When shareholders plan to terminate the operation of the company, they are usually not very clear about the termination procedures and only adopt a ignoring attitude. Therefore, they may violate relevant laws without knowledge, and in serious cases, they may even be arrested or have an impact on future entry and exit.

Rengang Yongsheng services cover all aspects of company liquidation/deregistration and have accumulated rich project experience, which can assist enterprises in smoothly closing down.

Liquidation of Hong Kong companies

The liquidation of Hong Kong Limited Company can be divided into voluntary liquidation by shareholders, voluntary liquidation by creditors, and compulsory liquidation by the court.

Voluntary liquidation by shareholders

The voluntary liquidation of shareholders must meet the following conditions:

Complete company account books

Obtaining the consent of the majority of shareholders through a special resolution of the shareholders' meeting

The company has the ability to repay its debts

A liquidator must be appointed to oversee and handle the entire liquidation process

Voluntary liquidation by creditors

The voluntary liquidation of creditors must meet the following conditions:

Complete company account books

The company is unable to repay all debts and cannot continue to operate

The company is appointed by creditors as a liquidator, responsible for monitoring and handling the entire liquidation process

The liquidator must be a practicing accountant or lawyer

Statutory Liquidation by Court 

The liquidation proposed by the court is a compulsory liquidation. Regardless of the company itself, its creditors, the Director of the Company Registry or the Director of the Bankruptcy Administration, a request for liquidation can be made. After the liquidation order is issued, the court will appoint a liquidator, and the Director of the Bankruptcy Administration can also serve as a temporary liquidator. The entire process involves multiple meetings of directors, shareholders, and creditors.

Hong Kong company deregistration

According to Article 291 of Chapter 32 of the Hong Kong Companies Law, companies applying for deregistration at the Companies Registry must meet the following conditions:

All shareholders agree

The company has never started operating or ceased operations for at least 3 months before applying for deregistration

There are no outstanding debts, including government license fees and taxes

The company is not a party to any legal proceedings

The company's assets do not include real estate located in Hong Kong

If the company is a holding company, the assets of its subsidiaries do not include real estate located in Hong Kong

Must obtain a written notice of no objection from the Director of the Taxation Bureau

In addition, if anyone objects to the deregistration, they may apply to the court for restoration of registration within 20 years after the deregistration takes effect, and the court may order the Companies Registry to restore the deregistered company to business.