Closing a company can be a challenging and emotional decision for any business owner, but sometimes it’s the best course of action. If you’re thinking about closing your company in Hong Kong, there are certain steps you need to take to ensure a smooth and legal process. In this guide, we’ll walk you through how to close a company in Hong Kong in five simple steps.
Step 1: Hold a Shareholders' Meeting
The first step in how to close a company in Hong Kong is to hold a shareholders’ meeting. This meeting should be attended by all shareholders, and the decision to close the company should be made by a majority vote. The meeting should also appoint a liquidator who will be responsible for winding up the company’s affairs.
Step 2: Notify the Business Registration Office
Once the decision has been made to close the company, you need to notify the Business Registration Office (BRO) within one month of the resolution to wind up the company. You’ll need to submit Form NAR1 (Notification of Cessation of Business) and pay the relevant fees.
Step 3: Cease Trading and Settle Outstanding Debts
Before the company can be closed, it must cease trading and settle all outstanding debts. This includes paying off creditors, terminating contracts, and settling any outstanding tax liabilities. Any assets of the company should be liquidated to pay off debts.
Step 4: File a Notice of Intention to Remove the Company from the Register
Once all debts have been settled, you need to file a Notice of Intention to Remove the Company from the Register with the Companies Registry. This notice should be published in the Gazette, and a copy should be sent to the BRO. The notice will state that the company will be removed from the register after three months, unless an objection is raised.
Step 5: Apply for Deregistration
After three months have passed, you can apply for deregistration with the Companies Registry. This involves submitting Form NDR1 (Application for Deregistration of a Defunct Company) and paying the relevant fees. If there are no objections, the company will be removed from the register, and the process will be complete.
Closing a company can be a complex and challenging process, but by following these five steps on how to close a company in Hong Kong, you can ensure a smooth and legal process. It’s essential to seek professional advice and assistance to ensure that you comply with all legal requirements and avoid any potential penalties. With the right preparation, you can close your company in Hong Kong with minimal stress and move on to new opportunities.