Businesses face ups and downs. And when it becomes difficult for a business to sustain operations, it is sometimes wiser to close it and venture into other opportunities. A company leaning towards this unfortunate outcome needs to see details on the deregistration of a company in Hong Kong.
Which company Can Apply For Deregistration of company In Hong Kong?
Deregistration of a company in Hong Kong necessitates documents and a series of legal proceedings for the process to be completed.
Private companies and any company limited by guarantee are allowed to apply for deregistration. These companies should be defunct solvent companies. Meaning, they must be currently non-operational and have no outstanding debts and liabilities.
The exclusion criteria for these companies are those from public companies, insurance, and trust companies, and banks, as stipulated in S749 of Hong Kong’s Companies Ordinance. Also, a non-Hong Kong company is not entitled to apply for deregistration.
Reasons For Deregistration of company In Hong Kong
Not all companies reach a successful outcome. Reasons for company deregistration in Hong Kong include the following examples:
Company violation of legislative responsibilities.
The company is not profitable anymore.
Conflict among company shareholders.
Essentially, conflicts that tarnish the reputation and have a massive decline in profitability are companies that are possibly for deregistration.
Deregistration of company In Hong Kong: Meeting The Requirements
Not every company can be eligible for application for deregistration. In Hong Kong, if a company wishes to do such, the following requirements that they must meet include the following:
All the members of the company, along with its directors and shareholders should agree to the deregistration.
The company cannot be in business during the 3 months from filing the deregistration.
The private company has no outstanding liabilities.
No legal cases and no immovable property owned by such a company.
The company must have a “notice of no objection”
The Steps For Deregistration of company In Hong Kong And How Long It Takes
There are two main steps for the deregistration of company in Hong Kong. These include:
From the Inland Revenue Commissioner, obtain the “Notice of No Objection.” This is done by filling out Form IR1263, which is downloadable from the Inland Revenue Department website.
Deliver the following documents to the Companies Registry:
The original copy of your company’s “Notice of No Objection.”
Completed Form NDR1.
HK$420, which is a non-refundable fee.
Other information, as required in special cases.
Usually, deregistration can be processed within five months days. A company with complete documents can receive their letter of approval by then.
Statutory Obligations To Observe During And After Deregistration
A company is required to observe its statutory obligations, including filing annual returns, making a report of changes, designating representatives, and the like until the company is officially dissolved.
The company’s directors must keep their records for at least six years after the company dissolved. Furthermore, a company can opt to apply for restoration within 20 years from its official date of dissolution.
Who Can Assist You In Company Deregistration in Hong Kong?
Company deregistration sure needs a lot of paperwork to deal with. If a company already has its hands full with all the technicalities of company dissolution, it would be best to opt for the professional service of SJH Global.
SJH Global has experts who can help companies with secretary services, as well as other professional help to your company. Contact them today to have efficient and top-notch secretarial services.
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