As a business owner, you may not realize the new ordinance announced by the Companies Registry. We now introduce the new ordinance which is about company directory sign.
Under the new Companies Ordinance (“the new CO”), section 659 provides for the making of subsidiary legislation to prescribe the requirements for the display and disclosure of registered names by companies and for the disclosure of their liability status. The requirements are set out in the Companies (Disclosure of Company Name and Liability Status) Regulation (Cap. 622B) (“the Regulation”) to provide protection for persons dealing with a company.
To facilitate electronic display of company names at a location which serves as the registered office or business venue for multiple companies.
The new Regulation states that, if 6 companies or above are registered in same location, it is required to display the business name at the location is complied with if the registered name is displayed through an electronic device for at least 15 continuous seconds at least once in every 4 minutes or if the registered name is capable of being displayed within 4 minutes after a request to make the display is made through the electronic device (section 3(3) of the Regulation).
If registered business name is not displayed in registered area, a fine of maximum HK$ 10,000 will be charged by the Companies Registry. Therefore, if you have not displayed your directory sign yet, we suggest you to do it as soon as possible.