Starting a business in Hong Kong is a thrilling journey, and if you’ve recently set up a limited company, you might have received something known as the “Company Green Box.” But what exactly is this Green Box, and why is it important for new business owners? If you’re unsure, you’re not alone! Many new entrepreneurs don’t fully understand the purpose and contents of this package. In this guide, we’ll break down everything you need to know about the Company Green Box; what it includes, why it matters, and how it helps keep your business running smoothly.
What is a Green Box?
The Company Green Box is a sturdy, dark green box packed with essential items needed to operate your company legally in Hong Kong. Once your business registration and incorporation are complete, a company secretary or registration service will usually hand over this box. It holds important documents and seals that confirm your company’s official status, ensuring you’re ready to manage the daily operations of your business in compliance with Hong Kong laws.
While much of the business world has moved online, the Green Box still carries significant value. It symbolizes the formal establishment of your company and contains items that are often necessary when setting up a bank account, signing contracts, and handling official matters. Think of it as your business’s “starter kit” for legal and financial interactions.
What’s Inside the Green Box?
Typically, a company’s Green Box contains the following essential documents and seals:
- Company Signature Chop: Also known as the financial chop or rectangular chop, it is primarily used for signing daily business documents.
- Company Round Chop: Used for document modifications and acknowledgments of receipt, but it is not suitable for contract confirmations.
- Common Seal (Company Seal): Also known as the common seal, it is mainly used for signing legal contracts or share certificates.
- Articles of Association: Contains the rules and regulations for the company’s internal management and operations.
- Share Certificates: A statutory document that records the transfer and changes in shareholder shares.
- Statutory Register: Records information about directors, shareholders, and the company secretary, as well as minutes from board and shareholder meetings.
- Business Registration Certificate / Certificate of Incorporation: Documents that certify the company’s establishment and its legal status to operate.
These documents and seals are not only symbols of the company’s legal status but also play crucial roles in daily operations and fulfilling statutory obligations. The following sections will provide a detailed explanation of the purpose of each item in the Green Box.
How Each Document in the Green Box Helps Your Business
Let’s take a closer look at how each document and seal in the Green Box is used:
- Company Signature Chop
The Signature Chop is your go-to stamp for day-to-day business needs. It’s often blue or purple, rectangular, and has space for an authorized signature, giving it legal weight. You’ll use it for contracts, invoices, and many other internal documents. - Round Chop
The Round Chop, a small stamp that typically shows your company’s name, is used to make minor corrections on documents. It’s perfect for acknowledging routine changes and adjustments, making it a useful tool for daily operations. - Common Seal
This metal seal is used for more significant documents, like share certificates and key contracts. While it’s no longer legally required, having a Common Seal can still be useful for formal documents and partnerships. - Articles of Association
The Articles of Association lays out the internal structure of your company, including rules for management and shareholder responsibilities. It may be required when opening a corporate bank account or making structural changes within the company. - Share Certificates
The Share Ledger keeps a record of shareholder changes, giving your company a clear, traceable record of ownership. This is key for ensuring transparency and legal protection during share transactions. - Statutory Book
This register contains official records about directors, shareholders, and company secretaries, including board and shareholder meeting minutes. It’s crucial for regulatory compliance and serves as an official reference during audits or regulatory reviews. - Business Registration Certificate / Certificate of Incorporation
These certificates serve as legal proof of your company’s establishment. The Business Registration Certificate must be renewed annually and is required for tax filings, bank account setup, and audit preparation.
What Impact Does the Amendment in Section 124(1) Have on the Importance of the Green Box?
The 2014 revision of the Companies Ordinance under Section 124(1) specifies that Hong Kong companies can choose whether or not to use a common seal (corporate seal). This amendment has simplified company establishment procedures, reducing the mandatory need for a physical Green Box and common seal. Nowadays, many newly established companies opt for electronic document storage. However, the documents and seals within the Green Box continue to offer convenience for tasks such as opening bank accounts, applying for loans, and signing important documents—especially in cases where physical stamps are still required.
How Can FastLane Assist You with Applying for a Company Green Box?
FastLane company secretary services provides a smooth, efficient way to get your Company Green Box, along with expert support on the latest regulations for Hong Kong businesses. Our team is also available for accounting, audit, and tax services to support your business’s growth and ensure compliance with local laws.