4 Legal Considerations For Raising Capital

Starting a business can be challenging, especially in the real estate world. There are many things to consider, one of which is raising capital for your startup. Although you may be able to build a business with your own money, you’ll likely need some external funds at some point. This setup is especially true when forming a real estate syndication business.  

Essentially, real estate syndication refers to a partnership wherein the investors combine their financial resources to purchase properties for business. Under this business setup, a syndicator or a sponsor is tasked to acquire the property, make repairs, and manage it on behalf of the passive investor. However, raising the necessary capital for this kind of business isn’t easy, especially regarding the legal aspects. You may end up in potential legal trouble when you can’t follow the rules and regulations.  

Read on to learn the four legal considerations for raising capital for your business.  

  • Registration Exemption With The U.S. Securities And Exchange Commission (SEC) 

Raising capital for a real estate business is never easy. Even if private placements can be considered the best alternative for getting funding, there are still rules and regulations that should be followed to prevent investor misinformation, fraud, and other illegal activities. One of these regulations is registering the securities with the SEC of the United States.  

Thankfully, there are exemptions to the said requirement involving private offerings. This is where Regulation D enters the picture. It outlines specific rules and regulations allowing companies that sell securities not to register with the SEC. It aims to help businesses gain easy access to the capital market without paying the costs of an SEC registration.  

Under Registration D, two rules should be kept in mind when it comes to raising capital. These can include: 

  • Rule 506(B): It provides that businesses selling securities can raise any amount of capital from accredited investors, individuals, or entities dealing with securities unregistered by any financial authorities. Moreover, these businesses are prohibited from executing general solicitations or doing any advertising activities for their offerings.  
  • Rule 506(C): It allows businesses to promote private offerings to raise capital but prohibits them from obtaining funding from non-accredited investors.  

Indeed, there are Regulation D rules that should be kept in mind if businesses selling securities want to be exempted from the standard SEC registration. However, some SEC regulations may be rigid or harsh for companies. This is where the enactment of a new piece of legislation that defines the JOBS Act enters the picture. Its primary objective is to loosen the regulations imposed on startups and small businesses. As such, some changes it provides may include making crowdfunding much easier and exemptions available to a wider range of securities issuers. It also simplifies the disclosure and reporting documents required for companies generating less than USD$1 billion in revenue.  

  • Drafting Of A Private Placement Memorandum (PPM) 

Another legal consideration you need to take when raising capital for real estate businesses is drafting a PPM. It’s an essential document that should be filled out to raise funds for real estate. It’s also a document mandated by the SEC for real estate syndication businesses. Without a PPM, you can’t present investment opportunities to accredited and sophisticated investors.  

So, if you want to obtain external funding for your real estate business, make sure to draft a quality PPM.  

  • Avoiding Unregistered Finders  

It’s also essential to stay away from unregistered finders when raising capital for your business. Generally, using a finder classified by the SEC as an unregistered broker-dealer to find investors and sell securities on behalf of the business is prohibited under the securities laws. 

When you violate this condition, your investment offering may become invalid, your business may be required to refund the investors for the money they invested, and your company may incur civil and criminal liability.   

  • Working With Legal Professionals  

Raising capital for a real estate business can be a huge undertaking. Hence, working with legal professionals to avoid mistakes in obtaining funding is crucial. Because it requires compliance with some SEC rules and regulations, you need trustworthy legal professionals who can help you with the process. For example, the lawyer you hire should have valuable securities law experience to help guide you through the capital raising process without legal problems.  


Indeed, raising capital for businesses in the real estate industry can be a challenging process. With all the rules and regulations involved, it can be easy to lose track and make mistakes. Thus, if you don’t want to get into any legal trouble, keep the information mentioned above in mind, and you’ll be able to obtain funds legally and seamlessly.  

Financial and Business Crime Investigations in Indonesia

Karimsyah Law Firms litigation team has worked together with Thomson Reuters Practical Law on an overview of financial crime and business crime in Indonesia.

Please see the links to the publication below:

KarimSyah Law Firm

KarimSyah Law Firm was established in 1997 as one of very few Indonesian firms with both transactional and contentious practices, and has quickly become recognized as one of Indonesia’s premier law firms, in particular with respect to international dispute resolution.

KarimSyah is universally recognized as Indonesia’s market leader in dispute resolution, financing, and resources. Areas of specialisation on the transactional side include oil and gas, energy and infrastructure matters, insurance, all manner of financing and restructuring, including Islamic financing and capital markets, information technology, land transactions, bankruptcy, joint ventures and other cross-border transactions and business structures, mergers and acquisition, and foreign and domestic investments. On the contentious side, the firm handles commercial litigation and both local and international arbitration and mediation, with unique specialisations in medical malpractice defense and aviation disaster settlements.

