HK company closure advice

[trumandavies]

Hello all

I have a HK company with no debt or assets, does this need to be closed through the correct channels or can I just let renewals lapse? Director is a nominee company.

Thanks in advance

 

[Sols]

Yes, you can abandon the company.

However, if you don't dissolve the company properly, you risk leaving behind a potential mess of liabilities and, if you have amassed wealth from the company, a potentially difficult to explain Source of Wealth if banks or tax authorities start looking into you in the future.

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This is the probably the answer to your question.

 

[pfser]

trumandavies said:
Hello all

I have a HK company with no debt or assets, does this need to be closed through the correct channels or can I just let renewals lapse? Director is a nominee company.

Thanks in advance
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It's important to note that without proper closure procedures, it may result in negative consequences. For example, the company may be subject to penalties and fines for not filing annual returns, taxes, and other legal requirements, and then it will be much more complicated to close it.

 

[Mike Forman]

The tax authorities will automatically strike off the company from the register after sending you several reminders (which you don't respond).

If you are not a Hong Kong resident and have no possible legal actions you should be ok.

 

[AHK84]

Hi not sure what you decided to do with the company, but if it has a bank account attached to it I would be interested in acquiring it.

 

[intlman]

Having had several companies in HK (and since wound them all down), I would recommend doing it properly. Yes, I know it's a complete ball-ache, but best to do it right.

 

[Mike Forman]

intlman said:
Having had several companies in HK (and since wound them all down), I would recommend doing it properly. Yes, I know it's a complete ball-ache, but best to do it right.
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It is always recommended to do things properly, in the end it's the choice you make depending on your personal risk appetite. We did it on advice of our HK auditor, and they know what they are doing. If you are not a Hong Kong resident there is little to nothing that can happen.