How to deregister safely a company in Hong Kong

Closing a company is sometimes that may seem simple at first sight. However, it can be time consuming and a real pain if nothing is anticipated and done in a proper way.

A Hong Kong company can be closed via deregistration if all shareholders agree and the company has no liabilities.

The deregistration process can only start if both conditions below are met:

• Clear Tax

Please confirm the audit prepared is the final audit up till the date of business cessation.
Please confirm the liquidation process of its subsidiary in China Mainland if any is finished.

• Confirm offshore status

Please first confirm if the IRD has approved the offshore status or not.

If the tax is clear or if offshore status is confirmed, IRD will issue <A letter of no objection for deregistration> to company. All above will determine how long it will take before the company can start deregistration.

Once the deregistration started, the company has to dispose all assets* and close the bank account.

This closing process usually takes around 6-8 months to be completed. Please note that during the deregistration process, the Company is still required to observe all the legal compliance requirements such as annual return filing, employer return filing, keeping registers, company secretary, registered address and having a valid business license.

*dispose all assets: Please note that if the company is duly dissolved, the money in the bank account will be transferred to the HK government on the date or the next day of company dissolution and client will not be able to recover the funds.