With the development of world economic trade, Hong Kong attracts many people to register Hong Kong companies every year with its unique advantages. Of course, Hong Kong companies may also be cancelled due to poor management or other reasons. According to the requirements of the Hong Kong Companies Law, when a Hong Kong company no longer continues to operate, they need to apply to the Hong Kong government agency to cancel the company. So, what should you pay attention to when canceling a Hong Kong company?
1. Before applying for cancellation, the company should first deal with all assets under its name, including bank account balances, vehicles, properties, intellectual property rights, etc. Otherwise, once the company is dissolved, the assets will be regarded as unowned property of the Hong Kong government. If a Hong Kong company has opened a Hong Kong bank account, it must cancel the Hong Kong bank account before canceling the Hong Kong company;
2. The cancellation of a Hong Kong company is more complicated than other businesses of a Hong Kong company, and the situation of each company is different. When canceling the company, you must fully consider the current company’s bank account situation, asset situation, tax audit situation, annual review and processing situation and other factors to ensure that there are no unfinished matters, unpaid debts or unfinished objections and appeals. If there are any of the above situations, the cancellation time may be extended or the cancellation may be rejected;
3. After the company is cancelled, the applicant must submit an application for deregistration of the company to the Hong Kong Companies Registry within three months after receiving the no objection notice. Otherwise, the application may be delayed or even rejected;
4. If a Hong Kong company decides to end its business activities without canceling its operations or conducting annual tax activities, the directors of the Hong Kong company will be punished by Hong Kong law and even be included in the Hong Kong government’s blacklist. Not only will they not be able to register a new Hong Kong company, but they will also be subject to serious consequences such as entry and exit restrictions.
Without annual review and tax declaration, the Hong Kong government will forcibly remove the company, which will damage the reputation of the company’s directors and shareholders, and be blacklisted, restrict entry and exit in Hong Kong, and affect its future business in Hong Kong.
It is recommended to apply for cancellation procedures for Hong Kong companies three months before the expiration of the annual review of Hong Kong companies. Otherwise, the company’s annual review and tax declaration fees will take an extra year;
5. The annual tax declaration of Hong Kong companies in the past was an audit declaration, and a closing report should be provided for the application for company cancellation. If this report is not provided, the tax bureau is likely to not issue a notice of no objection to revocation, which will directly lead to the failure of cancellation. If the Hong Kong company’s annual tax return in the past was zero declaration, there is no need to make a closing report.
The above is what cross-border sellers should pay attention to when canceling Hong Kong companies. I hope it will be helpful to cross-border sellers. Lianlian International always pays attention to every little thing of sellers, and will bring articles about related aspects in future articles to help sellers operate better.