Cheapest way to close a Hong Kong company

The most cost-effective way or properly closing a Hong Kong Company that is Solvent is a process called Deregistration. This is done under s291AA of the Companies Ordinance. To go this route you need to make sure that;

All the members of the Company agree (do this by a shareholders meeting)
– The Company hasn’t had any operations for 3 months
– There are no outstanding liabilities
– There is a tax clearance letter from the Inland Revenue. This is called the “Notice of No Objection”.

The Notice of No Objection can be obtained by submitted a completed Application Form (IR1263); and a fee of $270 which is non-refundable regardless of the result of the application. This is fairly straightforward but sometimes needs a cover letter to explain any of the circumstances for clarity.

Once the above conditions are satisfied, application for deregistration may be made to the Companies Registry. This is done by filling in Form NDR1 together with a non-refundable fee of HK$420. This is a fairly simple, fact-based form. It has to be done in original. You also need to provide the “Notice of No Objection” at this time.

Example form –

The Registry will then publish a notice of the proposed deregistration of the company in the Gazette, stating that unless objection is received within 3 months of the date of publication, they will deregister and dissolve the company. Assuming that no objection is received at the end of the 3-month period, the company may be deregistered by the publication of another second notice in the Gazette declaring it to have been deregistered on the date of the second notice..

That’s it!

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