A dormant company refers to a registered business entity that is inactive or non-operational, typically not engaging in significant trading activities or generating substantial revenue. In Hong Kong, a company can declare itself dormant by passing a special resolution, formally stating its intention to enter a period of dormancy. This resolution needs to be submitted to the Registrar of Companies.
During dormancy, the company maintains its legal status but is exempt from certain obligations, such as delivering annual returns, unless dormancy cessation occurs after the 42nd day following its anniversary of incorporation. The company can remain dormant indefinitely, provided it complies with the relevant regulations. However, if it decides to resume trading or undertake financial transactions, it must cease its dormant status by passing another special resolution and notifying the Registrar of Companies.
Dormant status offers flexibility to companies, allowing them to pause operations temporarily without undergoing complex dissolution procedures. Businesses must understand the regulatory requirements and seek professional advice when declaring and ceasing dormancy.
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To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
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The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
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A dormant company refers to a registered business entity that is inactive or non-operational, typically not engaging in significant trading activities or generating substantial revenue. In Hong Kong, a company can declare itself dormant by passing a special resolution, formally stating its intention to enter a period of dormancy. This resolution needs to be submitted to the Registrar of Companies.