Shareholders planning to terminate a company need to be aware of the complex legal processes that must be undertaken in Hong Kong. Failure to complete these appropriately may result in violations of the relevant legislation.
MarbleConsultants offers a professional service to assist shareholders to terminate their company effectively and comply with all required legislation.
There are two routes to liquidating a company. Firstly, by winding up using an appointed liquidator. Secondly, in some circumstances deregistration is possible. This is a relatively simple, inexpensive and quick procedure for dissolving defunct private companies.
There are three methods for dissolving a limited company in Hong Kong. These are members’ voluntary liquidation, creditors’ voluntary liquidation and compulsory liquidation by the court.
1. Members’ voluntary liquidation
The following conditions must be met
3. Compulsory liquidation by the court
Statutory liquidation is petitioned by the court. The following conditions apply
Deregistration is a relatively simple way to dissolve a limited company. However, this procedure is only possible if a company has no debt and has never been in business or ceased operations more than three months before the application.
According to Hong Kong Companies Ordinance Chapter 32 of the 291 provisions, to apply for company deregistration from the Companies Registry the following conditions must be met:
MarbleConsultants are specialists in assisting clients with the liquidation and deregistration processes. Our extensive case experience underpins our professional service helping clients to smoothly terminate their companies. We follow all procedures from drafting deregistration papers and minutes until the company’s deregistration date.
We advise clients throughout the process and provide practical support such as verification of all the required documentation within fast timescales. We also manage financial escrow requirements and will submit relevant documentation to the Hong Kong Inland Revenue department and Companies Register.
Whether a compulsory or voluntary liquidation our consultants’ extensive knowledge and experience will assist you throughout the process.
Our legal and accounting expertise ensures that MarbleConsultants provide clients with an effective understanding of complex issues. We work with clients to provide a sensitive, precise service that supports you from beginning liquidation to the company’s deregistration date.
A: These are three ways to dissolve an existing company. Deregistration is a simple, inexpensive and speedy process to dissolve defunct private companies. Applicants file for deregistration by submitting the specified form (Form DR1).
Striking off is initiated by the Registrar of Companies to remove defunct companies from the register.
The liquidation process is monitored and managed by an appointed liquidator. It includes settlement of accounts, realising and disposing of company assets and dividend payment to creditors (if possible). After all procedures are completed the company is dissolved.