.png)
In the early stages of a startup or an online store, a physical office may not be necessary due to limited budget. However, under legal requirements in Hong Kong, both limited and unlimited companies must provide a "registered address" during establishment. As business needs evolve, a company's address may change, leading to confusion regarding registered address requirements.
What are the legal obligations?
Is it permissible to use a virtual office service?
What are the procedures for updating a company address?
These are the common questions from start-up companies. The following article addresses common FAQs related to a company’s registered address.
What Are the Uses for a Company Registered Address in Hong Kong?
The registered address of a company in Hong Kong is a statutory correspondence address that must be provided by ALL the company. All registered entities, whether limited or unlimited, are required to have a registered address to obtain a business registration certificate.
This address is used to receive important correspondence, such as renewal notices for the business registration certificate and profit tax returns, from government departments and banks.
Notably, the registered address can differ from the company's actual place of business, and corporate service providers often offer registered office or virtual office services to cater for such needs.
What Are the Requirements for a Company Registered Address in Hong Kong?
Whether it's for the head office or a branch, the "Company Registered Address" in Hong Kong must meet the following conditions:
The address must be able to receive correspondence from government agencies, such as the Inland Revenue Department and other official entities.
It must be a physical address located in Hong Kong; overseas addresses are not permitted.
P.O. box addresses are not allowed.
Can I use a residential address as my "company registered address"?
While the Companies Ordinance does not impose any specific restrictions, but it is NOT advisable to proceed for the following reasons:
A company’s registered address is publicly accessible. This applies to both limited and unlimited companies, allowing the public to view personal information of directors, shareholders, and partners, including ID numbers, on the government website. If privacy is a concern for you, we at Biz & Bird advise against using a residential address as the company’s registered address.
Government departments and tax authorities may occasionally conduct visits or sudden inspections to ensure compliance with regulations regarding the display of business registration certificates and significant controller registers. Failure to comply with the above requirements may lead to law enforcement.
Using a residential address for your business could violate the terms of your lease agreement, particularly if the property is rented, or the usage of a residential property. Entrepreneurs should carefully review their terms of the lease to confirm whether commercial use is permitted, as this could also contravene land lease agreements, potentially leading to eviction or loss of occupancy.
Since a company's registered address is publicly accessible, using a business address can create a more trustworthy impression for customers. This enhances their confidence in your business and contributes to a more professional image.
Consequently, many entrepreneurs may opt for the one-stop virtual office services offered by company secretarial service providers.
What Is a Virtual Office?
When startups are unable to find a suitable business address or are concerned about recurring operating costs, many opt for virtual office services .
These services allow secretarial companies to provide their address as the registered office address for other businesses.
Since a company’s registered address is public information accessible through government’s online search systems, using a virtual office can help protect personal information from being disclosed. This approach prevents the need to use an individual's residential address as the company’s registered address, mitigating privacy risks.
Is It Legal to Use a Virtual Office for Company Registration?
You might wonder whether it's legal to use a virtual office service and use the address provided by the secretarial company as your company's registered address.
The key of using virtual office services hinges on whether the secretarial company possesses a " Trust or Company Service Provider Licence" (TCSP license). Under the Anti-Money Laundering Ordinance, any provider of virtual office services in Hong Kong must hold this license; otherwise, it is considered illegal.
Before renting virtual office services, it's advisable to verify that if the secretarial company holds such licenses. You can check the authenticity of the secretarial company in the TCSP license Register at the Company Registry to ensure compliance.
Biz & Bird is licensed as a corporate service provider in Hong Kong, with Trust or Company Service Provider Licence number: TC009081. If you have any questions about our virtual office services, please feel free to reach out.
What Are the Benefits of Using Virtual Office Services?
Utilizing virtual office services from a corporate service provider offers several advantages for startups:
Cost Efficiency: Renting a physical office in Hong Kong can be quite expensive, often ranging from a few thousands to tens of thousands of Hong Kong dollars per month. For startups and small businesses, virtual offices present a much more economical option, with services available for just a less than one hundred dollars per month—saving you significantly on costs.
Professional Image: A virtual office allows startups to establish a registered address in a prime business district without the need for a physical office. This address can be used on business cards, letters, and other promotional materials, helping to enhance your corporate image.
Convenience for Overseas Entrepreneurs: For entrepreneurs based overseas or in mainland China who may not frequently visit Hong Kong, using a secretarial service company’s address as the registered office ensures timely notification of all company correspondence. The service provider can assist you to efficiently handle any incoming mail.
Flexible Communication: You can receive letters from Hong Kong government departments, banks, and other businesses via email or WhatsApp at any time. After receiving correspondence, Biz & Bird can assist with sending, receiving, and scanning letters, allowing you to access important documents whenever you need them.
Procedure for Changing a Company Registered Address
If a company intends to change its address, it must notify the relevant government department in writing within one month of the change, as required by current legislation.
Unlimited companies need to apply to the Business Registration Office, while limited companies must inform both the Business Registration Office and the Companies Registry.
Procedure for Changing the Registered Address of an Unlimited Company
Submit the "Notice of Change of Business Address Form (IRC 3111A)" to the Business Registration Office.
Procedure for Changing the Registered Address of a Limited Company
Submit the "Notice of Change of Business Address Form (IRC 3111A)" to the Business Registration Office.
Submit the "Notice of Change of Address of Registered Office Form (NR1)" to the Companies Registry.
Conclusion
Understanding the significance of a company's registered address and the updating address procedure is essential for smooth operations. Utilizing the virtual office services offered by a corporate service provider can significantly reduce operational rent costs, allowing startups to allocate more funds for daily business activities. Lastly, remember to update your address promptly to comply with legal requirements and maintain corporate credibility!
Comentarios