1. Forced expulsion by the government

Many customers registered companies in Hong Kong, because of some reasons lack of maintenance, resulting in the company was forced to be removed from the Hong Kong Companies Registry. This will more or less have a bad effect on the shareholders and directors of the company/Record.

It takes a long time for a company to be forcibly delisted by the Hong Kong Companies Registry3Years. In this period of time, the customer will certainly not do the company's annual audit and tax declaration, the consequence is that Hong Kong's Company Registry and tax bureau will have a fine.

If the fine is not handled, the government has the right to impose further punishments, such as restricting entry and exit, blacklisting commercial activities and even imposing criminal penalties. If the Hong Kong company is involved in any legal liability or debt relationship before the delisting, the Hong Kong Court has the right to reinstate the Hong Kong company in the Register of companies for the purpose of pursuing its legal and debt liabilities!

2. Take the initiative to apply for cancellation
As long as the following conditions are met:
1.All members of the company agree to be cancelled;
2.The company has never operated or filed for cancellation3No business activities and business dealings within a month;
3.No debts and no other circumstances that cannot be written off under the companies Ordinance.
The Hong Kong company can then file documents with the Hong Kong Companies Registry to begin the cancellation process:
1. The cancellation document signed by the authorized directors and shareholders of the Hong Kong company;
2. The latest annual return and business registration certificate of the Hong Kong company;
3. The date on which the Hong Kong company officially ceases business;

4. recently3Audit report issued within a month (not required for companies that have never operated).

Upon receipt of the cancellation application and confirmation that the Hong Kong company is not in arrears of tax or tax schedule, the Inland Revenue Department will issue a notice of no objection to cancellation and the company will proceed to the next process of cancellation.

In the whole process of the company's cancellation, there will be a period3After a public notice period of months, no party has raised objections to the cancellation of the company. Then the government will issue a public notice announcing the dissolution of the company. Normally, the process of deregistering a Hong Kong company requires approximately6-9In a matter of months.

Therefore, it is not difficult to know that the initiative to apply for the cancellation of the company, can minimize the risk that the company's shareholders and directors may face.

CycloseFocusing on providing company audit, tax declaration, registration, annual inspection, tax planning and other services in Hong Kong, Singapore, Dubai and other regions. Efficient, rigorous, intimate service has been favored by many large state-owned enterprises and listed enterprises.