KarimSyah’s lawyers are qualified in both civil and common law, with long experience representing foreign companies doing business in Indonesia, and vice versa, and are well attuned to the cultural nuances necessary to make cross-border relationships succeed. Our lawyers use their legal skills and knowledge of Indonesian business practices to arrive at a customised legal solution for each client. Working as a team, both internally and together with external financial and other support-service organisations, KarimSyah can lead the client through all aspects of its transaction of business.

Investor Identification Regime at the Trading Level for the Securities Market in Hong Kong


Currently, for securities orders placed by intermediaries for their clients, the trading system of The Stock Exchange of Hong Kong Limited (SEHK) only captures information of the intermediaries, but not of its clients which instruct the orders. When suspicious trading activities arise, the Securities and Futures Commission of Hong Kong (SFC) has to issue notices to the intermediaries to identify the underlying clients, and may not be able to deal with such activities as promptly as the regulator would like to. From the perspective of the intermediaries (including SFC licensed corporations and registered institutions), they have to incur substantial compliance costs in handling with SFC’s enquiries. Thus, the SFC determined to introduce a new investor identification regime for the securities market in Hong Kong so that securities trading orders can be traced to those who give instructions.


The Hong Kong investor identification regime will be launched in the later part of Q4 2022 at the earliest.

Under the new regime, a regulated intermediary is required to assign a unique Broker-to-Client Assigned Number (BCAN) to every client. Each BCAN should be mapped to the client’s identification data (CID). The intermediary should also submit the BCAN-CID matching files of its clients to the SEHK.

When the intermediary submits the client’s order to the SEHK trading system for execution or reports the off-exchange trade order to the SEHK, such on-exchange order or off-exchange trade report is required to include the relevant client’s BCAN.

Off-exchange trades refer to trades conducted outside SEHK’s trading system but are required to be reported to SEHK under the SEHK Trading Rules. They include trades matched between clients of an intermediate or two different intermediaries directly through an alternative liquidity pool as well as trades matched on a pre-IPO trading platform operated by an intermediary licensed or registered to provide automated trading services.

The new regime would facilitate market surveillance by regulators because the originators of the on-exchange orders and off-exchange trades can be identified via their BCANs.

Having said the above, the Hong Kong investor identification regime and the investor identification regime launched on 26 September 2018 for northbound trading under Stock Connect are expected to work independently.

Personal data privacy of clients

An intermediary has to collect each individual client’s CID, including name and identity document number, type, and place of issue. If the client has a Hong Kong identity card but uses different identity documents to open securities accounts, the intermediary should follow up with the client to update the CID with his/her Hong Kong identity card information.

To comply with the Personal Data (Privacy) Ordinance of Hong Kong, intermediaries have to obtain their clients’ consents before submitting their CID to the SEHK. Clients who do not give consents will not be able to purchase securities through the intermediaries but will still be able to sell their securities.

Also, the BCAN should not be generated, assigned or handled in a way which would identify any individual client, compromise the confidentiality of the client’s identity, or give rise to non-compliance with the applicable privacy laws.

With reference to the industry standards and practices, the SFC and SEHK have considered appropriate measures to ensure the security and confidentiality of CID in aspects including data transmission/storage, access to CID, incident management and cybersecurity.

Practical impacts

When taking steps to comply with the investor identification regime, intermediaries are enhancing data security for their clients. Some of them are taking this opportunity to make additional investments in financial technology at the same time, in order to further develop online and mobile clientele and businesses.

The new regime is also described as a “real-name system” for Hong Kong securities trading. In the past, there were incidents where different investors used the same securities account to participate in Hong Kong securities trading. This practice may cease because orders placed by persons other than the securities account holder will be tagged with the BCAN of the account holder who may no longer be willing to let other persons’ orders be taken by the regulators as his/her own orders.

(The author would like to thank Ms. Mandy Kong (paralegal) for her contribution in this article.)

LC Lawyers LLP



Gowling WLG Further Strengthens Presence in the Middle East

Gowling WLG is pleased to announce an expansion of its presence in the Middle East with the opening of a new office in Abu Dhabi.

The firm has more than 30 years of experience in the region, including an established office in Dubai since 2007. Launching an office in Abu Dhabi is a logical next move for the firm with Abu Dhabi clients already accounting for 30% of the firm’s revenue in the UAE.

