Holding Annual General Meeting during COVID-19

What do you need to be aware of  when Holding Annual General Meeting during COVID-19. Annual General Meeting (AGM) provides one of the few opportunities shareholders have to question the board, engage directly with management, and hear the views of other shareholders.

With the outbreak of the COVID-19 is causing companies to well plan ahead with their arrangements for 2020 AGMs in light of group gatherings and travel restrictions.  If AGM is not held at a public space, means people can access from time to time, whether by payment or not. Then, it does not break the regulations of group gatherings. 

Any Exemption?

Under the Companies Ordinance (Cap. 622) (“CO”), there are certain resolutions to be made within a specified period. The exemption under Item 11 of Schedule 1 of the Regulation (“Item 11”) may also apply to such meeting.  Whether other types of general meetings fall within the exemption will have to be determined on a case by case basis with reference to any specific requirements under the relevant Ordinance or other regulatory instruments governing the holding of such meeting.

Possibility of deferring or adjourning AGM

As public health and safety is of paramount importance, all persons have a part to play in combating the transmission and spread of COVID-19. Companies should consider the possibility of deferring or adjourning their general meetings until after the expiration of the Specified Period taking into account whether –

  • the timing of holding the general meeting is subject to any statutory requirement;
  • any such requirement is capable of extension, waiver or otherwise; and
  • any business to be dealt with at the meeting is of such urgency and importance that necessitates the holding of the meeting.

Measures in the conduct of Annual General Meeting

(A) Hybrid meetings

The CO facilitates a hybrid meeting, namely, a physical meeting together with a form of electronic participation using tele-conferencing, video-conferencing or other electronic means.

By virtue of section 584, a company is expressly permitted to hold Annual General Meeting at 2 or more places by using technology. This enables members who are not at the same place to listen, speak and vote, subject to the provisions of the company’s articles of association (“articles”). In this connection, companies may review their articles to see if a hybrid general meeting is permissible.

To reduce the need for physical attendance, companies can use technology and digital tools to hold hybrid general meetings.

Companies may consider making necessary arrangements to segregate attendees across different venues. For example, company could provide video-links in separate meeting rooms. Then the attendee at each venue to participate.

Pursuant to section 576 of the CO, if a general meeting is to hold at 2 or more places.  The notice of meeting must specified the principal place of the meeting and the other place(s) of the meeting.

(B) Pre-registration and proxy voting

In order to better manage the number of members that may attend the meeting, companies may consider requesting members to pre-register if they (or their proxies) wish to attend the meeting in person. Companies may also encourage members to vote by proxy, or, if practicable, by electronic modes of voting, and to submit their questions to management in writing before the meeting.

Under section 585(3) of the CO, where a company has more than 1 member, subject to the provisions of the company’s articles, 2 members present in person or by proxy is a quorum of a general meeting of the company. The right to appoint a proxy and the procedures relating to the appointment of proxies stipulated in sections 596 to 608 of the CO (Subdivision 9 of Division 1 of Part 12).

(C) Restriction on the number of attendees

In the interest of public health, companies should restrict the physical attendance of attendees of a general meeting venue.  Also companies need to implement the precautionary measures set out to achieve social distancing.

(D) Other precautionary measures

Companies should implement appropriate precautionary measures at the meeting venue.  For example –

  • arranging for body temperature check for all persons entering the meeting venue. Not allow the persons with high body temperature to enter the venue;
  • requiring all persons entering the meeting venue to wear a face mask;
  • providing hand sanitizers for use by persons entering the meeting venue;
  • providing sanitizing mats at the entrance of the meeting venue; and
  • arranging for appropriate physical distancing between seats.

Companies should adopted the meeting arrangement and precautionary measure as far as practicable. Then update their members about the practices.

For further information, please contact us.

