Company Deregistration in Hong Kong
In this blog, we will learn what company deregistration is and when you should consider it. Furthermore, we will learn about all the terms and conditions and the processes involved in deregistration.
What is Company Deregistration?
Company deregistration in Hong Kong is a relatively inexpensive and quick process if you want to dissolve your company. There are a number of reasons why you would deregister a company. Firstly, your company may have failed to generate profits and file annual returns. Secondly, your company may have been unable to pay off the debts, conduct daily activities, and pay your employees. Likewise, the company may have conducted illegal activities outside of government regulations. Similarly, the shareholders of the company may have a degraded relationship and decided not to collaborate any further.
What Are the Required Conditions for Company Deregistration in Hong Kong?
There are several conditions that you must fulfil for proper company deregistration in Hong Kong. They are:
- All the members of the company must approve of the deregistration.
- All business operations of the company must cease three months prior to the deregistration.
- There must be no immovable company’s assets in Hong Kong.
- The company must not be involved in any legal proceedings.
- You must acquire a ‘Notice of No Objection’ from the Commissioner of Inland Revenue.
- All outstanding debts and liabilities must be cleared.
What Are the Processes Involved During Deregistration of Company in Hong Kong?
Prepare All the Documents Necessary for Deregistration
First, you must prepare all the documents that are required during the deregistration process. A company secretary can help you prepare all the documents that must be presented from the company’s side.
You must provide the following documents to the company secretary:
- An authorization letter allowing your company secretary to represent your company
- A document signed by all directors stating that they have agreed upon the deregistration
- A document signed by all members stating that they have agreed upon the deregistration
Clear All Issues With the Inland Revenue Department (IRD) and Company Registrar (CR)
You must be sure there are no issues with IRD and CR in terms of outstanding tax, property tax, tax returns, outstanding annual returns, employer’s return, court fees, business registration fees, etc. Your company secretary can investigate all your outstanding issues and remind you if any of them still exist.
Obtain a Notice of No Objection From the Commissioner of Inland Revenue
You can apply for the No Objection Notice through Form IR1263 in the Inland Revenue’s office. You must submit a small fee which is non-refundable whatever the outcome of your application may be. Most importantly, a company secretary can help you with the application process and make it quick and convenient.
Submit Your Deregistration Application to the Company Registrar (CR)
You must fill the NDR1 form, also known as the ‘Application for Deregistration of Private Company or Company Limited by Guarantee’. The CR will request the original copy of the ‘Notice of No Objection’ from the IRD. Your company secretary can keep track of all the documents that are required by the CR.
The Company Registrar will forward the process of deregistration in the Gazette of Hong Kong. The registrar will legally dissolve the company if there are no notices of objection within three months of the announcement of dissolution.
Upon dissolution of your company, the Hong Kong Government’s Special Administrative Region will deem your company’s assets as ownerless and hold them. Before the company deregistration in Hong Kong, you must seek professional advice regarding the proper disposal of the company’s assets.
How We Can Help?
3E Accounting can provide reliable company deregistration services in Hong Kong to make your job quick and hassle-free. Our award-winning company secretary services are both state of the art and affordable at the same time. Hundreds of satisfied customers are proof of our incredible professionalism.
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Contact us at +852 5749 4859 or email at email@example.com if you have any further inquiries.