The Hong Kong government has published new legislative proposals for a regulatory regime that would make it simple and easy for overseas companies to redomicile in the city.
The introduction of the regime is of great significance in Hong Kong’s corporate governance policy, and will turn the city “into a cornucopia of enterprises that draws in foreign companies”, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said in a blog post on Wednesday.
“The policy intent of the proposed company re-domiciliation regime is to provide a simple and straightforward route for non-Hong Kong companies to transfer their domicile on the premise that the integrity of Hong Kong’s business environment will be safeguarded.
“These companies may bring demand for professional services, investment and job opportunities, which will transform into a new driving force for development of the local markets.”
The government carried out a two-month public consultation on the proposed regime last March. The proposal was “unanimously supported by the general public and the market”, Hui said.
“The government is determined to strengthen our position as a global business and financial hub,” said the consultation conclusion and legislative proposals published by the Financial Services and the Treasury Bureau (FSTB) on Wednesday.
“We are well aware that the market, especially the insurance sector, has demonstrated interest and demand for re-domiciliation to Hong Kong. We consider that Hong Kong is well positioned to respond to the needs of the market by introducing a company re-domiciliation regime.”
The latest legislative proposals focus on attracting companies with high value-adding potential and economic benefits, the FSTB said.
The proposals include relaxing a requirement for the submission of financial statements to 12 months from three months before the application date, extending the deregistration period to 120 days from 60, retaining the company name and business registration number, simplifying a requirement on company members’ consent, and ensuring proper regulation of financial institutions.
“Our proposed company re-domiciliation regime will enable companies redomiciling to Hong Kong to maintain their legal identities, thereby ensuring their business continuity and reducing the need to go through complicated and costly judicial procedures,” the FSTB proposal said.
Attracting enterprises, investment and talent to Hong Kong is one of the key policy priorities of the government, Financial Secretary Paul Chan Mo-po said in a post on Facebook on Wednesday.
“These companies will bring more investment and employment opportunities to Hong Kong, and the city’s professional and other services are expected to benefit as a result. The government will press ahead with the drafting of the relevant legislation at full speed so that all sectors of society can benefit as soon as possible.”
