The Securities and Futures Commission (SFC) in Hong Kong has implemented a streamlined process for the registration, incorporation, and business registration of Open-ended Fund Companies (OFCs).

This revised approach ensures direct interaction with the SFC, simplifying the registration process for prospective OFC operators. Once the SFC registers an OFC, it notifies the Companies Registry (CR), which then issues a Certificate of Incorporation. Business registration with the Inland Revenue Department (IRD) is also conducted seamlessly under this framework.

Key Requirements

1. OFC Name Requirements
   
   

An OFC’s name must adhere to the following criteria:

• It must end with “open-ended fund company” or “OFC.”
• It must not duplicate an existing OFC name.
• It must not be misleading or inappropriate.
  
  

2. Instrument of Incorporation
   
   

Under Part IVA of the Securities and Futures Ordinance (SFO), an OFC must have an Instrument of Incorporation detailing:

• The company name.
• A statement confirming the company’s registered office in Hong Kong.
• The company’s objectives.
• Provisions regarding the types of assets the company will invest in.
• Statements affirming the OFC’s characteristics, such as variable share capital and limited shareholder liability.
  
  
  

Incorporation Process

The incorporation of an OFC involves the following steps:

1. Registration of the OFC by the SFC.
2. Issuance of a Certificate of Incorporation by the Companies Registry.
3. Issuance of a Business Registration Certificate by the Companies Registry on behalf of the IRD.
   
   

Required Documents for OFC Registration

To register an OFC, applicants must submit the following:

• Completed Application Form.
• Information Checklist.
• Copy of the Instrument of Incorporation, signed by the proposed directors.
• Additional documents as specified in the Information Checklist.
• Payment of registration or authorization fees, typically in the form of a cheque payable to the “Securities and Futures Commission.”

By adopting this streamlined process, the SFC aims to facilitate the establishment of OFCs while ensuring compliance with regulatory standards.