Connect with us

China

Hong Kong Announces Changes to Beneficial Ownership Regime

Avatar

Published

on

Hong Kong’s Financial Services and Treasury Bureau (FSTB) recently issued a consultation document on amending the Companies Ordinance law.

If the amendment proposal is approved, companies incorporated in Hong Kong will need to identify their beneficial owners and register with the Hong Kong Companies Registrars.

This rule applies to all companies incorporated in Hong Kong, including those limited by shares,  guarantee, and unlimited companies. However, publicly listed companies will be exempt from the proposed requirements as the Securities and Futures Ordinance already has a stringent set of rules requiring listed companies to register their interests of shares.

Given Hong Kong’s strong commitment to global governance on combating money laundering and terrorist financing, it is highly likely that it will introduce a bill to the Legislative Council in the second quarter of 2017.

It is recommended that Hong Kong-incorporated companies stay current with the ongoing changes so as to make adjustments to comply with the laws and mitigate potential business losses.

Definition of beneficial owner

The FSTB adopts a similar definition of “beneficial owner” as that  adopted by the UK, Italy, Spain, Belgium, and Switzerland, and that proposed by Financial Action Task Force, an intergovernmental body developing and promoting policies to combat money laundering and terrorist financing. Under the proposed amendments, a beneficial owner in relation to a company is an individual who meets one or more of the following specified conditions:

  • Directly or indirectly holding more than 25 percent of the shares;
  • Directly or indirectly holding more than 25 percent of the voting rights;
  • Directly or indirectly holding the right to appoint or remove a majority of directors;
  • Otherwise having the right to exercise, or actually exercising, significant influence or control;
  • Having the right to exercise, or actually exercising, significant influence or control over the activities of a trust or a firm that is not a legal person, but whose trustees or members satisfy any of the first four conditions (in their capacity as such) in relation to the company, or would do so if they were individuals.

Register of people with significant control

When registering beneficial ownership information with the Hong Kong Companies Registrars, a company needs to accurately file a “Register of People with Significant Control” (PSC register) in a timely manner. A person with significant control (PSC) is an individual who meets one or more of the specified conditions set out in the above definitions for beneficial owners (i.e. a registrable individual).

By Dezan Shira & Associates. Editor: Weining Hu

Source : Hong Kong Announces Changes to Beneficial Ownership Regime

Continue Reading
Advertisement Load WordPress Sites in as fast as 37ms!
Comments

China

Thailand awarded Weibo 2019’s most popular destination

Chinese tourists are beginning to move from mainstream cities to emerging travel destinations; such as, the second tier cities, and the Tourism Authority of Thailand (TAT) hopes to provide Chinese tourists with quality information services

Tourism Authority Thailand

Published

on

Thailand was recently awarded as one of the “most anticipated and popular outbound tourist destination of 2019” due to its high-quality content and high click-through on the Weibo Page.

(more…)
Continue Reading

Banking

Could China’s financial repression be good for growth?

China’s financial reform and development over the past four decades could be described as strong in establishing financial institutions and growing financial assets, but weak in liberalising financial markets and improving corporate governance.

East Asia Forum

Published

on

When China began economic reform in 1978, it had only one financial institution — the People’s Bank of China. As a centrally planned economy, the state arranged the transfer of funds and there was little demand for financial intermediation.

(more…)
Continue Reading

China

Is there a China model?

But what exactly is the China model and does it pose a threat to the Western model of liberal democracy and free markets?

East Asia Forum

Published

on

The US–China trade war has brought to the boil a simmering strategic rivalry between Washington and Beijing that some have begun to describe as a new Cold War.

(more…)
Continue Reading

Most Read

Upcoming Events

Sep 19

ASEAN (Bangkok)Toys and Preschool Expo

September 19 @ 10:00 am - September 21 @ 7:00 pm BMT
Oct 16

GovInsider Live

October 16 - October 17
Nov 27

The Future Energy Show Thailand

November 27 @ 10:00 am - November 28 @ 5:30 pm BMT
Dec 05

The Healthcare+ Expo Taiwan

December 5 @ 9:00 am - December 8 @ 5:30 pm BMT

Press Release

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 11,077 other subscribers

Trending