To suspend or cease your business activities in Hong Kong, you have two options: dormancy or deregistration. Both are relatively straightforward and inexpensive but do not achieve the same goal.
Dormancy: The purpose of the "dormancy" is to suspend your activity temporarily, with the aim of resuming it later. The procedure is as follows:
Once the company is declared dormant, it shall not have any accounting transactions. This will exempt the company from accounting obligations (i.e. preparation of Management Accounts and Audit Report), as well as from some yearly reporting (i.e. Annual Return and Profits Tax Return). It can be re-activated easily, from the moment it runs new transactions.
Deregistration: The purpose of the “deregistration” is to permanently cease the activity of the company. As long it can prove it has no outstanding debt and has paid all its taxes, it can simply apply for deregistration with the Companies Registry. The procedure is as follows:
Within 3 months from the date of issuance of the NNO, the company shall apply for deregistration with the Companies Registry. The whole deregistration procedure generally takes around 9 months.
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Looking for assistance to pause or cease your business? Wondering about your options? Feel free to reach out to us via the form below.