Throughout the process of an overseas company registration in Hong Kong and the business of a company, the company needs to raise money from its operations. Usually, they start doing this by taking money from the bank as loans and the creditor of the company is given the security. This security has many forms, one of which is the charge over assets. This charge is a security interest, that is taken for securing the repayment of the loan by the creditor. But before, registering the charges for a company, a few things need to be done first.
The new Overseas company registration in Hong Kong should register the charges existing on property acquired by the company if:
- A company acquires a property that is subjected to a charge and the charge is of a kind that a report of its information would have been compulsory to be delivered to the Registration Authorities in Hong Kong. The report should explain that the property had been delivered for registration by the company after the complete acquisition. Complete acquisition means that it is complete in all respects with complete ownership & revenue records.
The company must deliver a statement of the particulars of the charge or charges, together with a certified copy of the proof (if any) creating the charge, to the Registrar of Companies for registration within the registration period of one month from the acquisition of the said property.
Registration Period
The registration period is: (this also includes an overseas company registration in Hong Kong).
- One month after the date on which the acquisition of the property is completed; or
- Where the property is situated, and the charge created outside Hong Kong, one month after the date on which a certified copy of the instrument or proof creating or evidencing the charge, if dispatched with due carefulness, have been received in Hong Kong in due course of time and the registration authority must acknowledge its proper receipts which is supposed to be kept for further correspondence.
Statement of the particulars of a charge must be at the specified format, and accompanied by the prescribed fee. If a company fails to deliver the statement of the particulars of the charge, then every responsible person of the company & Company itself commits an offence. Each is liable to a fine at level 5 and in the case of a continuing offence will result in a fine of $1000 daily.
Registered non-Hong Kong Company must register charge existing on property acquired if, the company acquires a property that is subjected to any charge and the charge is of a kind that a statement of its particulars would be required to be delivered for registration if it had been created by the registered non-state Company after the acquisition. It never applies to a charge on property if the property was not in Hong Kong when the property was possessed by the registered non-Hong Kong Company.
The registered non-Hong Kong Company having Hong Kong company formation base must deliver a declaration of the particulars of the charge, collectively with a certified copy of the gadget (if any) creating or evidencing the charge, to the Registrar for registration. The listing period is one month after the date on which the attainment is completed.
A statement of the prescribed charge must be on the specified format, and be accompanied by the approved fee.
If the non Hong-Kong company fails to complete above requirements, then the company and every responsible person of the company commits an offence and are liable to a fine of level 5 and continuing offence results in a fine of daily $1,000 daily.
Registered non-Hong Kong Company must register charge existing on property on date of company’s registration under Part 16, if the company possesses a property that is subjected to a charge shaped by the company or a charge that subsisted when the property was attained and the charge is of a kind that a statement of its particulars would have been delivered for registration had the charge been formed by the company, or had the property been acquired by the company, after the company has been registered.
The registered non-Hong Kong Company must deliver a statement of the particulars of the charge, together with a certified copy of the apparatus (if any) creating or the charge evidence, for the registration to the Registrar within the specific period of registration.
If the charge is given in a debenture forming part of a series by orientation to any other instrument containing the charge (whether it was mentioned or not in the debenture) or is contained in a debenture forming part of a series (but not given in the debenture by orientation to any other instrument). Every holder of the debentures of the series is permitted equally to the advantage of the charge.
The registered non-Hong Kong Company is to be regarded as having compliance in relation to the charge if that company delivers a statement of the information of the charge, together with a certified copy of an instrument specified to the Registrar for registration within the registration period.
The reporting & registrations period is one month after the date on which the registered non-Hong Kong Company is registered under Part 16. A statement of the particulars of a charge or charge must be on the specified format and should be accompanied by the prescribed fee. If a registered non-Hong Kong company the company and every person responsible of the company, commits an offence and are liable to a fine of level 5 and continuing offence will result in a fine of $1,000 each day.
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