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A Due Diligence Form helps companies and investors thoroughly check potential business partners or investment targets in Hong Kong's financial markets. It's a structured checklist that captures key information about a company's finances, legal standing, operations, and compliance with Hong Kong regulations, including requirements from the Securities and Futures Commission (SFC).

When completing this form, businesses must disclose details about their ownership structure, financial records, material contracts, and any ongoing legal matters. This documentation protects investors and companies by revealing potential risks before finalizing major transactions, while ensuring compliance with Hong Kong's anti-money laundering laws and corporate governance standards.

Use a Due Diligence Form when planning major business transactions in Hong Kong, especially during mergers, acquisitions, or significant investments. It's essential before committing resources to partnerships, joint ventures, or when buying substantial company shares on the Hong Kong Stock Exchange.

Financial institutions and corporate investors rely on these forms during pre-deal investigations, particularly when vetting potential business partners or investment targets. The form becomes crucial when dealing with cross-border transactions, evaluating mainland Chinese companies, or when local regulations require enhanced due diligence���such as transactions involving SFC-licensed entities or listed companies under HKEX rules.

• Standard Commercial Due Diligence Forms focus on business operations, financial health, and market position
• Legal Due Diligence Forms examine regulatory compliance, litigation history, and contractual obligations under Hong Kong law
• Financial Due Diligence Forms detail capital structure, financial statements, and tax compliance with HKEX requirements
• Technical Due Diligence Forms assess IT systems, intellectual property rights, and data protection measures
• Environmental and Social Due Diligence Forms evaluate sustainability practices and compliance with Hong Kong's ESG reporting guidelines

• Investment Banks: Lead the due diligence process, coordinating with legal teams and preparing comprehensive Due Diligence Forms for major transactions
• Corporate Lawyers: Review and customize forms to meet specific deal requirements and Hong Kong regulatory standards
• Company Directors: Provide and verify information, sign off on responses, and assume liability for accuracy
• Compliance Officers: Ensure forms meet SFC requirements and align with internal risk management protocols
• External Auditors: Verify financial information and provide independent assessment of disclosed data

• Company Information: Gather corporate documents, business registration details, and shareholding structure from the Hong Kong Companies Registry
• Financial Records: Collect audited financial statements, tax returns, and management accounts for the past three years
• Legal Status: Document ongoing litigation, regulatory compliance certificates, and material contracts
• Operational Details: List key assets, intellectual property rights, and employee information
• Risk Assessment: Identify potential red flags, regulatory issues, and market risks specific to Hong Kong operations

• Company Overview: Legal name, registration number, business address, and corporate structure details
• Financial Declarations: Statement of assets, liabilities, revenue streams, and material financial obligations
• Regulatory Compliance: SFC licenses, HKEX compliance status, and relevant industry permits
• Legal Disclosures: Ongoing litigation, contractual obligations, and intellectual property rights
• Verification Statement: Declaration of information accuracy signed by authorized representatives
• Data Protection: PDPO compliance statement and data handling procedures

A Due Diligence Form differs significantly from a Due Diligence Checklist in several key aspects. While both support thorough business investigations, they serve distinct purposes in Hong Kong's corporate landscape.

• Document Structure: Due Diligence Forms are comprehensive documents requiring detailed responses and supporting evidence, while checklists simply outline items to verify
• Legal Weight: Forms carry formal legal significance and can be used as evidence in disputes, whereas checklists primarily serve as internal guidance tools
• Completion Requirements: Forms must be properly executed with authorized signatures and company chops, while checklists typically need only informal verification
• Information Depth: Forms demand specific explanations and documentary proof for each item, but checklists merely confirm completion status