Is Your Significant Controllers Register (SCR) Ready?
Contributed by Bridges Executive Centre
16 August, 2018
Under the latest Companies (Amendment) Ordinance 2018, effective from 1st of March 2018, every HK corporation is required to keep its Significant Controllers Register (SCR) for identifying the particulars of those who have significant control over the company (a.k.a. significant controllers), and it should be accessible by law enforcement.
Ensure your company has well fulfilled this requirement to stay away from Govt penalty!
Who's a Significant Controller of the Company?
A significant controller includes:
- a registrable person who is a natural person;
- a registrable legal entity which is a shareholder of the company that has significant control over the company, meaning generally:
The person holds directly or indirectly more than 25% of the issued shares in the company. One scenario needs your attention is that even your company B is owned by another mother company A or it has more than 25% of the shares of company B, then the owner of mother company A should be identified as the significant controller of company B by owning more than 25% of the shares of company B indirectly.
What to Include & Where to Keep the SCR?
The SCR should contain the required particulars of every significant controller(s) and designated representative of the company. Every company must appoint at least one person located in HK as designated representative to provide assistance relating to the SCR of the company to law enforcement officers. The SCR can be kept at the registered office of the company or the same place as the register of members or any other place in HK by submitting a declaration form within 15 days after the SCR is first kept at that place.
We can act as your Designated Representative for the SCR to save your time and hassles.
What Should I Do Next?
You should have all required particulars on the SCR well-ready before 1st March 2018 (if not, please act fast). Then, start keeping your company's SCR at one place and coordinate with your designated representative to provide assistance relating to the SCR to law enforcement officers at any inspections.
If you're not sure about how to comply with this Govt requirement properly based on your case background, feel free to chat live with our company secretary team here today for further support. Rest assured the documents will be managed in good hands and safely guarded.
Our Company Secretarial Service Package Already Includes:
- Prepare the SCR under the Govt required format, keep it at the registered office address (please find location details here: Bridges Registered Office) and act as your company's designated representative for the SCR.
- Help prepare the required paperwork if the SCR is neither kept at your registered office address nor same place as the register of members.
- Other company secretarial compliance like filing of Annual Return, etc.
As said at the beginning, under this mandatory requirement from the HK Companies Registry, every company incorporated in HK is required to keep its Significant Controllers Register, no matter the company's significant controller is a registrable person or a legal entity.
* Failure to comply with the above obligations is a criminal offence, meaning the company and every responsible person of the company will be liable to a fine at level 4 (i.e. HK$25,000). Where applicable, there is also a further daily fine of HK$700 (e.g. the situation happens continuously). Please refer to: HK Companies Registry for more details. All information contained here shall be subject to the final announcement by the HKSAR Govt and the Companies Registry.
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