You may want to read: http://centreo.hk/business-registration-ordinance-company/

Hong Kong Limited Company Deregistration Process

Points to Keep in Mind

Even though it might seem like something sensible to do, unless it is completely necessary. Otherwise, we have to think deep before the final decision. Before we want to move ahead and de-register the company in Hong Kong. There are other points we have to consider: 

  • It is the obligation for the business to file any outstanding Annual Returns and follow its duties as per the Companies Ordinance. Until the firm dissolved, prior to submitting the deregistration application.
  • To check the Gazette Notice for your company’s deregistration public records.
  • In case you change your address, you need to inform the Companies Registry through a letter about it to make the future communications easier.
  • If the company’s registered changed office address, or the director address. You would need to fill the necessary form for letting the Government know about the change. 

 If you are eligible and feel that you meet the requirements and still want to de-register the Hong Kong company. You can go ahead with the steps. As mentioned above, there are two steps to deregister a company and they are:

Process with Inland Revenue Department – Step 1

In this process, the company would need to get the notice that has been written by the Inland Revenue Department. For this, you would need to fill the Form IR1263 and submit it along with the fee to the Inland Revenue’s Commissioner. 

How do I deal with CR (Company Registry) – Step 2

After the company has received the “Notice of No Objection” from the IRD. You need to fill in the form along with the application for the deregistration and send it to the Registrar of Companies. The structure of the processes are as follows:

  • Company Deregistration (CR & IRD)
  • Company resolution of directors to dissolve the company
  • Appointment of proxy (de-registrator)

Hong Kong Limited Company Deregistration process with the Company Registry

Once the company has received the “Notice of No Objection” letter from the IRD. The company can proceed to de-register the company in the company Gazette. Along with this, the applicant has to submit the following to the Companies Registry: 

  • A properly completed form NDR1.
  • The original copy of the “No Objection” Notice from the Commissioner of Inland Revenue.
  • Any further information or documents that the Companies Registry of Hong Kong may request in connection with the application to deregister the company.

De-registration after letter of “Notice of No Objection”

With the documents in place, the company can submit these to the CR. The final steps of the de-registration would take place, as the following. 

  • If the Companies Registry sees that all the documentation is in right order. Company Registry will move forward with the process and issue the Letter of Approval within five working days.
  • The CR will then publish a notice of the intended deregistration in the Gazette of Hong Kong. When there is not objection from the public within three months from publishing of the announcement,  It will issue a final notice in the Gazette. Along with this, the applicant or nominated person would also be duly notified of the same.
  • Upon the announcement of the final notice, the firm will be dissolved.
  • The entire procedure will be executed within five months.
  • Upon dissolution of the company, all the company’s assets that also includes the balance of the credits in the bank account of the business would be deemed to be bona vacantia and would be held by the Hong Kong Government.
  • It is vital to notify the Business Registration Office of the Inland Revenue Department within one month of the date of discontinuance of business, to apply for a cancellation of Business Registration.
  • Until the company has been deregistered, it is still required to adhere to compliances that include the notification of situation of registered office and the filing of annual returns.

For further information, please contact us.

You may want to read: http://centreo.hk/closing-business-hong-kong/

香港公司注销流程

要牢记的要点
即使这似乎是明智之举,除非完全有必要。否则,在最终决定之前,我们必须深思熟虑。在我们想继续前进并在香港取消公司注册之前,我们还需要考虑其他几点:

企业有义务提交任何未完成的年报,并根据《公司条例》履行其职责。在公司解散之前,提交注销申请。
查看宪报公告,了解贵公司的撤销注册公共记录。
如果您更改了地址,您需要通过信函通知公司注册处,以便日后沟通。
如果公司注册变更办公地址,或董事地址。您需要填写必要的表格,让政府知道变更信息。
 
如果您符合资格并且满足要求,还是想取消注册香港公司,您可以继续执行这些步骤。如上所述,注销公司有两个步骤,它们是:

与税务局的流程 – 第 1 步
在这个过程中,公司需要得到税务局已写的通知。您需要填写 IR1263 表格并将其与费用一起提交给税务局局长。

处理 CR(公司注册) – 第 2 步
公司收到税务局的“无异议通知”后,您需要填写该表格以及注销登记申请书,并将其发送给公司注册处。流程的结构如下:

