Certificate of Good Standing

Key Takeaways

• A Certificate of Good Standing proves your company is legally registered and authorized to operate in Hong Kong.
• The Certificate is often required by external parties as formal proof of legitimacy.
• Certificate of Good Standing is also referred to as the Certificate of Continuing Registration in HK.
• You can get the Certificate of Continuing Registration in 2–5 business days from the Companies Registry.

What is a Certificate of Good Standing?

In Hong Kong, a certificate of good standing is more often referred to as the Certificate of Continuing Registration. It is important to note that while this certificate proves that the company is in good standing with local authorities, it does not guarantee financial stability or successful business performance.

A certificate of good standing is a legal certificate issued by the Hong Kong government, proving that the company is registered and is allowed to conduct business in Hong Kong. “Good standing” means that the company has an active status and the company does not owe the Government any penalty or business license fee. 

Within the Certificate of Continuing Registration, the Registrar provides the following declaration:

“(Company Name) was incorporated in Hong Kong under the Companies Ordinance on (Date), and as at the date of this certificate, the company remains on the Register of Companies maintained by the Hong Kong Company Registry.”

When do you need a Certificate of Good Standing?

A Certificate of Good Standing is required when an external party requests formal proof that your company is legitimate and legally registered. Common examples of these parties include:

• Foreign Governments and Authorities: Regulatory bodies may request it when your company is expanding into international markets or seeking a license in a foreign jurisdiction.

• Individuals and Businesses: Customers or partners with whom your company is establishing a professional relationship.

• Financial Institutions: Banks often require this document when you are opening a corporate account or applying for credit facilities and loans.

How do I apply for a Certificate of Good Standing?

If you wish to request a Certificate of Continuing Registration (Certificate of Good Standing) for your own company or for a business partner, such as a buyer or supplier, you can order one through the Hong Kong Companies Registry. The processing time typically takes approximately 2 to 5 business days.

If you’re not based in Hong Kong, or prefer to avoid the paperwork and errands, simply send us a message, we’ll handle the entire process on your behalf.

Are there an alternative to a Certificate of Good Standing?

For transactions valued in the millions or billions, you may consider using an escrow service. In an escrow arrangement, a neutral third party receives and remits funds on behalf of the buyer and the seller. The buyer deposits the funds with the third party in advance, and the funds are only released to the seller once the specific contract conditions are fulfilled or the goods are delivered.

In Hong Kong, escrow services are typically provided by law firms, which are covered by professional indemnity insurance. Consequently, for large-scale transactions, opting for an escrow service provides an extra layer of protection. However, these services are costly, with fees often starting at approximately US$9,000.

If your transaction value is around US$500,000, you might consider asking your buyer or supplier for their financial statements or audited reports from the previous year. Please be aware, however, that this can be perceived as an intrusive or even rude request in Hong Kong business culture since it could appear as a sign of lack of trust; we generally do not recommend this practice unless a strong relationship already exists.

For transactions involving only a few thousand dollars, conducting independent research is usually sufficient. Searching Google for customer feedback and online reviews is often enough to determine if a buyer or seller is reliable and trustworthy.

Frequently Asked Questions