David Fennell, Chief Executive of Gowling WLG (UK) LLP, said: “We have considerable experience and strength in the Middle East and establishing an office presence in Abu Dhabi is a natural step in order to bolster our services for our clients.”

Tim Casben, Head of Gowling WLG in the UAE, added: “Opening an office in Abu Dhabi is an important step for us and is driven by the significant increase in work that we have been winning in the city. Abu Dhabi represents a clear opportunity for Gowling WLG. The UAE is at the forefront of innovation and sustainable development and has ambitious plans for growth. Our key target sectors of tech, infrastructure and IP in the Middle East are perfectly aligned with the UAE’s ambitions for the future. The opening of our office in Abu Dhabi will enable us to be closer to a number of our core clients and we look forward to building our presence in the capital.”

Gowling WLG’s UAE team includes multilingual lawyers who combine international expertise with local knowledge and influence supporting clients across sector and practice areas including tech, intellectual property, energy and infrastructure and corporate and commercial.

In July, the firm was pleased to announce the arrival of Imran Mufti as a partner in its Projects Group in the UAE. Imran is leading the firm’s Saudi Arabia practice and will be responsible for its relationship with Al Ghazzawi & Partners, Gowling WLG’s strategic partner firm in Saudi Arabia.

A Brief Guide To Digital Asset Protection

Digital assets come in many forms. They can be documents or any other type of file that has financial value. Cryptocurrencies, like Bitcoin, Ethereum, and Litecoin, are digital assets. With its anonymity and high return, more and more individuals and businesses are now putting a significant percentage of their wealth into it.

However, cryptocurrencies are also prone to risks. In countries that treat crypto as property, cryptocurrency holders must report all of their crypto transactions, and gains are taxable. So, anonymity is not guaranteed. If a business or a crypto holder is involved in litigation, the court may order them to disclose their digital assets. That’s why crypto asset protection plays a significant role, so creditors and other claimants cannot go after your digital assets.

Read on to learn how you can protect your digital assets.

Protecting Your Crypto Assets From Creditors And Other Claimants

If you’re holding many digital assets, you need to take extra care to protect them from creditors and other claimants. One way to do this is to create a trust.

What Is A Trust?

A trust is a legal arrangement where a trustee holds and manages property or assets for the benefit of a third party. The settlor is the person who creates the trust and transfers the estate to the trustee. The beneficiary, on the other hand, is the person who will receive the benefits from the trust.

The advantage of setting up a trust is that it can help you protect your assets from creditors, lawsuits, and other claims. If the settlor is sued, the court cannot go after the assets in the trust since the trustee legally owns it.

Another benefit of setting up a trust is that it can help you minimize taxes. Taxing digital assets doesn’t only exist in the United States. Other countries like Thailand have also implemented taxes on cryptocurrencies. So, regardless of where you live, setting up a trust to minimize or even avoid paying taxes on your digital wealth is crucial.

The settlor can put conditions on how the assets can be used and when the beneficiaries can receive them. This can help you minimize estate taxes since the assets in the trust are not included in your estate.

Different Types Of Trusts

Asset protection trusts have different types that you can set up to safeguard your digital wealth.

  • Domestic Asset Protection Trust (DAPT)

A domestic asset protection trust or DAPT is a trust created under the law of your home country where the settlor can be the beneficiary as well. Some find DAPT a more convenient option because you don’t have to deal with the regulations of another country. Creating a DAPT for your crypto assets will not only safeguard your digital wealth from creditors but also from a soon-to-be ex-spouse and other potential claimants.

  • Foreign Asset Protection Trust Or Offshore Trust

A foreign asset protection trust is a trust created in a jurisdiction other than your home country. People who want more privacy and protection of their assets from their home country’s laws use offshore trusts. The laws of the foreign country where the trust is created will govern the trust. If a claimant from your home country sues you, they will have to deal with the foreign country’s laws that have jurisdiction over the trust.

If you’re thinking of setting up an offshore trust for your digital assets, countries with strong asset protection legislation are the ideal places to set this up. They make it hard for foreign authorities to access information about the trust and its assets.

Safeguard Your Digital Wealth From Hackers

Creating a trust will protect your digital assets from creditors and other claimants. But it won’t safeguard your wealth from hackers. Whether you’ve set up a trust, you need to take extra steps to protect your digital assets from hackers.