公司注销(CR & IRD)
公司董事解散公司的决议
委任代理人(注销人)

香港公司在公司注册处的注销流程
一旦公司收到税务局的“无异议通知”信函。公司可以继续在公司公报上注销公司。与此同时,申请人必须向公司注册处提交以下资料:

填写正确的表格 NDR1。
税务局发出的“无异议”通知原件。
香港公司注册处可能要求提供申请撤销公司的任何其他资料或文件

收到“无异议通知书”后注销登记
文件到位后,公司可以将这些文件提交给 CR。注销登记的最后步骤将如下进行。

如果公司注册处认为所有文档都是正确的,公司注册处将推进该流程并在五个工作日内发出批准函。
CR 将在香港宪报刊登拟注销登记的公告。公告发布之日起三个月内未有公众反对的,将在宪报刊登最终公告。同时,申请人或被提名人也将收到同样的通知。
最终通知一经公布,公司即告解散。
整个程序将在五个月内执行。
公司解散后,公司的所有资产,包括业务银行账户中的贷方余额,将被视为无主财产,并由香港政府持有。
必须在停业之日起一个月内通知税务局商业登记署,申请取消商业登记。
在公司被注销之前,仍需遵守包括注册办事处情况通知和年度申报表备案在内的合法规定。

如想了解更多信息,请与我们联系。
你可能想要了解:http :  //centreo.hk/closure-business-hong-kong/

抗疫基金远程商务(D-BIZ)计划

新型冠状病毒疫情给香港带来了一个特殊的挑战。创新及科技局局长杨伟文宣布,创新及科技局将拨款5亿元港币,推出远程商务(D-Biz)计划抗疫基金。为支持本地企业在疫情期间通过采用科技解决方案继续开展业务和服务。 
概述和目标
远程办公或服务成为疫情背景下的新趋势。创新科技署 (ITC) 推出了 D-Biz 计划,以通过采用科技解决方案来支持企业。香港生产力促进局是该计划的重要之处
资助金额
每个资讯科技方案连同相关培新开支的资助最高为100,000元港币 (相关培训费用的资金上限为该科技解决方案的 10%),申请获得批准后,企业可获发放30%的资助金额,每家企业可获最多 300,000 元港币的资助。

资助范围
为方便企业物色合适的资讯科技解决方案,我们会提供资讯科技解决方案及资讯科技服务供应商名单供其参考,加快处理时间,让企业尽快受惠。
IT 解决方案列表将涵盖 13 类支持远程业务的 IT 解决方案。
 线上和数码化远程业务融资范围示例
网上营商
网上接单和送餐、智能自助服务系统(如网上订餐送餐解决方案、智能储物柜、智能售货机、智能售货机等)
网上客户服务和推广(例如网上票务、网上预订系统、客户管理系统、虚拟服务交付、网上医疗咨询等)
客户数码体验提升(例如聊天机械人、人工智能、扩增实景/虚拟实景、客户分析等)
网络营销
支付网关/流动销售系统
云端/网上的财务管理系统(如电子发票系统)
网上或云端的人力资源管理系统(如电子工资系统、员工自助服务门户、人才管理、网上培训系统、网上和云端定位的考勤/打卡监控和报告、员工休假管理、员工报销处理系统等。 )
远程文档管理和云存储(如共享驱动器)和远程访问服务(如远程桌面控制、虚拟专用网络、虚拟桌面基础设施)
虚拟会议和会议工具
虚拟团队管理与沟通(如协作工具、即时通讯平台等)
网络安全解决方案(如防火墙、防病毒/恶意软件解决方案等)
其他线上/云端的业务支持系统(如企业资源规划、电子申领表和审批流程、机械人流程自动化等)
资格
所有私营企业(上市公司、法定机构和政府资助的非政府组织除外)均可申请。符合条件的企业必须持有有效的商业登记证,在2020年1月1日之前营业,并在申请时在相关行业有实质性经营。
申请时间
本计划于2020年5月4日至10月31日开放申请,为期6个月。
想想看,每个人都对 D-Biz 计划感兴趣。至于申请和评估程序,我们还需要等待官方公告。
如需了解更多信息,请与我们联系。
 你可能想要了解:http://centreo.hk/hk137-5-billion-financial-relief-hong-kong-smes/

