• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Conventus Law

Conventus Law

Conventus Law

  • About Us
  • Channels
    • Jurisdiction Channel
    • Practice Area Channel
    • Industry Channel
    • Business Of Law
    • Law Firms
    • Special Reports
  • Video
  • Events
  • Explore
  • Search
  • Membership
  • Conventus Doc
x
Search

More results...

Generic filters
Home » Special Report » Taking Action Against Shadow Companies In Hong Kong.

Taking Action Against Shadow Companies In Hong Kong.

October 2, 2015

October 2, 2015 by

5 September, 2015 

 

 

Shadow Companies – The Problem
 
A shadow company is a Hong Kong-registered company that uses a famous brand or company name as part of its own name, whilst being totally unconnected to the brand owner.
 
Shadow companies are normally used as fronts to allow individuals behind them to trade off the reputation of a brand owner’s name in the PRC. 

The key elements of a shadow company are:
 
a. it has registered a name which incorporates the name of a well known brand;
b. its director(s)/shareholder(s) are PRC individuals;
c. its company secretary is a secretarial company which will usually incorporate the shadow company and provide its registered office address; and
d. it will authorise a separate PRC entity, which is often connected to the individuals behind the shadow company, to use its name, claiming authorisation from the brand owner.

In our experience, the shadow company will register their registered office address as their place of business with the Inland Revenue so that they have a Business Registration Certificate, giving the illusion they are trading in Hong Kong. 
 
In addition, the shadow company may also apply for a Hong Kong trademark under different classes to those used by the legitimate brand owner. 
 
Shadow companies pose substantial risks of financial and reputational damage to brand owners.

 

What Can You Do As Brand Owner?

 

Taking Action Against Shadow Companies In Hong Kong.

 

The first step would be to send a cease and desist letter to the shadow company demanding they stop infringing your intellectual property rights. The threat of using court proceedings may cause the infringement to cease and the director of the shadow company to change the company name. 
 
If no response is made, the next step would be to issue court proceedings against the shadow company. 
 
Once a writ is issued it is unusual for the shadow company to defend the proceedings. Normally default judgment and an injunction can be obtained within 2 months of proceedings being issued.
 
The last step, after an injunction has been ordered, would be to serve the injunction on the Companies Registry. The Companies Registrar will require the company to change its name within 6 weeks of being informed of the injunction. In the event the director does not change the name of the shadow company the Companies Registrar will arrange for the company’s registered number to be substituted in place of its name. 

CH-CoatedSHlogo_CMYK-withSpace

 

For further information, please contact:

 

Jezamine Fewins, Partner, Stephenson Harwood

jezamine.fewins@shlegal.com

Primary Sidebar

PRESS RELEASES

  • Bird & Bird Strengthens Disputes Capability In Life Sciences With French Partner Appointment. 15 September 2025
  • UK – Bird & Bird Appoints Energy Expert Jenny Murray As New Partner. 15 September 2025
  • Mitsubishi Completes Senior Notes Offering. 15 September 2025
  • Legal Tech Specialist From Epiq Warns – Without A Defined Data Strategy For AI, The Risks Outweigh The Rewards. 15 September 2025
  • Baker McKenzie Advises Shoucheng Holdings On Its HKD 600 Million Shares Placement. 15 September 2025

NEWS FEED

    September 15, 2025

    Germany – Five Ways To Save Labour Costs By Electric Charging – Green Mobility For Employers (Part 3).

    September 15, 2025

    US-EU Regulatory Divergence In Crypto-Assets: The Strategic Implications Of The Genius Act And MiCAR Framework.

    - Johannes Wirtz, LL.M. (London) - Bird & Bird, Bird & Bird
    September 15, 2025

    Protecting Place, Preserving Pride: Why Geographical Indications Matter For The Philippines.

    September 15, 2025

    Tracing The Widening Arc From Work Permits To World Wanderers: Key Updates In Philippine Immigration Law.

    September 15, 2025

    Securities Crowdfunding In Indonesia.

    September 8, 2025

    EU Revised Product Liability Directive 2024: Navigating The New Liability Framework For Non-EU Manufacturers.

    September 8, 2025

    EU AI Act Update: Ireland Appoints Its National Competent Authorities.

    September 8, 2025

    Send In The Troops? Proportionality, Notice And The Appointment Of Joint Provisional Liquidators In The Cayman Islands.

    September 8, 2025

    Appleby – The Guernsey Notary.

    September 5, 2025

    The Great Gamble: India’s Online Gaming Ban, The GST Battle, And What Lies Ahead.

Footer

Conventus Law
  • Linkedin
  • Twitter
  • Facebook

CONVENTUS LAW

  • About Us
  • Explore
  • Video
  • Events
  • Contact Us
  • Jurisdiction Channel
  • Practice Area Channel
  • Industry Channel
  • Law Firms
  • Business Of Law
  • Special Reports

OTHERS

CONVENTUS DOCS
CONVENTUS PEOPLE

3/f, 13/F, Two Harbourfront, 22 Tak Fung Street, Hunghom, Kowloon, Hong Kong

social@conventuslaw.com

Terms of use | Privacy statement © 2025 Conventus Law. All Rights Reserved.