies Ordinance, which stipulates that companies must maintain a Significant Controllers Register (“SCR”), which was implemented on March 1, 2018.
In order to enhance the transparency of beneficial ownership of corporations, to comply with the current international standards for combating money laundering and terrorist financing, and to fulfill Hong Kong's international responsibilities, the revised Companies Ordinance (Chapter 622) requires the establishment of a corporation in Hong Kong.
The company must obtain and maintain the latest information on beneficial ownership, stipulate that a company established in Hong Kong must identify persons who have significant control over it ("significant controller"), and must maintain a significant controller register for the government law enforcement officer to review.
In addition, each company needs to appoint a person to act as the company representative in Hong Kong. This company representative must be a member of the Company residing in Hong Kong; or the professional company holding a "Trust or Company Service Provider" license to provide assistance to the government law enforcement officers in answering matters related to the Significant Controller Register.
IMPORTANT:
Failure to perform the above responsibilities is a criminal offence. The company and each responsible person may be fined at level 4 (ie $25,000) and another fine of $700 per day.
Must be a natural person
Directly or indirectly hold more than 25% of shares or capital, or enjoy more than 25% of profit rights or voting rights