新冠疫情期间的公司年度成员大会

在新冠疫情期间举行年度股东大会时需要注意什么。年度股东大会 (AGM) 是公司运营的一大重要会议,股东能够借此机会向董事会提出建议,参与公司决策,还能听取其他股东的意见。
随着新冠疫情的爆发,鉴于团体聚会和旅行限制,公司不得不提前做好 2020 年年度股东大会的安排。  只要股东大会不在公共场所举行,即不在公众人士或部分公众人士可以或获准不时在缴费或不缴费下进入的地方下进行,就不会违反这一项规定。 
有豁免吗?
根据《公司条例》(第 622 章)(“公司条例”),某些决议案须在指定期限内作出。该条例附表1第11项(“第11项”)下的豁免也可适用于此类会议。其他类型的股东大会是否属于豁免范围,须按个别情况参考相关条例或其他规管举行该等股东大会的监管文书的任何特定规定而定。
推迟或休会年度股东大会的可能性
由于公共卫生和安全至关重要,全民皆有责任防止新冠病毒的传播,公司应考虑可否将其成员大会押后或延期至指明期间届满之后举行的:
召开股东大会的时间是否受法例规定所约束;
有关时间的约束,能否做出顺延、豁免或以其他方式免除;
会议上须处理的事务是否如此紧急及重要,以致必须召开有关会议。
召开年度股东大会可采取的措施
(A) 混合会议
混合会议是指实体会议,并同时籍采用电话会议、视像会议或其他电子方式,让成员以电子刑事参与该会议。
根据第 584 条明确允许公司使用该公司出身不同地方的股东能够在股东大会上聆听、发言及表决的任何科技,在 2 个或更多地点举行年度股东大会。公司可以检视其章程细则,以确定其章程是否容许混合式成员大会的举行。
公司可考虑采取这种会议形式减低各股东亲身出席会议的需要,如会议在不同场地举行,公司可以提供视像连接,令每个场地的与会者可同时参与会议。
根据《公司条例》第 576 条,如果股东大会在 2 个或更多地点举行。公司须载股东大会通知内指明举行该股东大会的主要会场及举行股东大会的其他会场。
(B) 预注册和代理投票
为更好地管理可能出席会议的成员人数,公司可考虑要求成员(或其代理人)希望亲自出席会议的成员进行预先登记。公司还可以鼓励成员通过代理投票,或者在可行的情况下通过电子投票方式,并在会议前以书面形式向管理层提交问题。
根据《公司条例》第 585(3) 条,若公司有超过 1 名成员,则根据公司章程的规定,亲自或委托代理人出席的 2 名成员为公司股东大会的法定人数。《公司条例》第 596 至 608 条(第 12 部分第 1 分部第 9 分部)规定的委任代理人的权利以及与委任代理人有关的程序。
(C) 参加人数限制
为了公众健康,公司应限制出席人员出席大会场地。公司还需要实施为实现社会疏远而制定的预防措施。
(D) 其他预防措施
公司应在会议地点采取适当的预防措施。例如 –
安排所有进入会场的人员进行体温检测。禁止体温高的人员进入场地;
要求所有进入会场的人员佩戴口罩;
提供洗手液供进入会场的人士使用;
在会场入口处提供消毒垫;
安排座位之间有适当的距离。
公司应尽可能采取会议安排和预防措施。然后更新他们的成员关于实践的信息。
如想了解更多信息,请联系我们。
你可能想要了解:http :  //centreo.hk/business-registration-ordinance-company/

