CTC: Essential for Cross-Border Business

I. Core Definition and Purpose

A Certified True Copy (CTC) refers to a copy of a document verified by a qualified professional (such as a practicing lawyer, certified public accountant, or notary public), confirming that its content is completely identical to the original document. It bears the verifier's signature, official stamp/seal, and the certification date.

Its core value lies in:

1. Substituting Originals: Avoids the risk of loss or damage to important documents (e.g., business licenses, passports) during mailing.

2. Verifying Authenticity: Proves the copy has not been altered, but does not guarantee the legality of the document's content itself (e.g., a CTC of a forged original document is still invalid).

II. When Do Businesses Need to Provide Certified True Copies?

1. Bank Account Opening (Most Common Scenario):

   • When opening bank accounts for Hong Kong or offshore companies, CTCs of documents like the Certificate of Incorporation (CI), Business Registration Certificate (BR), and directors' passports are required.

   • Banks use CTCs to confirm the company's legitimacy and the authenticity of directors' identities, complying with Anti-Money Laundering (AML) checks.

2. Cross-Border Transactions and Investments:

   • When registering offshore companies (e.g., BVI, Cayman Islands), CTCs of parent company documents (such as a Certificate of Incumbency) are needed.

   • When purchasing overseas property or applying for international licenses (e.g., financial services licenses).

3. Legal and Government Procedures:

   • Company mergers, acquisitions, and share transfers require CTCs of constitutional documents (e.g., Articles of Association); CTCs of contracts are needed as evidence in litigation.

   • When Hong Kong companies apply for a Business Registration Certificate or submit CRS (Common Reporting Standard) tax declarations.

III. Key Practical Operation Points

1. Qualified Certifier:

   • Recognized certifiers in Hong Kong include practicing lawyers, certified public accountants (CPAs), and notaries public. Company secretaries or consular officers may be accepted in some cases.

   • Note: Requirements can conflict between different institutions (e.g., Swiss banks often only accept documents certified by an international notary; some US banks require certification by a lawyer).

2. Essential Elements:

   • Each CTC must include the certifier's signature, certification date, name printed in BLOCK LETTERS with a statement of their capacity (e.g., "Solicitor"), the certifier's official stamp/seal, and a statement declaring "This is a true copy of the original document" or similar.

3. Validity Period and Costs:

   • Most institutions only accept CTCs certified within the last 3-6 months; expired copies require recertification.

   • Certification costs in Hong Kong are generally higher than in Mainland China (CPA certification is often more economical than lawyer certification).

IV. Recommended Process

1. Confirm Requirements: Verify the types of certifiers accepted and the required document list with the receiving party (e.g., the bank) in advance.

2. Choose a Certifier: Prioritize commissioning a Hong Kong practicing CPA or lawyer (widely recognized, cost-effective).

3. Prepare Documents: Provide the original documents for the certifier to compare; remote certification may require submitting a video of yourself holding the ID document for verification.

Case Example: A Hong Kong company applying to open an account with HSBC needed CTCs of the directors' passports and the company's CI/BR. The bank required certification by a Hong Kong registered CPA, with the copies issued within the last 3 months. If expired, recertification costs approximately HKD 800-1500 per copy.

Conclusion

Certified True Copies are an indispensable compliance tool for businesses engaged in cross-border activities, playing a critical role particularly in bank account opening and establishing offshore structures. Companies should strictly follow the receiving party's requirements when selecting a certifier and pay attention to validity periods to avoid business delays due to document issues.