HK Enhances Privacy & Transparency in Business Environment
Did you know that Hong Kong is implementing the third phase of its Corporate Inspection Regime? This allows company directors and other involved individuals to request to withhold their protected personal information from public inspection.
The new Inspection Regime under the Companies Ordinance (Cap 622) applies to Hong Kong incorporated businesses and registered non-Hong Kong entities, aiming to enhance the protection of sensitive information while preserving transparency. Initially introduced in 2021, it has been divided into three implementation phases. Under the previous regulations, directors’ or representatives’ residential addresses (URAs) and full identification numbers (IDNs) were available to the public.
Hong Kong companies must undertake specific actions to stay compliant with updated regulatory requirements regarding the correspondence addresses of natural person directors. Key tasks include:
1. Verification of Correspondence Address:
• Verify the correspondence address for each natural person director (including any reserve directors).
• This address can be the company’s registered office, the director’s home address, or another appropriate location.
2. Update the Register of Directors:
• Record each director’s correspondence address and partial identification number in the company’s register of directors.
• This update must be completed before the company’s first annual return date after the start of phase 2 requirements.
3. Submission of Specified Forms to the Companies Registry:
• Submit necessary forms to the Companies Registry if:
• Before phase 2’s commencement, the director’s correspondence address in the register was different from the registered office address.
• A correspondence address, other than the registered office or principal business address (for non-Hong Kong companies), is intended for any director.
Following these steps ensures companies meet new compliance standards, maintain accurate records, and support transparent corporate governance.
Wishing to stay updated or interested in setting up your company in Hong Kong? Let Bolster Group guide you along the journey.