News: About the non-public beneficiary registries in Hong Kong

About the non-public beneficiary registries in Hong Kong

The Companies Act  2017 (in Hong Kong) has officially published a draft of revisions that include list of people with significant control (PSC).

The project was published on June 23 of present year, and it comes into force in January 1, 2018.

Once amendments come into force all Hong Kong companies will be required to maintain the register, with the exception of companies with quoted shares on the Hong Kong stock exchange.

Each company which is registered on the territory of Hong Kong will be responsible for the correct / reliable maintenance of the register.

According to the law, people with significant control are:

• Persons who have power to appoint or dismiss directors of the company.
• Persons (legal or natural) who have over 25 percent of the voting rights in the company, or more than 25 percent of its shares.
• Persons who have the right to manage the activities of the company or manage the activities of the trust.

The following data will be indicated in the register:

• for legal entities:

- Company name;
- address;
- organizational and legal form and country of registration;
- the date from which the entity obtained significant control;
- what kind of control is exercised by the entity.

• for individuals:

- FULL NAME;
- address;
- identification number and the issuing country;
- the date from which the person obtained significant control;;
- what kind of control is exercised by the person.

The register will be kept for six years, it will be compiled within two weeks, otherwise the company will be fined for a 25,000 HKD.

The register will be available for law police, as well as to the persons indicated in the PSC register.

For more information, please contact Law & Trust International. Consultations are provided by phone, by chat or during a personal interview at the company's offices.