香港BUD基金

BUD 基金代表“发展品牌、升级转型及拓展国内销售市场的专项基金”。BUD基金旨在帮助港企把握国家十二五规划带来的机遇。香港特别行政区政府于 2012 年 6 月设立了 10 亿元的 BUD 基金,以帮助中小企业。让香港初创企业进一步把握经济机遇,提升竞争力。2018-19 年度预算案提议扩大 BUD 基金的地域范围,推出“东盟计划”,及提高资助个别企业推行拓展中国内地市场(“内地计划”)的累积资助。项目不仅包括香港、中国和澳门,还包括东南亚国家联盟(东盟)市场。
目标 
为个别香港企业在自贸区市场和中国大陆市场开展品牌发展、业务升级和重组以及促进销售提供资金支持。从而提升竞争力,促进自贸区市场和中国大陆市场的业务发展。
最新消息
进一步完善BUD基金将于2020年4月推出。BUD基金是指每家企业在内地和其他与香港签署自由贸易协定(FTA)的经济体开展项目的个人上限(累计资助2美元)百万)将被删除。使企业可灵活运用高达400万元的总资金,在内地或与香港签署自贸协定的其他经济体承接项目。此外,参与政府相关机构或有良好往绩的知名展览主办机构举办的虚拟展览的企业,将有资格获得BUD基金的资助。
资格
根据《商业登记条例》(第310章)在香港注册的所有非上市企业,在香港进行实质性业务运作,不论他们是否属于制造业或服务业,亦不论他们是否已在自由贸易区市场及中国内地经营业务。
资助额
资金将按配比提供,政府将承担最多50%的总核准项目费用,而企业必须以不低于项目总成本50%的现金出资。在BUD基金任期内,每个企业最多可获得12个批准项目的资金,而“内地计划”及“自由贸易区计划”的累计资助总额为400万元。
项目工期
每个资助项目必须在 24 个月内完成。
资助范围
凡是通过品牌建设、经营升级重组、促进销售等方式,协助香港个体企业开拓中国内地市场和自贸区市场的项目均符合资格。
 
如想了解更多信息,请与我们联系。
 
您可能想要了解: 技术券计划 (TVP)

HK$137.5 billion Financial Relief Package offered for Hong Kong SMEs

Government announced a HK$137.5 billion (US$18 billion) financial relief package on 8th April, in addition to save ailing businesses and their workers. The package is divided into 4 parts:

  1. Job retention;
  2. Job creation;
  3. Sector-specific aids;
  4. Rental concessions, fee waivers, loans

 1. Financial Relief on Job retention (HK$80 billion)

      Employment Support Scheme

  • First and foremost, Government to pay 1.5 million workers 50% of their wages, capped at HK$9,000 a month for 6 months.
  • The money will be distributed through employers. Above all recipients must have a Mandatory Provident Fund (MPF) pension scheme account in order to qualify.
  • Secondly, businesses can expect to apply for financial help no later by June for the first payment.
  • Thirdly, self-employed people will get a one-off subsidy of HK$7,500

 2. Financial Relief on Job creation

  • With this in mind of unemployment rate increase in the past 3 months, the Hong Kong Government to create 30,000 job in the coming 2 years. The expenditure is HK$6 billion. To employ 10,000 civil servants and 5,000 internships.
  • Hence, a HK$800 million scheme to let workers learn new skills or let businesses apply more technology. For example, Visual Aid facilities in Lew Firm.

3. Sector-specific aids (HK$21 billion)

Education

One-off grants to:

  • Tutorial schools: HK$40,000.
  • Tuck shops, canteens and lunchbox providers in schools: HK$10,000-HK$80,000.
  • School bus drivers and bus nannies: HK$10,000
  • Sport coaches, instructors and operators of interest classes: HK$7,500.

