Hongkong/China company service Email:fxy@citilinkia.com Hotline: 86-755-82213750
Hong Kong company deregistration involves a certain number of formal steps and the overall process can take many months to complete. Depending on how the company is being closed, this process can also be expensive therefore the decision to do so must be made after careful thought and consideration.
The most common reasons for closing a company are:
Failure of the company to carry on business
Company is no longer profitable
Inability to pay its debts
Falling out between shareholders
Non-compliance with statutory requirements, including mis-management of company affairs
Corporate restructuring of the group to which the company belongs
The process of closing down a company is referred to as “liquidation” in common terms. Companies can be liquidated either by “De-registration” or “Winding Up“. Although both the procedures will result in the dissolution of a company, the processes they entail are significantly different.
Deregistration is a relatively simple, inexpensive and quick procedure for dissolving defunct private companies who meet certain specific requirements. Winding up is the process of appointing a liquidator who will settle the accounts, pay off the company’s debts (if any), liquidate the assets of a company and distribute the surplus assets (if any) to members, ensuring that the company is completely dissolved.
Requirements
The company must be a solvent private company incorporated under the Hong Kong Companies Ordinance, other than those companies specified in section 291AA(16) or registered under Part XI of the Companies Ordinance, and must meet the following requirements:
All the members of the company agree to the deregistration
The company has never commenced business or operation, or has ceased to carry on business or ceased operation for more than 3 months immediately before the application
The company has no outstanding liabilities
It has obtained a written notice of no objection from the Commissioner of Inland Revenue
Contact Us
If you want to know more about HK company cancellation, you are welcome to contact Miss Vera Zhang by calling 86-755-82213750/13530066130(wechat) or email to fxy@citilinkia.com.