Hong Kong Company Deregistration

Update Date:2019-5-31 16:48:57 Source:Tannet (Malaysia) Sdn Bhd Views:388

Malaysia Hotline: +603-2141 8908

For entrepreneurs who already have company in Hong Kong, they may encounter such entanglements as if the company no more operated in the future, can it be close down by not doing Annual Return or applying for deregistration? We suggest that if the Hong Kong Company no longer operating, it is best to close down it through formal procedure.

1. The necessity of deregistration of Hong Kong company

According to the relevant laws of Hong Kong, Hong Kong companies must conduct annual return after one year of registration. If they are not processed within the time limit, they will accumulate a cumulative fine. If it has been ignored, they will receive a government summon. At the same time, the Hong Kong government will force a winding-up and deregister. The company is required to pay the annual return fee and the accumulated fine, and the company's directors will also be blacklisted. Impaired personal reputation has a negative impact on its business operations in Hong Kong. Therefore, when Hong Kong Company is no longer operating, deregistration is the right, safe and legal choice.

2. The consequences of not undergo deregistration process

2.1 Inland Revenue Department will require company to declare tax return, overdue report will produce fine, even tax assessment and receive summon from the court.

2.2 Directors and shareholders of the company may be listed into blacklist, it will affecting their reputation.

2.3 The company is blacklisted and will be forcibly close down and the bank account will be frozen.

2.4 It will have an impact on the registration of Hong Kong Company in the future. If you apply to open a Hong Kong bank account again, bad records will affect the success rate of account opening.

2.5 It will have an impact on entry and exit in the future. Blacklisted directors and shareholders may be required to assist in the investigation when entering Hong Kong.

3. How to deregister the Hong Kong Company

a)      Applicant of Company Deregistration

The company's directors and the company's legal secretary can submit applications.

b)    To file an application for deregistration, the following conditions must be met:

·         no charges owed to the Inland Revenue Department;

·         no annual return fee owed to the Companies Registry;

·         no debts disputes;

·      The company has never started to operate, or has ceased to operate for more than 3      months;

·         All members of the company agree to deregister the company.

c)    Required documents for deregistration

·         Hong Kong company basic information (Company registration certificate, business license,     a latest annual return, a constitution, a seal);

·         A scanned copy of the ID card or passport of the directors and shareholders;

·         Latest audit report.

a)    Procedures of company deregistration

·     Inland Revenue Department issued the “Notice of No Objection to a Company being     deregistered”. The notice will be issued within 25 working days after the applicant submits     the valid application and pays the relevant fees.

·     If you apply for a deregistration of the company with a “Notice of No Objection to a     Company being deregistered” to the Hong Kong Companies Registry, the Hong Kong    Companies Registry will publish the application twice in the Gazette.

·      After the publication of the first gazette notice, there will be a three-month time limit for    objection. If no objection is received within 3 months, the Hong Kong Companies Registry   will publish a second gazette notice. The company will be officially cancelled after the    period.

4. Precaution for company deregistration

a)    Best time for company deregistration

It is best to apply for deregistration in the three months before the date of the annual return of the Hong Kong company. Otherwise, it will cost an additional year's annual return and tax return.

b)    Clear the assets under the company name before the deregistration

After the Hong Kong Company is deregistered, all the assets in its name, including the bank account balance, will be owned by the government as unowned financial. Therefore, before submitting an application, you should consult a professional consultant regarding the disposal of the company's assets to ensure that all assets owned by the company are properly disposed of before the company is deregistered.

Before deciding to cancel the company, you can first consider transfer the Hong Kong Company. This will not only be able to write off the Hong Kong Company, but also the profits of the selling company. However, the transfer of Hong Kong Company must be carried out through a professional agency, otherwise it may bring risks.

For more information, please feel free to call the Tannet service hotline: 603-2141 8908 or email, Malaysia company address: Unit 6.06, Level 6, Amoda 22, Jalan Imbi 55100 Kuala Lumpur.

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