FastLane Company Liquidation & Deregistration Services in Hong Kong
When planning to close down a company in Hong Kong, it is essential to navigate the legal procedures carefully. Many shareholders are unfamiliar with the formalities involved, which can lead to unintentional breaches of the law. FastLane company liquidation service specializes in guiding businesses through this complex process, ensuring compliance with Hong Kong’s legal requirements.
Type of Hong Kong Company Liquidation
FastLane offers comprehensive liquidation services tailored to your business’s specific needs. Whether your company is solvent or insolvent, we handle every aspect of the process, ensuring a smooth and efficient liquidation.
Limited Company liquidation in Hong Kong typically falls under three main categories:
Voluntary Liquidation by Shareholders
This is suitable when the company is solvent, meaning it can settle all its debts. The following conditions must be met for voluntary liquidation by shareholders:
- The company’s account books are complete.
- A majority of shareholders have consented through an extraordinary resolution.
- A liquidator is appointed to handle the process.
FastLane guides you through the entire voluntary liquidation process, ensuring transparency and compliance.
Voluntary Liquidation by Creditors
For companies that are insolvent, where debts exceed assets, creditors can initiate voluntary liquidation. The process involves:
- Appointment of a certified public accountant or solicitor as a liquidator.
- Control is passed to creditors to manage the liquidation process.
FastLane ensures that creditors’ interests are safeguarded, and all legal obligations are met.
Statutory Liquidation by the Court
If liquidation is mandated by a court order, statutory liquidation is conducted. This process may be initiated by the company itself, creditors, the Company Registrar, or the Official Receiver. The court assigns a liquidator, and multiple meetings with directors, shareholders, and creditors are held throughout the process.
Our team at FastLane is experienced in handling statutory liquidations, ensuring compliance with court orders and a seamless process for all parties involved.
Talk To An ExpertCompany Dissolution Services
We ensure that your company’s closure is handled professionally and in full compliance with Hong Kong law. We provide two main services:
Voluntary Winding-Up
For companies with assets or financial obligations, winding-up is the appropriate process. This can be initiated by members (shareholders) if the company is solvent, or by creditors if the company is insolvent.
Deregistration
Deregistration is a cost-effective method for companies that have ceased business, with no outstanding liabilities.
Hong Kong Company Deregistration
Under Section 291 of the Companies Ordinance (Cap. 32) of the Laws of Hong Kong, a company must meet the following conditions to apply for deregistration with the Companies Registry:
- Obtain consent from all shareholders.
- Ensure the company has not commenced business or has ceased business for at least three months before the deregistration application.
- Have no outstanding debts, including government license fees and taxes.
- Be free of any legal proceedings.
- Not own any immovable property in Hong Kong.
- If the company is a holding company, ensure that none of its subsidiaries hold immovable property in Hong Kong.
- Obtain a Written Notice of No Objection from the Commissioner of Inland Revenue.
If an objection to the deregistration is filed, an application for re-registration can be made to the court within 20 years from the deregistration’s effective date, which may result in the court ordering the Companies Registry to reinstate the deregistered company.
We handle all the necessary filings with the Companies Registry and the Inland Revenue Department, ensuring a hassle-free experience.
Our Process for Company Liquidation Service
Evaluating Your Business
We assess your company’s financial position to recommend the most suitable closure method, whether it’s voluntary liquidation or deregistration.
Preparing the Documentation
Our team prepares the required paperwork for submission to the relevant authorities, including the Inland Revenue Department and the Companies Registry.
Filing with Authorities
Our team handles all filings, including applications for deregistration or liquidation, and coordinates with the relevant regulatory bodies.
Dormant Company Status
If your company isn’t generating income but you’re not ready to close it, apply for dormant status. Save on unnecessary expenses with minimal maintenance. Stay registered and flexible to resume operations or proceed with dissolution when ready.
Talk To UsFrequently Asked Questions (FAQ)
What happens to the assets after company liquidation?
Once a company is closed, its assets and liabilities are handled based on the closure method. Assets may be distributed to shareholders before the closure, sold to pay off creditors, or in some cases, transferred to the Hong Kong Special Administrative Region Government as ‘bona vacantia.’
Are directors personally responsible for company debts?
Generally, directors are not personally liable for a company’s debts unless they have gained unlawful advantages or breached their duties as directors.
How long does the company liquidation process take in Hong Kong?
The company liquidation process typically takes between 6 and 9 months, while liquidation can extend up to 12 months, depending on the company’s complexity.
Who can serve as a liquidator?
For creditor’s liquidation, a certified public accountant or solicitor must be appointed as the liquidator. In cases of shareholder liquidation, the liquidator is usually appointed by the company’s members.
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