Here are some of the best ways to do it:

  • Keep Your Crypto In A Cold Wallet

A cold wallet is a cryptocurrency wallet that stores your private keys offline. Storing private keys offline makes it more difficult for hackers to steal them since they need physical access to your cold wallet.

There are two types of cold wallets: hardware and paper. Hardware wallets are physical devices that store your private keys, like a USB. Paper wallets are simply printouts of your private keys. Both hardware and paper wallets are more secure than hot wallets, which store your private keys online.

  • Limit The Number Of People Who Have Access To Your Wallets

When delegating trustee responsibilities, you must limit the number of people who have access to your wallets—the more people who have access, the greater the risk of theft. Since creating a trust means giving someone else control of your assets, choosing the right trustee is essential. Whichever entity you entrust your digital wealth with must carefully determine who should have access to your wallets and to what extent.

Factors you need to consider when choosing a trustee include their expertise, trustworthiness, and ability to follow their client’s instructions.

Final Words

Crypto asset protection is essential, especially in countries treated as property. Setting up a trust is one of the best ways to protect your digital assets from creditors and other potential claimants. But this won’t be enough. You need to designate a qualified trustee, use a cold wallet, and restrict access to your cold wallets.


Glen M. Lindsay joins Leaders in Law as the Real Estate Litigation Law Member in Florida, USA

Leaders in Law the leading platform in its field, is delighted to welcome Glen M. Lindsay as our exclusively recommended & endorsed Real Estate Litigation Law expert in Florida, USA.

Born in Houston, Texas, Glen M. Lindsay earned his B.S. in Communication Studies and Philosophy from Northwestern University in Evanston, Illinois where he was a four-year recipient of the Thomas J. Watson Memorial Scholarship and a joint JD/MBA (Finance) from the University of Miami where he was a Graduate Assistant to Prof. Ann M. Olazabal, Esq. researching issues related to the Sarbanes-Oxley Act and the Private Securities Litigation Reform Act.

Glen’s practice concentrates primarily on business, regulatory and real estate litigation with an emphasis on matters involving fraud and/or deceptive business practices as well as matters at the intersection of commercial litigation and government regulatory compliance.

In 2019, Glen secured an order of dismissal in federal court in a matter of first impression successfully arguing that when attempting to secure a maritime lien on a vessel that designated as a “blocked asset” by the Office of Foreign Asset Control (“OFAC”), the party seeking imposition of the maritime lien must obtain licensure from OFAC prior to bringing an admiralty action. Versilia Supply Service SRL et al. v. M/Y Waku, 0:18-cv-62975-Cohn/Seltzer (Apr. 16, 2019).

Prior to joining Saavedra-Goodwin in 2016, Glen was an attorney with two NLJ 350 law firms where he represented numerous Fortune 500 companies focusing primarily on consumer finance and federal regulatory compliance matters.

Glen has an AV rating from Martindale Hubbell and has been selected as a Rising Star since 2018 by Florida Super Lawyers, a distinction earned by only 2.5% of lawyers. Glen is a member of the Broward County and American Bar associations.

Glen is admitted to the bar in Florida, the U.S. District Courts for the Southern, Middle and Northern Districts of Florida, and the Eleventh Circuit Court of Appeals.

Leaders in Law Global Awards 2022 – Sample Inclusions

Leaders in Law Global Awards 2022 winners will be selected based upon a comprehensive, independent survey of both general counsel and private practice lawyers worldwide. Only firms and practitioners who have met independent international research criteria will be considered.

If you have been nominated for the upcoming Leaders in Law – Global Awards 2022, you will have the opportunity to promote your success in the upcoming publication.

Please see the samples below:

Full Page Inclusion

Half Page Inclusion

Business Card Inclusion

If you would like to be considered or nominate an expert please visit our nominations page here.

You can view our previous winners by clicking here.

Each winning applicant will be promoted across all of our social media platforms please view our coverage last year on our Linkedin.

About Leaders in Law

Business today is fiercely competitive and ensuring the selection of a knowledgeable and cost-effective lawyer when and where you need them is crucial to business success. The Leaders-in-Law platform provides immediate access to Leaders in their practice area throughout the world.

Users of the Leaders-in-Law platform vary from large multi-nationals to successful entrepreneurs. All with one aim: to quickly and easily find the Leader-in-Law they need with the correct expertise in their location.

The selection process for Leaders-in-Law experts is rigorous and many applicants are eliminated during the vetting process. The successful experts who join the Leaders-in-Law all have a proven track record of success, with their own unique attributes and knowledge of their practice area and local requirements.


When Do You Need An Employment Lawyer?

