Company Secretary in Hong Kong – All you need to know
Hong Kong is one of the most robust business center points on the planet for incorporating an organization. There is a scope of incredible honors to draw in numerous unfamiliar financial backers and business people; notwithstanding, they should meet specific prerequisites for a Hong Kong company incorporation. One of the vital prerequisites is to appoint a company secretary in Hong Kong.
Are you new to Hong Kong business and unaware of who a company secretary is and what it does? This article will give you insight into the roles and responsibilities of a company secretary in Hong Kong and how they can benefit your organization. Keep on reading to learn more about it.
Hong Kong Company Secretary
Different nations have different types of entities working under particular roles. To comply with individual laws, organizations have officials known as company secretaries. Hong Kong is one of the most significant financial forces to be reckoned with around the world. Because of this, numerous unfamiliar financial backers need to set up workplaces in Hong Kong. It is essential to have a company secretary in Hong Kong to act in accordance with the companies ordinance of Hong Kong. Let us dive straight into this.
Company secretary in Hong Kong – overview
Hong Kong being the most significant financial force also has its own rules and regulations. In order to comply with the laws, a company secretary is hired. It is imperative to have a company secretary in Hong Kong to act in accordance with the companies ordinance of Hong Kong. Your company will be able to comply with the individual and administrative laws with the help of a company secretary. It is compulsory to have a company secretary as per section 474, cap.622 companies ordinance for every company registered in Hong Kong.
You should not confuse “company secretary” with the name “secretary” because an organization secretary in Hong Kong does more jobs. A company secretary is the organization’s agent whose principal obligation is to guarantee that the organization and its activities are in tandem with every single law and guideline as per the Hong Kong Companies Ordinance. As a rule, the company secretary’s work is of fundamental importance to the administration, direction, and corporate administration of a Hong Kong companies ordinance. In addition to having a company secretary, there is other important information about forming a Hong Kong organization that you should know.
Why should you have a company secretary in Hong Kong?
There are many reasons why having an organization secretary in Hong Kong is important. A company secretary is one of the contributing components to the development and sustainability of an organization. To be specific, there are two significant advantages of choosing a company secretary:
- Bridge between the organization and the Hong Kong government – Not only does an HK company secretary work with directors and shareholders of the organization, they also liaise with and connect with a variety of governments just as administrative bodies that are liable for directing the organization’s activity and exercises.
- Guarantee that the organization will follow the Hong Kong law – There are certain obligations that organisations must meet in terms of regulation to ensure that their businesses thrive in Hong Kong qualified organization secretaries will assist you with comprehension and continue with the right and precise steps to comply with the Hong Kong law, guaranteeing the organization runs efficiently with practically no conflict with the law.
Is it mandatory to have a company secretary in Hong Kong?
The truth is, according to the Companies Ordinance, it is mandatory to have a company secretary. To register a Hong Kong organization, you must choose a company secretary.
Roles and Responsibilities of a Hong Kong Company Secretary
Obligations of a Hong Kong organization secretary are wide in scope, ranging from authoritative to administrative. The following are a few principal obligations of the company secretary:
- Satisfying tax commitments – Tax collection is one of the main concerns to many business owners in Hong Kong. However, there are certain tax matters that Hong Kong companies need to comply with. The company secretary is responsible to ensure that the organization’s tax commitments are tackled on schedule and in the right way.
- Keeping legal books – A Hong Kong organization secretary must save all documents that ought to be prepared for government review if necessary.
- Organizing the company meetings – A Hong Kong organization secretary is responsible for administration and organising company meetings.
- Advise legal changes of the organization – It seems, by all accounts, to be not unexpected that there would be further acclimations to be made after the organization arrangement. The organization secretary is liable for warnings with the in-control authority.
- Other administrative issues – The company secretary is responsible for communicating with investors, administrative bodies, and the Stock Exchange in the organization’s interest. The secretary must also note current improvements in great corporate governance practices to offer the best guidance for the organization’s top managerial staff. The secretary must also research and get experiences in the new market to add to the beginning of business incorporation.
Appointing a company secretary in Hong Kong
Appointing a company secretary can be tricky in Hong Kong. It is evident that you have to choose the best one from the many in the Hong Kong company secretary list. Below are the requirements and the processes to appoint a Hong Kong Company secretary.
As per Section 474 (4) of Cap. 622 Companies Ordinance of Hong Kong, a Hong Kong company secretary should fulfill the following conditions:
- If an individual should be represented, they should be a Hong Kong-based resident.
- If it is a body corporate, they should have its enlisted office or a place of business situated in Hong Kong.
However, that the Hong Kong Stock Exchange under the Listing Rule 3.28 mandates that a recorded organization in Hong Kong can have an organization secretary as an individual and that applicant should satisfy specific prerequisites on academic qualifications or significant experience as follows:
- Being a member of Hong Kong Institute of Chartered Secretaries
- Be a solicitor or barrister
- Be a certified public account
- They must have the same experience that shows their capability to release the discharge of the company secretary. Practical experience can be work history, knowledge of the Listing Rules and other related laws, professional qualification in different locales, etc.
Any postponement or non-compliance with the report of the progressions can lead to penalties as defined by the laws. An organization secretary needs to notice different prerequisites and make sure that the organization is compliant.
To register for a company secretary in Hong Kong, there are explicit reports that should be submitted:
- Assuming the company secretary is a characteristic individual, he/she should include:
- The current forename and last name, previous name and assumed names (if any);
- The address;
- The number of ID, or a number and issuing country of the passport
- Assuming the company secretary is a corporate entity, it should include:
- The corporate name;
- Address of administrative center
The appointment of a company secretary has to be in accordance with the provisions of the Companies Ordinance of Hong Kong (Cap 622). All businesses have to follow the procedure for the appointment of a company secretary in Hong Kong. One should follow the following process for the arrangement of an organization secretary in Hong Kong:
- The organization must meet compliance in designating the company secretary in Hong Kong. One must make the appointment according to segment 474 of the Companies Ordinance of Hong Kong.
- One must pass a resolution in the Board Meeting concerning the appointment of the company secretary.
- The moment a resolution is passed in the executive gathering, the same must be approved in the general meeting.
- On the off chance that the organization doesn’t make the essential strides in selecting a company secretary, then, at that point, the recorder of organizations would assume control over the method involved with designating a company secretary.
- According to area 476(1) of the organizations’ law of Hong Kong, the registrar has the ability to delegate a company secretary for the organization.
- At the point when the registrar is appointing the company secretary, such arrangement should be as per the provisions of section 474 of the companies’ law.
How to choose the right company secretary in Hong Kong?
A perfect company secretary ought to have top corporate governance abilities like tact and the capacity to appreciate anyone on a profound level. Different skills that the secretary should have are:
- Critical thinking abilities
- Planning abilities
- Communication skills
- Excellent Teamwork
Startupr provides a full range of company secretarial services?
The job of a company secretary in Hong Kong is moderately vital in assisting your business to run smoothly, mainly to be utterly consistent with government laws and guidelines. Also, it is an essential prerequisite for any Hong Kong organization before it is incorporated.
Now that you know all about a company secretary in Hong Kong, you might be thinking about how you can find the right company secretary. One sure way to get the best is to choose a professional. Professionals operate company secretary services agencies. These companies have a lot of experience assisting other companies in Hong Kong. One such company is Startupr, we offer a full range of company secretarial services. Contact us now to know more!