De-register/Cancel Your HK Company

Hongkong Company Deregistration

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Although you might feel like it is time and sensible to close your company, you should avoid deregistering your HK business unless and until it is completely necessary. Consider different options, such as other business operations or possibly changing the company to a dormant status, until you begin to start operations again. Below are some of the main reasons as to why you should close your company in Hong Kong:
It has failed to carry any sort of business.
It is not able to earn any profit.
The company is not able to pay of its debts.
There is a fallout between the shareholders of the company.
The statutory obligations were not complied with, which includes the mismanagement of company affairs and many others.
There is a corporate restructuring of the association that owns the company.

Company’s Eligibility to De-registration
For a company to be deregistered with the government, it would have to be a defunct solvent and a private limited or limited by guarantee company. A company is said to be defunct when it is no longer functional. And it is said to be solvent when the business does not have any liabilities or debts and can be closed easily. Basically, before you can close your company, you should be clear from any legal issues and debts. Other than that, it should no longer be operating or earning any profits.

Here are the conditions that you would have to meet before you can apply for the de-registration of your HK company:
Every member of the business approves for the deregistration.
There is no outstanding liabilities in the company.
There isn’t any legal proceedings of the company.
The assets of the company does not include immovable property in Hong Kong.
The business operations have not yet started in the company; or the company has not been able to operate for at least 3 months before the application is submitted.
The company has received the Notice of No Objection (NNO) from the IRD so that it can be deregistered.

If these are true for your business, you would be able to close your company. You would need to use the “Notice of No Objection” and the required fee for applying for the de-registration of your HK company. Below are the steps that you would have to follow for closing your company:

Step 1
In this step, the company would need to receive the No Objection Letter from the Inland Revenue Department. To get this, you need to properly file for de-registration and then give it to the Commissioner along with the fee for the de-registration of your HK company. As a matter of fact, if your request is declined or you change your mind to not close your business, you would not be able to get the fee back, as it is non-refundable.

Step 2
As soon as the company receives the “Notice of No Objection,” you would then have to proceed with the application for the deregistration of your HK company. This application should be submitted to the Registrar of Companies. Below are the documents that are needed to be given to the Companies Registry (CR):
The form NDR1 that is properly completed.
The original copy of the “Notice of No Objection” that was obtained from the IRD’s Commissioner.
Any additional document that the CR can request that is in connection to deregistering your company.

Restoration of a Deregistered company
In case an aggrieved party, such as a creditor, wants your company to be restored after you have de-registered it, then they would take the help of the IRD. Also, the person would need to submit an application to the Court of First Instance. This is to restore the business by agreeing to the Companies Ordinance section 765 (2). For directors or members of a company, this process does not work.
On the contrary, if you were a member or director of the company and want to restore it within 20 years of its dissolution, you would have to apply for the Administrative Restoration. To be able to apply for the administrative restoration, the name of the company should have been removed from the CR and the company should have been dissolved after it. As a matter of fact, the dissolved company cannot be restored through administrative restoration.

Conclusion
With the steps and information shared above, you now know all how to complete the de-registration of your HK company and when you should do it. Just ensure that you follow all the rules strictly. Also make sure that your company is at the state where you are not able to earn any profit and there is no use of running it anymore. Other than that, it is highly recommended that you engage a professional agency like Startupr to help you in timely assistance and proper guidance. Contact us to know more details!

Contact
If you wish to obtain more information or assistance, please contact us through the following and talk to our professionals:
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