Being a business person in Hong Kong is an exciting venture – yet it also come together with a lot of compliance need. Trust or Company Service Providers (TCSPs) are commonly used by companies to operate their business in smooth operation and within the legal standards. Anti-Money laundering and counter-terrorist financing ordinance (AMLO) govern TCSPs in Hong Kong since 2018, and as such only licensed providers are able to offer this service.
Whether you are an entrepreneur or a business owner of an SME, when you know what the TCSP license is and why your business requires it, knowing how to save yourself in case of a risk, save time and improve your credibility.
What is a TCSP?
Trust or Company Service Provider is a professional firm that provide services in connection with:
- One of the first things required is the formation and registration of the company.
- Provision of nominee directors or shareholders.
- Corporate governance, compliance filing.
- Business address and registered offices.
- Administrative and secretarial.
Shortly, TCSPs ensure that businesses remain in check even as they are aimed at expansion.
What is a TCSP License in Hong Kong?
Hong Kong Companies Registry issue TCSP license. It oversees that the service providers are guided accordingly to ensure that they do not engage in illegal practices like money laundering and financing terrorism.
Key points about the license:
Who needs it? All companies that provide TCSP services need to have .license.
Requirements: Fit-and-proper test, and adherence to AML/CTF requirements, and appropriate internal controls.
Validity: The license is 3 years and renewable
The Reason Your Business needs a Licensed TCSP
- Compliance & Risk Reduction
Having a licensed TCSP helps to make sure that your company operates within the strict regulatory framework of Hong Kong. It reduces the possibility of the punishments associated with the non-compliance.
- Professional Support
Licensed TCSPs are knowledgeable to navigate through complicated filing, company restructuring and secretary responsibilities.
- Operational Efficiency
Outsourcing to a TCSP helps to save precious time particularly in firms that do not have compliance teams.
- Trust & Credibility
Banks, investors, and other partners usually use the check that whether the services provided by your providers are licensed TCSPs. An alliance with one helps in bolstering your business reputation.
Implications of Failing to use a licensed TCSP
Failure to observe TCSP regulations may result in:
- Criminal fines and sanctions in Hong Kong law.
- Bank account applications were denied on grounds of credibility.
- It will cause reputational harm to regulators and stakeholders.
To be successful in the long run, it is sure to be safer to do business with TCSP license.
Selection of the right TCSP in Hong Kong
TCSPs do not all have the same quality. Here’s what to look for:
Valid License: check that the TCSP was licensed at the Companies Registry.
Scope of Services: Find providers which provide company secretarial, HR, accounting services, payroll services.
Practical experience in the industry: See their experience with SMEs and foreign clients.
Client Support: Make sure that they give responsive personalized advice.
Hack: This is done by utilizing a one-stop provider such as FastLane HR since this service includes TCSP services along with HR and finance services.
Reasons Why FastLane HR should become your TCSP
FastLane HR is a licensed TCSP in Hong Kong with a reputation of being relied upon by both SMEs and multinational companies. Businesses prefer us because of the following reasons:
Skill: Years of experience in working with startups and existing firms.
Full-Suite Services: In addition to TCSP we offer HR outsourcing, payroll, accounting and cloud solutions.
Compliance Assurance: Be compliant without having any difficulties, knowing that your business is well run by specialists.
Credible Partner: Known to be trustworthy, transparent, and successful with the clients.
FastLane HR is not only a TCSP, but it is also a long-term corporate partner.
Conclusion
A TCSP license in Hong Kong is not merely a matter of regulatory compliance, but a basis of trust, compliance and growth. Starting a business or running an existing company, it is of great importance to deal with a licensed TCSP to prevent risks and remain competitive.
Need to achieve compliance and streamline the business process?
Contact FastLane HR and have our licensed professionals help you to succeed.