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Tel：+86 400 118 5939Hong Kong, as the most favored offshore company registration location for mainland Chinese businessmen, attracts a large number of mainland Chinese businessmen to register Hong Kong companies and carry out offshore business every year. But as one of the regions with the most sound legal system in the world, Hong Kong has clear and detailed regulations on the behavior of Hong Kong companies. Among these regulations, hanging a water sign for Hong Kong companies is an important but easily overlooked issue.
Below, Hongyuan International Consulting will explain the relevant requirements for electronic water signs of Hong Kong companies, as follows:
1. What is a Hong Kong company water label
The display of company names in Hong Kong is commonly known as hanging water signs. Water signs actually refer to the corporate sign of each company. When entering the office lobby, the electronic sign displaying the company name is the water sign in the Hong Kong sense. According to Chapter 622B of the Companies Ordinance of the Hong Kong Special Administrative Region Registry, the registry requires that an electronic plaque displaying the company name must be placed at each registered address, and the Hong Kong company name registered at that address must be displayed alternately every minute. From time to time, registry staff will conduct on-site inspections and supervision. If it is found that the company name is not displayed on the plaque, a fine will be imposed.
In order to comply with the regulations of the Hong Kong Companies Registry, many companies have launched Hong Kong water sign rental services, displaying their company name plaques in Hong Kong office buildings. Hong Kong water sign rental refers to hanging company name plaques at the registered address in Hong Kong through physical or electronic water signs, in order to comply with the provisions of the Hong Kong Companies Ordinance on the legal operation of enterprises.
2. Why do Hong Kong companies need to hang water labels
According to the requirements of the Hong Kong Registry, Hong Kong companies must display their name at their registered office and business premises, and place it in a location that is easily visible to visitors. If a company purchases physical water sign rental services, it can set up a company name sign at the reception desk in the center of the office area to showcase its corporate image in Hong Kong office buildings, effectively enhancing the corporate image of the Hong Kong company.
The common practice in the industry is to place an LED display screen or LCD TV screen at the front desk of the office, and put the list of all companies registered at the registered address into the system, which will be displayed in order on the LED display screen.
The Hong Kong Registry requires Hong Kong companies to hang water labels. Due to the uncertainty of spot checks, some Hong Kong companies hold a lucky mentality and think that hanging or not is irrelevant. However, if a Hong Kong company is found by the Hong Kong registration office to not have a water sign, it will be fined HKD 600-10000 and an additional HKD 20 per day, calculated from the specific establishment time of the Hong Kong company. Although the punishment is not particularly severe, it will have a greater or lesser impact on the reputation of Hong Kong companies.
From this, it can be seen that Hong Kong has extremely strict and meticulous management of companies registered in its jurisdiction, and a slight lack of attention can lead to varying degrees of punishment. In order to avoid fines and damage to corporate reputation, it is recommended that newly registered Hong Kong companies should follow the requirements of the Hong Kong Registry and handle water license business as soon as possible.
Hong Kong companies that have not processed water license business can consult with Hongyuan International.
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