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In certain circumstances, you may want to hold your Hong Kong private limited company sometimes.
Dormant Status The Companies Ordinance allows an inactive Hong Kong private limited company to be maintained at a minimum cost by passing relevant special resolution and delivery necessary documents to the Registrar, to declare as a “dormant” company. A company is deemed to be “dormant” if it does not enter into a relevant “accounting transaction”and can exempt from the following statutory compliance:
1. Filing of yearly Annual Return 2. Preparation of Audited Accounts. 3. However, the company has: i. To comply with law (other provisions in the Ordinance) e.g. to report the change of director(s)/secretary or their particulars. ii. To pay its yearly Business Registration fee. iii. To keep proper books of accounts. iv. To file its profits tax return when required by the Inland Revenue Department.
Non-commencement If the company has been incorporated for quite sometimes with no business activity, no bank account but it does not take an action to declare “dormant”, the company is considered as “non-commencement”. For non-commencement,
1. Annual Return has to be filed yearly. 2. Annual Business Registration fee is still payable. 3. A financial statements have to be prepared yearly even there is “no activity” as there should be formation expenses, annual government payment, etc. 4. Audited accounts should not be needed but subject to the unique situation of the company. 5. Profits tax return has to be filed when required by the Inland Revenue Department.
In summary, on short-term basis (say less than 2 to 3 years), it is recommended to have the company registered as dormant with minimum costs.
If the company may not be operated for more than 2-3 years and you do not want to support any costs, the best alternative is to deregister the company.
Need Assistance INTERSHORES has over 20 years of corporate services experience and can assist you to apply for dormant status. Please do not hesitate to contact us at info@intershores.hk or by whasapp at (852) 6499 4686.
Whatsapp : (852) 6499 4686 Phone : (852) 2186 6936 Email : info@intershores.hk
Disclaimer: Whilst reasonable care has been taken in provision of information above, it does not constitute legal or other professional advice. INTERSHORES does not accept any responsibility, legal or otherwise, for any error omission and accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, readers are advised to take appropriate professional advice before committing themselves to any involvement in jurisdictions, vehicles or practice. |
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