 

Construction, finance, cleaning and farming

  • Construction workers: HK$7,500.
  • Contractors and companies: HK$20,000.
  • HK stock exchange participants: HK$50,000.
  • Security and Futures Commission’s licensed individual: HK$20,000
  • Refuse collectors: HK$8,000.
  • Farmers and fishermen: HK$10,000

 

Transport and aviation

  • Taxi drivers and red minibus drivers to received a monthly subsidy of HK$6,000 for 6 months.
  • Tax and red minibus owners: HK$30,000.
  • Airport Authority to buy 500,000 air tickers for HK$2 billion.
  • Local airlines to receive HK$200,000 to HK$1 million for each aircraft.
  • 40 aviation support services operators: HK$1 million to HK$3 million.

 

Tourism

  • Travel Agents: HK$20,000 to HK$200,000; each staff: HK$5,000 for 6 months.
  • Hotels: HK$300,000 to HK$400,000.
  • Coach drivers: HK$10,000

 

Creative industries

  • Cinemas to get HK$100,000 per screen, with a cap of HK$3 million for each company.
  • Coming Hong Kong Book Fair participants to get HK$100,000.
  • 12 selected NGOs operating businesses in public heritage building to get HK$3 million.

 

Catering

  • In most cases, catering outlets to get HK$250,000 to HK$2.2 million, as a result, no less than 80% to be used to cover workers’ wages. However, catering outlets cannot apply for Employment Support Scheme in the same time.
  • As a rule, outlets also get HK$50,000 for close-down order.

 

Subsidies for establishments order to close

  • Also, amusement game centres, bathhouses, gyms, bowling alleys, skating rinks, mahjong parlours, clubhouse operators to receive HK$100,000 each.
  • HK$30,000 to HK$100,000 for beauty salons and massage parlours, capped at HK$3 million for each chain.

 

4. Rental concessions, fee waivers, loans

  • MTR cut fares by 20% for 6 months from 1 July 2020  
  • To temporarily relax the monthly public transport expense threshold of the Public Transport Fare Subsidy Scheme from $400 to $200 for a time-limited period of 6 months from 1 July 2020
  • The Education Bureau (EDB) will invite all borrowing institutions and the international schools to accept the two-year loan repayment holiday.
  • Student Financial Assistance Agency (WFSFAA) will issue notification letters to student loan repayers concerned to inform them of the two-year loan repayment holiday.
  • Additional extension of 3 months on deadline for payment of tax for year of assessment 2018/19.
  • Nevertheless, to raise maximum loan amount under SME Financing Guarantee.
  • Along with rental allowance increase for tenants of government premises from 50% to 75% for 6 months.
  • Waive registration fees for 125,000 health care professionals for 3 years.
  • Further extend the 75% waiver of water and sewage charges payable by non-domestic accounts for till November 2020,

 

5. Other Initiatives

All together, Monetary Authority to adjust regulations  release a total lending capacity of HK$1 trillion for banks. On the whole, Insurance Authority to facilitate major insurance companies in offering a grace period for premium payments for clients. Apart from this, the Government departments will extend the deadline for project completion in accordance with contract mechanism and/or relax the payment schedules of Government works and non-works contracts. Last but not least, to extend the Building Covenant (BC) period for development projects by up to six months in land leases

For further information, please contact us.

You may want to read: http://centreo.hk/government-measures-support-smes/

Hong Kong BUD Fund

The BUD Fund stands for “Dedicated Fund on Branding, Upgrading and Domestics Sales”. BUD fund is to help Hong Kong enterprises capture the opportunities arising from the National 12th Five-Year Plan. The Hong Kong Special Administrative Region Government set up the BUD Fund of $1 billion in June 2012. To help SMEs. Allowing Hong Kong start-ups, further grasp economic opportunities and boost their competitiveness. The 2018-19 Budget proposed to extend the geographical scope of the BUD Fund. Not only Hong Kong, China and Macau, but also including the Association of Southeast Asian Nations (ASEAN) markets by launching the “ASEAN Programme”. Moreover to increase the cumulative funding ceiling per enterprise for projects involving the Mainland China Market (the “Mainland Programme”).

