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 tannetmy@gmail.com,
Malaysia company address: Unit 6.06, Level 6, Amoda 22, Jalan Imbi 55100 Kuala
Lumpur.