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Hong Kong Compliance News Update

The Making and Use of Common Seal
By Patrick Lee on 23 March 2015


The new Companies Ordinance (Cap. 622) simplifies the procedures for starting a business in Hong Kong by making the keeping and the use of a common seal optional (section 124(1)).

Making and Use of Common Seal

There is no specific provision in the new Companies Ordinance (Cap. 622) or the Companies (Model Articles) Notice (Cap. 622H) on any procedural requirement for a company to adopt or cancel its common seal. It gives flexibility to companies and allows companies, whether existing companies or companies incorporated under the new Companies Ordinance, to keep or adopt and use their common seals, though the requirement is no longer mandatory.

For more information regarding the use of common seal or execution of documents may be adopted by companies, a company should seek independent legal or other professional advice in case of doubt.