Offshore Series | Starting December 27th, Hong Kong Companies to Adopt "Unique Business Identification Code"
According to an announcement from the Hong Kong Companies Registry, starting from December 27, 2023, Hong Kong companies will utilize the Business Registration Number (BR) as the "Unique Business Identification Code" for different entities. In other words, the Corporate Identification Number (CI Number) will be replaced by the Business Registration Number.
This move aims to uphold Hong Kong's position as a leading global international financial center. It aligns with the simultaneous advancement of the new generation Integrated Companies Registry Information System (ICRIS) and involves modifications to relevant laws, regulations, and forms.
Role of the "Unique Business Identifier"
The concept of the "Unique Business Identifier" has been adopted in many other economies worldwide, allowing governments and businesses to uniquely identify legal entities in various transactions and regulatory interactions. Examples include Singapore's Unique Entity Number (UEN) and mainland China's Unified Social Credit Code.
Adopting the Business Registration Number as the "Unique Business Identification Code" for companies and entities serves several crucial purposes:
Tax Certification: Vital for tax declarations with the Hong Kong Inland Revenue Department.
Legal Certification: Considered a crucial indicator of company management, registration, and legitimacy when opening bank accounts or signing contracts with clients and suppliers.
Company Searches: Key number for company searches and identifying a company or entity.
Enhancing Efficiency: Reduces errors in identifying the same entity using different identifiers, facilitating communication and data exchange between departments or businesses.
Strengthening Legal Oversight: Aids in improving the level of government public services and more effective regulation of legal entities.
Implementation in Two Phases
The implementation of the "Unique Business Identification Code" by the Hong Kong Companies Registry occurs in two phases:
The first phase began on November 1, 2021, and applied to Limited Partnership Funds.
The second phase is scheduled to start on December 27, 2023, and will apply to limited companies, open-ended fund companies, limited liability partnerships, and other types of entities.
After the new regulations take effect, the Companies Registry will still issue company registration certificates. However, the company number in the upper left corner of the registration certificate will be replaced by the Business Registration Number issued by the Hong Kong Inland Revenue Department, serving as the unique business identification code.
Impact on Different Entities
For entities registered before December 27, 2023, their existing registration certificates do not require any changes or applications. The public search system of the registry will automatically update. At that time, the unique business identification code can be queried based on the original company number.
For Hong Kong companies registered after December 27, 2023, the company number on the company registration certificate will be replaced by the unique business identification code.
Transition Arrangements
To accommodate the second phase of the "Unique Business Identifier" implementation, the Hong Kong Companies Registry has revised 117 specified forms and an administrative form titled "Form AD - Correction of Errors in Registered Documents Regarding Print or Writing."
Apart from replacing "Company Number" with the "Unique Business Identifier," other revisions have been made to the forms, such as adopting a new structured format for reporting addresses, revising the format for reporting shareholder details, and adding columns for reporting the license number of the company secretary's trust or company service license.
These revised forms will be used starting from December 27, 2023. As a transitional arrangement, within six months from the implementation date, the Companies Registry will continue to accept existing specified forms under the Companies Ordinance (Chapter 622) and the Companies (Winding-Up and Miscellaneous Provisions) Ordinance (Chapter 32).
However, four weeks after the implementation date (from January 25, 2024), the Companies Registry will no longer accept the following existing specified forms:
Form NNC1 - Incorporation Form (For Companies Limited by Shares)
Form NNC1G - Incorporation Form (For Companies Other Than Companies Limited by Shares)
Form NNC5 - Application for Registration of a Non-Hong Kong Company
Form NN1 - Application for Registration of a Non-Hong Kong Company
For more information on Hong Kong companies and the implementation of the "Unique Business Identifier," please contact our professionals.
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