【Companies Registry】Amended Forms and Considerations for Business Transactions

The Companies Registry has announced that starting from 27 December, 2023, they will fully adopt the revised forms, which primarily involve replacing the Company Incorporation Certificate (CI) number with the Business Registration (BR) number. 

When filling out forms such as the Annual Return, company transactions, changes in shareholders, or address updates, it is important to use the new forms. 

While the changes may seem small, they can have significant implications. 

Although there is a six-month grace period after the implementation of the new regulations, those planning to engage in business transactions or transfers should pay special attention. 

Informal business deals can happen spontaneously, formal procedures for company transactions require time and proper documentation to comply with requirements such as submitting accounting records as requested by the Inland Revenue Department.

Ordinarily, companies undergo annual audits, but deciding to sell a company requires starting the process for that particular year. It is not a task that can be completed in a matter of days. Companies that have not received tax returns for several years will have to start from scratch. 

In the case of large-scale business transactions, due diligence is necessary, involving more complex steps that may take months or longer. Without complete supporting documents, the share transfer process cannot be completed.

Furthermore, there are specific deadlines and penalties for submitting share transfer applications. It is crucial not to procrastinate and rely on the grace period to complete the process, as it may leave you with outdated forms in hand and no viable solution. 

Imagine if the selling party, who signed the old forms, has already completed their tasks and left the country. Requesting them to resign various documents would be extremely challenging. 

Time waits for no one, so companies intending to engage in business transactions are advised to consult with an accountant before proceeding.

Every industry has its own “exclusive” business techniques. Engaging with an experienced accountant can help you avoid unnecessary detours and naturally expand your business.

Find the right people and do the right things. That’s how everyone becomes an expert.

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