Transfer of Shares of a Hong Kong Private Company

1. Our Fees for Handling Share Transfer

Our fees for handling a Share Transfer are USD260.

2. Our Services

The fees cover the following services:
(1) Review Articles of Memorandum and Association and Register of Members
(2) Prepare of Minutes of Directors’ Meeting and Share Transfer Instrument and Bought and Sold Note
(3) Arrange to have the Transfer Instrument and Bought and Sold Note executed and stamped by the Stamp Duty Office and payment of Stamp Duty
(4) Issue new share certificate
(5) Update Register of Members
(6) Delivery of new share certificate and stamped instrument of transfer and bought and sold note.

Please note delivery charge and stamp duty are not included in the fees stated above.

3. Documents and information needed to be provided by clients

In order to enable us to prepare the docuemnts for transfer of shares, we need to have the following information and documents:

(1) A copy of the Memorandum and Articles of Association of the subject company
(2) The latest Register of Members
(3) The amount of shares to be transfered and the value of consideration
(4) The name of the seller (Transferor)
(5) A copy of the passport or identity card and residential address of the new shareholder (transferee)
(6) A copy of the latest audited financial statements (and/or latest management accounts)

4. How long does it take to process a share transfer?

The transfer of share could be completed in one day. The process works like this:

We prepare the Instrument of Transfer and Bought and Sold Note, arrange the transferor and transferee to sign the transfer documents, deliver them together with teh supporting documents to the Stamp Duty Office for execution and payment of stamp duty. Then, we prepare new share certificates and update the Register of Members.

5. Calculation fo Stamp Duty

The amount of stamp duty to be paid is calcualted as following:

(Amount of Consideration (or net assets of the subject company x % of interest to be transferred) x 0.1%) x 2 + HKD5

For example, if the subject company has a net assets of HKD10,000, and the percentage of interest to be transfered is 50%, then the amount of stamp duty paybale would be:

(HKD10,000 x 50% x 0.1%) x 2 + HKD5 = HKD105

See also: Fees and Procedures for Allotment of Shares

For further information or assistance, please contact our offices or send email to enquiries@bycpa.com.