How to deal with CRS policy after registration of Hong Kong company?

Since Hong Kong joined the CRS, a number of accounts at hang seng bank, HSBC and other Banks in Hong Kong have been investigated or suspended. This situation seriously affects the normal trade of investors, so how to deal with the CRS policy after the registration of Hong Kong companies ?

How does the Hong Kong government cooperate with CRS?

1. ‘The Companies (Amendment) Ordinance 2018 ’provides:A company registered in Hong Kong shall obtain and maintain up-to-date information on beneficial ownership for the‘ Signficant Controllers Register (SCR) ’for inspection by law enforcement officers of the Hong Kong government. If the applicable company fails to comply with the above requirements, the Hong Kong company concerned and each of its Hong Kong liabilities are guilty of an offence and will face fines.

2. Under the Hong Kong companies management ordinance (amendment) ordinance, all companies incorporated in Hong Kong are required to conduct SCR registration. The contents of the registered items must be registered and kept at the address of the registration office or the relevant designated address for inspection by law enforcement officers of the Hong Kong government at any time. Failure to maintain a register of significant controllers will result in a fine of up to hk $25,000 for the company and each person responsible and an additional fine of hk $700 per day. Any person who, in the SCR register or in his reply to the company, makes a false statement without regard to the facts shall be liable on conviction to a maximum penalty of hk $300,000 and imprisonment for 2 years.

3. After the implementation of the new regulations, the organizational structure of Hong Kong companies will be completely transparent, including natural person shareholders, natural person behind the holding company, shareholder background and even the agency of Hong Kong companies. In short, the policy trend across Hong Kong will become increasingly strict and give the government more comprehensive information about Hong Kong companies.

How to deal with CRS policy after registration of Hong Kong company?

1. After the implementation of the CRS policy, the bank of Hong Kong requires users to submit more documents to prove that they are conducting legitimate business; Local bank accounts held by Hong Kong companies that do not meet their obligations will face cancellation.

2. In accordance with CRS rules, other participating countries or territories will also receive information provided by individuals and companies they control, as long as they hold bank account information in the participating countries or territories of CRS.

3.CRS targets Hong Kong companies that evade taxes or file tax returns informally or illegally transfer their assets overseas. So if you register your company and bank account in Hong Kong as a legitimate business, don't worry too much. Just learn to prove your innocence.

4. According to the Hong Kong inland revenue ordinance, failure to declare profits tax for Hong Kong companies in accordance with their actual business conditions is an offence of false reporting and punishable by three years' imprisonment. The punishment will do great harm to the credit of the company's account. At the same time, local Banks in Hong Kong will also ask you for the audit report of Hong Kong companies to verify the operation of Hong Kong companies, especially after the implementation of CRS, the review will be intensified. If it cannot be provided within the prescribed time limit, it will not be conducive to the opening and maintenance of the account, and in serious cases, the existing account may be closed.

Therefore, it is very important to choose a company that can provide you with a HongKong corporate service provider and a company secretary service .

After the establishment of a company, it is natural to develop business, but whether it is to sell products or services, it is necessary to establish a brand, in order to protect the business, the registration of Hong Kong trademark and patent application can not be ignored.

JV Consultants Limited can provide you with comprehensive Hong Kong company registration services, to learn more about Hong Kong company registration services, please visit:http://www.jvchk.com .