When dealing with legal matters pertaining to work, it is not uncommon to find it beneficial to retain legal counsel. On times, even the most diligent employers will require the assistance of an attorney. Even though you are able to manage many difficulties pertaining to work on your own, there are some situations that are more complex and will require some legal assistance from you.

The legislation governing employment can undergo fast shifts. Every day, the courts and other government agencies release fresh interpretations of these laws, which can sometimes radically invalidate what everyone else thought the law intended.

It is simple to understand why you should seek legal assistance when you find yourself in over your head. When you consider the fact that lawsuits launched by former workers can result in enormous damage awards against the employer, it is reasonable to seek legal help. Follow the link for more

On the other hand, you do not have to consult an attorney every time you review, reprimand, or even terminate the employment of an employee. After all, legal representation is not inexpensive. You will run out of money very soon if you consult a lawyer each time you have to make a choice about your place of employment.

The difficult part is determining which circumstances call for the assistance of a professional and which ones you can manage on your own. The following is a list of activities and concerns that you ought to think about bringing up with an attorney.

Having legal representation at your side can ease the burden of making tough choices about your staff.


Before you fire an employee for misbehavior, performance difficulties, or any other type of poor behavior, you should seriously consider seeking some legal counsel, and this is especially important if you are concerned that the person could sue you. A lawyer will not only be able to tell you whether or not it will be lawful to fire the employee, but also what actions you may take to reduce the likelihood of being sued for your actions. Find out more on this page.

Classifications of staff members

Classification problems may have a significant impact on a substantial percentage of your employees and open the door to the possibility of greater liability.

Consult an attorney for advice before deciding whether a particular position qualifies as exempt as well as nonexempt, or before designating a group of people as independent contractors instead of employees, since this might have significant legal repercussions. Misclassification usually comes with a heavy price tag, which can include decades of unpaid overtime and fines for several employees.

Other choices 

You should seriously consider getting legal advice before making any employment decision that will have a significant impact on a big number of workers. Before you take any action, it is a good idea to run your plans past a lawyer first, particularly if you want to reduce the number of employees you have, modify your pension plan, or eliminate a benefit that your workers already get.

Your attorney will be able to inform you of any possible legal traps that you may be walking into and provide you with guidance on how to avoid them.


Get in touch with an attorney as soon as possible if a current or former worker sues you. Employment disputes are sometimes fraught with a great deal of difficulty. You must take specific activities right away to ensure that your rights are protected. You also have to move quickly to protect any evidence that could be used in court.

The time constraints for taking action are quite short, and the majority of courts demand that you submit a formal response to a lawsuit within only a few weeks of receiving notice of the complaint. As soon as you are made aware of a legal action being taken against you, you should start looking for a lawyer.

Statements of fault and claims 

There are situations in which a current or former worker starts a dispute resolution process that is less formal than a lawsuit. An employee, for instance, may submit a claim of administrative discrimination, retaliation, or harassment to the United States Equal Employment Opportunity Commission (EEOC) or a state agency that is analogous in function.

A former worker may also file an appeal against the rejection of unemployment benefits, which, in many jurisdictions, entitles the worker to the right to request a hearing on the matter. In circumstances like these, you should seek the advice of an attorney at the very least, if not actually employ one.

Even though some employers are able to and do handle these administrative functions on their own, the majority of employers could likely benefit from certain legal advice from employment lawyers on the legitimacy of the employee’s claim, how to start preparing a response to the charge, how and where to handle an agency inquiry, as well as how to present the evidence at the hearing.

If any of the following things happen to you, you should seriously consider getting legal representation:

The employee makes several significant allegations, any one of which might lead to a significant damage award being issued against you.

Other current or former workers have made similar complaints, either to the agency or inside the workplace. These charges have been made either directly or indirectly.

The worker has given indications that they want to bring legal action against the company or they have retained the services of an attorney. Click on this link

A few final words

If you have come to the conclusion that it could be in your best interest to consult with an attorney, the next step that you should do is to look for an experienced one. The key is to do enough research until you are confident enough with your decision to hire an employment lawyer. The sooner you start the process, the better.

Employment Lawyers


Hogan Lovells Secures Trial Win for Mercedes-Benz in Section 337 Patent Dispute

Washington, D.C., 12 September 2022 – Global law firm Hogan Lovells has secured a trial win for automaker Mercedes-Benz at the International Trade Commission (ITC), which denied claims alleging Section 337 violations surrounding the importation and sale of certain power inverters and converters, and vehicles containing the same. Mercedes was one of several companies named in the complaint, originally filed by Arigna Technology Limited of Ireland 21 May 2021. The ITC’s final decision, issued 12 August 2022, can be found here.

