Members of a Hong Kong company may decide to close down their Hong Kong company. Some of the reasons why some of our clients have selected to close their Hong Kong company include:
-Delay or cancellation of the initial project for which the company was set up.
-Inability to open a bank account in Hong Kong for the company
-Failure to carry on a profitable business
-Shareholders disputes
-Change of business plan or country of operation
There are two ways to close a Hong Kong company: deregistration and winding up. The deregistration is most common and apply to dormant or otherwise solvent companies. Winding up applies to companies with creditors, are more complex and require more time as well as legal assistance.
The requirements for company deregistration (or striking off) are as below:
1-All shareholders/members of the company agree to deregister the company
2-The company has never commenced operations, or has already ceased business for three months or more
3-The company does not plan to conduct business in the future
4-The company has no outstanding liabilities, including profit tax, property tax, stamp duty, business registration fee, outstanding fines or penalties, court fees, obligations to the inland revenue department (such as pending annual return, assessable tax etc.).
5-The company has disposed of any existing trading stock, properties or securities
If some of the requirements are not met (such as fees due to the company registry etc.), these must be addressed prior to the deregistration to go through.
A written notice from the Inland Revenue Department stating that the company the Commissioner has no objection to the company being de-registered.
The 3-Step Deregistration Procedure
Once requirements are met, the company (or its directors/shareholders) can proceed with the deregistration in three steps:
1-Hold a board of director meeting to pass a resolution to deregister the company
2- Apply in writing to the Inland Revenue Department for a Notice of No Objection for Deregistration of a Defunct Company
3-Apply in writing to the Companies Registry for deregistration of the company.
Can you deregister the company by yourself or do you need to use a third party?
While it is entirely possible for a company to go through the deregistration process by itself, it is highly recommended to use a knowledgeable third party to ensure that no mistake are made which will save time and money in the long term. This is especially through when the company officers are not Hong Kong residents.
Sinovantage Hong Kong company deregistration services
Sinovantage can assist with deregistering Hong Kong companies whether the company was set up through us or not. Our accountants will help ensure that the company meets all the requirements for deregistration, and prepare all the documentations on your behalf. Throughout the registration, Sinovantage will serve as your company secretary and provide the registration address to ensure all communications from the Company Registry, the Inland Revenue Department or other government agencies are received in a timely manner.
To learn more about our Hong Kong company deregistration services as well as service charges, please go to our Hong Kong company deregistration page ; if you need further information, feel free to contact our offices in Hong Kong or Shanghai.
Additional Resources
Need to learn more about Hong Kong company deregistration? There is no better resources than the related government websites:
www.gov.hk/en/business/registration/deregistration
www.cr.gov.hk/en/faq/faq08.htm