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Business De-Registration or alternative?

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  1. #1

    Business De-Registration or alternative?

    Hi everyone,
    I did a search a coupe of times but this topic didn't show up.

    Essentially, I set up my own recruiting business last year - used one of the firms which specialises in this, at a cost of $12k approx. However I was then headhunted myself to a role - now the year is up, what are my options? The firm I'm using said they can close the business down for 10k but is this really necessary? Can I just not pay the business licence? Or what costs are necessary

    Thanks in advance


  2. #2

    Join Date
    Jan 2008
    Posts
    1,966

    I assume it is a limited company? Limited company needs to be wound up and the price quoted of $ 10K is normal. If you continue to keep the company, you will to pay B.R. Certificate fee every year. Also have to fine company returns.
    If you do not want to pay, cancel the B. R. Certificate. Do not file company return. Normally in few years the company registry removes it from the list. However it may not work like that. There is a chance that you may incur penalties for not complying with the company law.


  3. #3

    Join Date
    Apr 2014
    Posts
    54

    If your company is formed under an unlimited company, simply fill in the form IRC 3113 and submit to the Business Registration Dept in Wanchai.
    Here is the link of the form IRC 3113 to download.
    http://www.ird.gov.hk/chi/pdf/irc3113.pdf

    If your company is a limited company :-
    a) and if you declare the company never commence business since its incorporation, no audit account is requred to prepare before the process of deregistration. The deregistration fee is around $2000 (including all government fee)

    b) and if the company starts its business, annaul audit is complusory before deregistration. Annual fee depends on the size and volume of the company activities. After annual audit is done, the company starts the deregistration process.

    shri likes this.

  4. #4

    Join Date
    Mar 2007
    Posts
    13,099
    Quote Originally Posted by Oldtimer:
    ..There is a chance that you may incur penalties for not complying with the company law...
    Its not a chance, its a certainty.

    If you are a HKID holder, you must deregister or you will get hit with very significant penalties for non-filing.

    How do I know? Lets just say I have a friend who got hauled into court....

  5. #5

    Thanks for your replies.

    Yes it is a limited company. So 2k is all I pay if there's never been any business or transactions completed?
    I also have a friend willing to take on the company but he said he wants to take it for free - is this a fair deal?


  6. #6

    Join Date
    Dec 2013
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    Hong Kong
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    Quote Originally Posted by SonicYouth1:
    Thanks for your replies.

    Yes it is a limited company. So 2k is all I pay if there's never been any business or transactions completed?
    I also have a friend willing to take on the company but he said he wants to take it for free - is this a fair deal?
    Giving it to your friend saves you 2k and him about 5k (the cheapest way to get a new company). Whether you think that is fair or not is up to you, but it'll save you a heap of hassle.

  7. #7

    Join Date
    Apr 2014
    Posts
    54

    Win-Win situation. That's is the best if your friend wants to get it. The only cost you need to bear is the stamp duty on share transfer (i.e. 0.2% on share value+$5 for Instrument of Transfer, minimum is $7) if you prepare the docs by yourself. If you don't know how to do it, you need to pay $800-$1000 for the set of share transfer documents.


  8. #8

    Join Date
    Aug 2014
    Location
    Hong Kong
    Posts
    7

    Hello everyone. I assume this company is a Limited Company because of its formation cost, and I hope that its renewal deadline is not yet reached.

    While you're looking for friends to accept this company, you may contact the service provider who helped incorporation a year ago to see if she's interested in taking over yours as a ready-made company (or named as shelf company) for reselling to others. Then, you will be free from government fee as well as the afford to complete the de-registration.


  9. #9

    Well, thanks everyone for your input

    I do have an update - my colleague didn't want to buy the company after all, so now I'm left with the choice of reregistration but the company I'm dealing with has quoted me $9k. Previous posters had said $2k, but how do I go about this? There's been no transactions at all in the business


  10. #10

    Bump - any ideas?


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