Q：
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What should I do if I want to transfer my Hong Kong company shares to other?
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A：
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To transfer the shares of a Hong Kong Company to other, it requires to submit a completed Instrument of Transfer with Bought and Sold Note to the Stamp Duty Office under Hong Kong Inland Revenue Department for stamping.
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Q：
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Other than Instrument of Transfer and Bought and Sold Note, are there any supporting documents required to be submitted?
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A：
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Yes. It is required to submit the following along with the share transfer document: -
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Company’s account, if commenced business;
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Share transfer agreement, if it has been executed; and
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List of Hong Kong Landed Properties, if any.
If all or any the above 1to 3 does not exist, a declaration letter must be provided.
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Q：
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Is there any tax required to be paid for share transfer of Hong Kong company?
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A：
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Yes. According to the Stamp Duty Ordinance (Cap 117), it requires to pay a stamp duty to the Hong Kong Government for every share transfer of Hong Kong company.
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Q：
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How to calculate the stamp duty of the share transfer?
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A：
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The amount of stamp duty to be paid is calculated as following:
(Amount of Consideration (or net assets of the subject company x % of interest to be transferred which is higher) x 0.1%) x 2 + HKD5
For example, if the company has net assets of HKD10,000. The sole shareholder would like to transfer 50% shares to another and the consideration is HKD1,000. Base on the abovesaid condition, the net assets value would be counted in this case (Net assets value > Consideration）. Then the amount of stamp duty payable by transferor and transferee would be:
(HKD10,000 x 50% x 0.1%) x 2 + HKD5 = HKD15
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Q：
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Is there any deadline or penalty for the stamp duty?
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A：
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Yes. The share transfer document must be submitted on the same day as the date on the share transfer document. Otherwise, in addition to the original stamp duty, there will be a late penalty from 2 to 10 times of the original amount (depends on the time of late submission).
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Q：
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What should I do if the share transfer document is not being stamped?
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A：
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The share transfer will not treat as completed if the share transfer documents are not stamped. You should arrange the share transfer documents to be stamped as soon as possible.
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Q：
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When will the share transfer be completed?
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A：
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The share transfer will be completed after the share transfer documents is stamped by the Hong Kong Inland Revenue Department and the board of director of the company approved the share transfer and enter the transfer in the register of members.
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Q：
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Do the share transfer documents need to be submitted to the Hong Kong Companies Registry?
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A：
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No. The share transfer documents need not be submitted to the Hong Kong Companies Registry. It only requires reporting the change of shareholding in the coming Annual Return of the company.
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FAQ