Objective 

To provide funding support to individual Hong Kong enterprises in undertaking projects to develop brands, upgrade and restructure their business operations and promote sales in the FTA markets and Mainland China market. So as to enhance the competitiveness and facilitate the business development in the FTA markets and Mainland China market.

What’s New

Further enhancements to the BUD Fund will be rolled out within April 2020. For the BUD Fund, the individual ceilings for each enterprise to undertake projects in the Mainland and other economies with which Hong Kong has signed Free Trade Agreements (FTAs) (cumulative funding $2 million each) will be removed. So that enterprises can flexibly make use of the total funding of up to $4 million to undertake projects in the Mainland or other economies which have signed FTAs with Hong Kong. Besides, enterprises participating in virtual exhibitions organized by Government-related organisations or reputable exhibition organisers with good track record will be eligible for funding support under BUD Fund.

Eligibility

All non-listed enterprises registered in Hong Kong under the Business Registration Ordinance (Chapter 310) with substantive business operations in Hong Kong. Irrespective of whether they belong to the manufacturing or service sector or whether they already have any business operations in the FTA markets and the Mainland China.

Funding Amount

Funding will be provided on a matching basis. The Government will cover a maximum of 50% of the total approved project cost. While the enterprise has to contribute no less than 50% of the total project cost in cash. During the tenure of the BUD Fund, each enterprise may obtain funding for a maximum of 12 approved projects. And the total cumulative funding amount is $4,000,000 under the “Mainland Programme” and the “FTA Programme”.

Project Duration

Each funded project must be complete within 24 months.

Scope of Funding

Any projects that assist individual Hong Kong enterprises in exploring and developing the Mainland China markets and FTA markets through developing brands, upgrading and restructuring operations and promoting sales are eligible.

 

For further information, please contact us.

 

You may want to read: WHAT IS TECHNOLOGY VOUCHER PROGRAMME (TVP)?

SPECIAL 100% LOAN GUARANTEED SCHEME FAQ

1/ What is Special 100% Loan Guaranteed Scheme?

The Special 100% Loan Guaranteed Scheme is a loan guarantee scheme launched by the Government aims to help SMEs to secure loans from participating lending institutions. Thereby, help minimise enterprise shutting down and layoffs during the pandemic. 

 

2/ Who are eligible to apply for the Special 100% Loan Guaranteed Scheme?

Local SMEs in all sectors including but not limited to retail outlets, travel, Eligible Enterprises agents, restaurants, cinemas, karaoke establishments and transport, operators, etc. with valid Business Registration Certificate

 

3/ What is the Application Requirements?

  • Business registration and operation in Hong Kong for at least 3 months as at the end of December 2019.
  • Suffered at least a 30% decline in sales turnover in any month since February 2020 compared with the monthly average of any quarter in 2019.

 

4/ Whether the Government or the lending institutions lend to customers?

All approved loans were guaranteed by the Government and lent by the lending institutions to customers directly.

 

5/ How to calculate the maximum facility loan amount?
  • Up to the total amount of employee wages and rents for six months; Amount or HKD4 million, whichever is lower. Or
  • If an enterprise does not have either employee(s) or rented office(s), proxy is made to 50% of the highest monthly net income in 2019 multiplied by 6.

 

6/ Is there any guarantee fee or handling fee?

There is NO guarantee fee; but it may involve handling fee from lending institutions.

 

7/ What is the loan interest rate?

Annual interest rate at 2.5% below the Prime Lending Rate. (i.e. the current effective interest rate at 2.75% p.a.)

 

8/ How is the Maximum Repayment Period?

36 months (with an optional principal repayment holiday for the first Repayment Period 12 months)

 

9/ What is the application period?

12 months starting from the scheme launch

 

For further information, please contact us.

 

You may want to read:  http://centreo.hk/special-100-loan-guarantee/