Companies (Amendment) (No.2) Bill 2024 gazetted
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The Bill proposes to introduce a company re-domiciliation regime to enable non-Hong Kong-incorporated companies to re-domicile to Hong Kong while maintaining their legal identities as a body corporate and ensuring business continuity without the need to go through complicated and costly judicial procedures. To ensure the integrity of the re-domiciled companies, the requirements concerning general background, integrity, member and creditor protection and solvency, etc must be fulfilled by the applicants. Generally speaking, re-domiciled companies will have the same rights as any locally incorporated companies of their kind in Hong Kong, and will be required to comply with the requirements under the Companies Ordinance (Cap. 622).
The Government spokesperson said, "The proposal will address the existing market demand for a simple and accessible re-domiciliation mechanism for companies to transfer their domicile to Hong Kong in light of the increasing compliance costs in offshore jurisdictions. While incoming companies may benefit from Hong Kong's strengths in our corporate governance regime, rule of law, taxation system and professional services, they may in turn bring demand for professional services, investment and job opportunities in the local markets."
The Government has conducted a public consultation, and consulted the Legislative Council (LegCo) Panel on Financial Affairs in 2023. The proposal is unanimously supported by the general public and the market. In July 2024, the Government announced the consultation conclusion with the legislative proposal incorporating views collected from the consultation exercise as appropriate.
The Bill will be introduced into the LegCo for first reading on January 8, 2025.
Ends/Friday, December 20, 2024
Issued at HKT 11:00
Issued at HKT 11:00
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