What are the requirements for registering a trust company?
A registered trust company in Hong Kong can provide a range of trust services, including property management, appointment by the court as a trustee, or application to become an approved trustee of an MPF scheme. In this article, you will learn how to register as a trust company in Hong Kong.
What companies can be registered as a trust company?
Generally speaking, all locally incorporated companies, except private companies within the meaning of section 11 of the Companies Ordinance (Cap 622), are entitled to apply in writing to the Companies Registry to become a trust company, subject to Part 8 of the Trustee Ordinance.
To be registered as a trust company, a company must satisfy the following prescribed conditions.
The objects of the company as set out in its articles of association are limited to some or all of the objects set out in section 81 of the Trustee Ordinance
the issued share capital of the company is not less than HK$3,000,000
at least HK$3 million of the issued share capital is fully paid up in cash (subject to confirmation by the directors)
the board of directors is duly appointed in accordance with the articles of association of the company (the company must have at least two directors)
the company has
deposited in the name of the Director of Accounting Services a sum of not less than HK$1,500,000 (being an account opened with “the Director of Accounting Services as the representative of (name of the company to be registered as a trust company)”) with an authorized institution within the meaning of section 2 of the Banking Ordinance (Cap. 155) and has lodged with the Director of Accounting Services a receipt for that sum issued by that authorized institution; or
deposit in the name of the Director of Accounting Services a sum of not less than HK$1,500,000 with a subsidiary financial company of a bank within the meaning of section 2 of the Banking Ordinance and submit to the Director of Accounting Services a receipt issued by the financial company for that sum; or
deposit with the Director of Accounting Services a letter of guarantee given by a bank within the meaning of section 2 of the Banking Ordinance on terms acceptable to the Director of Accounting Services; and
the company may discharge its obligations to the shareholders other than its liabilities to the shareholders without using the said deposits (subject to confirmation by the directors).
How do I apply for registration as a trust company?
You can download the relevant application form from the Companies Registry website under “Forms” – “Other Forms” and mail or deliver the completed application form directly to the Companies Registry. The relevant application fees are as follows.
The application fee is HK$11,250.
The fee for issuing the Certificate of Registration is HK$840, which is refundable in the event that the application is not approved.
If submitting by post, please make a crossed cheque payable to the Companies Registry in Hong Kong dollars.
Upon application by the Companies Registry, a Certificate of Registration of Trust Company will normally be issued within 10 working days of receipt of the above deposit.
The above information is for reference only. If you have any questions about taxation or accounting, it is always wise to seek advice from a professional accountant and we welcome your enquiries.