Striking Off a Hong Kong Company: An Overview
Striking off or deregistration of a company in Hong Kong is a formal process that signifies the cessation of business operations by a company. This process is initiated by applying to the Companies Registry, and it has several important requirements and steps.
Deregistration Requirements
Before applying for company deregistration in Hong Kong, certain criteria must be met:
Unanimous Agreement
All company members must agree to the deregistration.
Dormancy
The company must not have commenced operations or must have ceased business for more than three months.
No Intention to Resume
The company should have no intent to resume operations.
Asset Disposal
The company must have disposed of all landed property, securities, and trading stock.
No Liabilities
The company should have no outstanding liabilities or obligations under the Inland Revenue Ordinance.
Filed Annual Returns
All annual returns must be filed by the company.
No Outstanding Objections
There should be no unsettled objections or appeals regarding deregistration, and no unanswered inquiries from the Inland Revenue Department.
Required Documents
To facilitate the deregistration process, specific documents need to be provided:
- Copy of Latest Annual Returns
- Copies of Filings Conducted After the Latest Annual Returns
- Copy of Current Business Registration Certificate
Deregistration Procedure
The Hong Kong company deregistration procedure entails several key steps:
Debt Settlement
Ensure no outstanding debts are present, and settle any if found.
Payment of Deposits
Confirm that trade deposits or utility deposits have been paid.
Bank Account Closure
Make arrangements to close the corporate bank account, if applicable.
Document Preparation
Prepare necessary documents for deregistration.
Notice of No Objection
Apply to the Hong Kong Inland Revenue Department for a Notice of No Objection for Deregistration of a Defunct Company, which may take up to four weeks.
Application to Companies Registry
Submit an application in writing to the Hong Kong Companies Registry for company deregistration, which takes up to six months.
Asset Handling
Ensure proper handling of receivables and assets, as any remaining assets will become property of the Hong Kong Government upon deregistration.
Important Considerations
Notifying the Companies Registry of any address changes during the application process is vital. Additionally, if a company decides against deregistration, a separate application with the Court of First Instance is required for restoration.
Winding Up in Hong Kong
Winding up a company in Hong Kong involves settling accounts, liquidating assets, and distributing net assets to members. It can be initiated by court order or voluntarily if the company can pay its debts.
