CLOSING DOWN A HONG KONG COMPANY
The process of closing down a company is referred to as “liquidation” in general. Companies can be liquidated either by “De-Registration” or “Winding Up”. The procedure will result in the dissolution of a company.
De-registration 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.
De-registration of a company
All the members of the company agree to the deregistration
The company has never commenced business or operation or has ceased operation for more than 3 months immediately before the application
The company has no outstanding liabilities
The company must obtain a written notice of no objection from the Commissioner of Inland Revenue
Measures to be taken before submitting Deregistration
Close all bank accounts
(all cash or cash equivalents will be transferred to the government treasury after successful deregistration)
Clear all Liabilities (to all business partners)
No properties in the name of the deregistering company
Dispose of all assets which are the companies name