Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 37

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 37
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, experience and resources necessary to provide services that are better in quality and/or
more competitive in pricing compared to our services. Failure to maintain or enhance our competitiveness within the industry or maintain
our customer base may adversely affect our financial performance and profitability.

Failure to comply with, or changes in, laws
and regulations applicable to our businesses could have a materially adverse effect on our reputation, results of operations or financial
condition, or have other adverse consequences.

Our business is subject to
a wide range of complex laws and regulations, including, but not limited to, the laws and regulations described in the “ Regulations”
section. Failure to comply with laws and regulations applicable to our operations or client solutions and services could cause us to incur
substantial costs or could result in the suspension or revocation of licenses or registrations, the limitation, suspension or termination
of services, the imposition of consent orders or civil and criminal penalties, including fines, and lawsuits, including class actions,
that could damage our reputation and have a materially adverse effect on our results of operation or financial condition.

In addition, changes in laws
or regulations, or changes in the interpretation of laws or regulations by a regulatory authority, may decrease our revenues and earnings
and may require us to change the manner in which we conduct some aspects of our business. We are not required to obtain any license from
the relevant government authorities for the provision of payroll outsourcing services in Hong Kong. The Company relies on its own administrative
staff to maintain its compliance status regarding Taiwan and Macau, therefore, based on management belief, we are not required to obtain
any license from the relevant government authorities for the provision of payroll outsourcing services in Taiwan and Macau, respectively.
In addition, we had obtained all requisite licenses, permits and approvals for our business operations in Hong Kong including the business
registration certificates and the employment agency license, and based on management belief, we are not required to obtain any license
from the relevant government authorities for the provision of employment services in Taiwan. For acting as employers of record for our
end-users in providing employment services in the PRC, we are required to obtain, and have obtained, the Labor Dispatch Operation Permit.

If any of the government
of the PRC, Hong Kong, Taiwan and/or Macau imposes any new or further licensing requirements, we may incur extra costs and human resources
in complying with such requirements, laws and/or regulations and our business may be materially affected and we cannot guarantee that
we will be able to obtain any additional licenses, if