Hogan Lovells’ patent litigation team successfully secured a trial determination of non-infringement and patent invalidity in the matter, effectively terminating the investigation levied against our client.

“We are pleased to have secured this trial win for Mercedes in this matter, in which the ALJ unequivocally found no wrongdoing by our client,” said lead trial attorney for Mercedes, and Intellectual Property, Media and Technology (IPMT) Americas Practice Lead, Celine Jimenez Crowson, based in Washington, D.C. “The trial judge’s decision helps protect healthy lawful competition in the global supply chain, ensuring companies both domestically and internationally can continue to provide crucial manufacturing components and the vehicles that contain them to consumers in the coming months.”

In addition to Crowson, the Hogan Lovells team included IPMT partners Joe Raffetto and Anna Kurian Shaw (both Washington), former ITC judge Ted Essex (Washington), who serves as senior counsel in the firm’s IPMT practice, counsels Scott Hughes (Washington), and Helen Trac and Tej Singh (both San Francisco), senior associates Nick Rotz and Ryan Stephenson (Washington); and associates Eric Wang (New York) and Sally Zhang (San Francisco).

Hong Kong Companies Registry’s New Inspection Regime and Personal Data Protection (Phase 2)

In our previous article[1], we introduced the three phases of the new inspection regime under the Companies Ordinance of Hong Kong. Phase 1 was implemented on 23 August 2021. In this article, we will discuss Phase 2 which will come into effect on 24 October 2022.

New inspection regime

The Companies Register maintained by the Companies Registry contains personal information available for public inspection. Such personal information includes the usual residential addresses and full identification numbers of directors of companies, and full identification numbers of company secretaries and some other individuals such as liquidators and provisional liquidators (collectively, “Protected Information”).  Similar personal information is also required to be contained in the registers kept by companies.

To enhance protection of sensitive personal information, while keeping up the transparency and usefulness of the Companies Register, the new inspection regime is introduced in three phases.

Phase 1: From 23 August 2021, companies may replace usual residential addresses of directors with their correspondence addresses, and replace full identification numbers of directors and company secretaries with their partial identification numbers on their own registers for public inspection. This mainly concerns the Protected Information on the registers kept by companies.
Phase 2: From 24 October 2022, Protected Information on the Index of Directors on the Companies Register will be replaced with correspondence addresses and partial identification numbers for public inspection. Protected Information contained in documents filed for registration with the Companies Registry after such date will not be open to the public.
Phase 3: From 27 December 2023, data subjects could apply to the Companies Registry for protecting from public inspection their Protected Information contained in documents registered with the Companies Registry, and replace such information with their correspondence addresses and partial identification numbers.

Disclosure of Protected Information to Specified Persons

Notwithstanding commencement of Phase 2, the following designated types of persons (“Specified Persons”) can apply to the Companies Registry for access to Protected Information of directors and other persons of companies:

  • a data subject
  • a person who is authorized in writing by a data subject to obtain the information
  • a member of the company (e.g., a shareholder of a company limited by shares)
  • a liquidator
  • a trustee in bankruptcy
  • a public officer or public body
  • a person specified in the Schedule to the Companies (Residential Addresses and Identification Numbers) Regulation (Cap. 622N) as a scheduled person[2]
  • a solicitor or foreign lawyer who practices law in a Hong Kong law firm
  • a certified public accountant (practising)
  • a financial institution or designated non-financial businesses and professions

What do companies need to do?

In filing prescribed forms with the Companies Registry after 24 October 2022, a Hong Kong company still has to provide the Protected Information, but only the correspondence addresses and partial identification numbers will be available for public inspection. The company must also include the correspondence addresses of its natural person directors in its own register of directors.

For a local company and a non-Hong Kong company registered before 24 October 2022, the Companies Registry records the company’s principal place of business in Hong Kong as the correspondence address of its natural person directors. After the commencement of Phase 2, a director’s correspondence address will be updated if a separate form to report such address is filed with the Companies Registry.

Post office box numbers cannot be used as correspondence addresses of directors.

To facilitate the implementation of Phase 2, the Companies Registry has revised 26 specified forms for public use starting from 24 October 2022 in order to facilitate the reporting of correspondence addresses and identification numbers of officers and other relevant individuals. A “PI-sheet” is also added to each relevant form for reporting Protected Information which will not be made available for public inspection.