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Company Deregistration Process

  1. #11

    Join Date
    Jul 2017
    Posts
    8
    Quote Originally Posted by jobin
    Take all your money from Company bank accounts, except HK$100. Then simply stop all communication, esp paying any fees, with HK Govt regarding company. After some time, Company Registry will seize all the known assets ($100) from the bank account, and close and eventually delist your company.
    If you wish to restart business in HK, i suggest using a different company name.
    That’s the best thing I’ve heard yet. Thanks Jobin

  2. #12

    Join Date
    Nov 2014
    Posts
    323
    Quote Originally Posted by Ktobiasson
    Hello, I’m hoping someone can help me here. I have a company in Hong Kong, but I live elsewhere. I have a virtual office with Jumpstart Business Centre. We made all sales to Canada. I have been trying to close/deregister the company for a year and a half. I learned that IRD wanted to check into the offshore profits tax claim and I provided tons of information on multiple occasions and they recently sent a letter saying that our offshore profits tax was legitimate (thank god I thought, is it almost over?? Um, no!). I assumed that we would be able to deregister now, but instead I just keep getting bills from Jumpstart and now Jumpstart is asking me to pay for some new requirement called “Keeping of Significant Controllers Register” (HK$500 for filing, HK$500 for appointing them as a designated representative, HK$750 for filing 3 entries).. Do we have to pay this even though we don’t have any activity in our business for over a year?? I feel like I have been getting extorted over the past year. I’ve had to pay for a business registration for a business that I don’t even want to have registered anymore, for secretarial services, virtual office, mail forwarding, etc... I’ve done everything that IRD has required from us, but I’m exhausted of getting more bills and getting bad news such as not being able to close the company down because IRD wants to check this or that.. I can’t really be expected to keep paying all these bills without any promise of the company being deregistered, can I? I think this is crazy. I just keep saying, ok, I’ll pay that because it looks like we’re almost at the finish line and then I live the same nightmare over and over again.. is there any light at the end of this tunnel?? Please help

    Thanks in advance for any help, suggestions, etc.

    Cheers

    K
    I just went through this recently.

    The significant shareholders register is something you don't need to file as you just keep it on hand. There's an example on the government website and it's very simple for most people.

    Took me 4-6 months before I received the notice of no objection from IRD. They approved me within 2 weeks - I actually called them to check and was told that I was approved and was waiting on the relevant department to send me a letter. Then I waited 5 months and they sent me the notice a week ago. It is supposed to be sent after 2X business days but it seems they don't care about deadlines. I took the notice and went to the government office in admiralty and submitted the paperwork and cheque. The clerk told me it'll be 6-9 months to process if I remember correctly.

  3. #13

    Join Date
    Jul 2017
    Posts
    8
    Quote Originally Posted by Viktri
    I just went through this recently.

    The significant shareholders register is something you don't need to file as you just keep it on hand. There's an example on the government website and it's very simple for most people.

    Took me 4-6 months before I received the notice of no objection from IRD. They approved me within 2 weeks - I actually called them to check and was told that I was approved and was waiting on the relevant department to send me a letter. Then I waited 5 months and they sent me the notice a week ago. It is supposed to be sent after 2X business days but it seems they don't care about deadlines. I took the notice and went to the government office in admiralty and submitted the paperwork and cheque. The clerk told me it'll be 6-9 months to process if I remember correctly.

    Ok, that’s helpful. I recently sent IRD an email to ask if we had the no objection status already and they told me that they had sent the letter to my virtual office provider 2.5 weeks ago. Which makes me think that the virtual office provider (Jumpstart) wanted me to pay for the service before I knew about the notice of no objection because they just forward me all my mail. From what I understand, we don’t need to provide the SCR now that we have the letter of no objection.

    Anyhow, I want all to know that this has been a very uncomfortable process. Starting the company up was straight forward enough, but the tax/audit system in HK seems prehistoric. IRD approved every tax year, but you get audited every year, which seems a bit much. IRD left a note each year saying that the offshore profits tax claim could be reviewed in the future. When we decided to deregister the company, they decided to put us under investigation and asked us for so much info of each and every sale that was made overseas (who was the salesman, what was his relationship to the client, where did the sale take place, if it was by email, where was the salesman, did the company have any overseas offices, if so, where? and if the company wasn’t paying for lease, why?, etc.... the list is so long) and wanted to have proof of our travel records over the years that we were in business. When I supplied everything they asked for, they then asked for more information, when I provided that info, they then asked for even more info. It has been overwhelming, but I’m glad it’s almost over. But I want everyone who wants to start up a company in HK and who is not a resident there to know that it is not a cake walk by any stretch of the imagination. And if you are successful and do everything by the book as far as offshore profits tax claims are concerned, they will still give you the run around and put you under the spot light.. Just want you to know what I didn’t. I would have never started the company if I knew it would have taken up this much time and if I knew that I was to be put under investigation even after doing everything correctly. It was very unfair and overwhelming.

    Anyhow, take care all and thanks for helping out.

  4. #14

    Join Date
    Nov 2014
    Posts
    323
    Quote Originally Posted by Ktobiasson
    Ok, that’s helpful. I recently sent IRD an email to ask if we had the no objection status already and they told me that they had sent the letter to my virtual office provider 2.5 weeks ago. Which makes me think that the virtual office provider (Jumpstart) wanted me to pay for the service before I knew about the notice of no objection because they just forward me all my mail. From what I understand, we don’t need to provide the SCR now that we have the letter of no objection.

    Anyhow, I want all to know that this has been a very uncomfortable process. Starting the company up was straight forward enough, but the tax/audit system in HK seems prehistoric. IRD approved every tax year, but you get audited every year, which seems a bit much. IRD left a note each year saying that the offshore profits tax claim could be reviewed in the future. When we decided to deregister the company, they decided to put us under investigation and asked us for so much info of each and every sale that was made overseas (who was the salesman, what was his relationship to the client, where did the sale take place, if it was by email, where was the salesman, did the company have any overseas offices, if so, where? and if the company wasn’t paying for lease, why?, etc.... the list is so long) and wanted to have proof of our travel records over the years that we were in business. When I supplied everything they asked for, they then asked for more information, when I provided that info, they then asked for even more info. It has been overwhelming, but I’m glad it’s almost over. But I want everyone who wants to start up a company in HK and who is not a resident there to know that it is not a cake walk by any stretch of the imagination. And if you are successful and do everything by the book as far as offshore profits tax claims are concerned, they will still give you the run around and put you under the spot light.. Just want you to know what I didn’t. I would have never started the company if I knew it would have taken up this much time and if I knew that I was to be put under investigation even after doing everything correctly. It was very unfair and overwhelming.

    Anyhow, take care all and thanks for helping out.
    I wouldn't worry about the SCR unless your HK company is owned by a BVI.

    I agree that the IRD is a fossil. I think it's important to keep a cool head and be patient. I actually didn't get asked anything about my sales or customers.

    I also don't recommend HK companies. The audit requirement was a pain in the butt, the SCR is new pain, and I hate the need for a company secretary. Going forward will be using either Seychelles or Canadian company.

  5. #15

    Join Date
    Mar 2018
    Posts
    5

    About closing all bank accounts in HK and walking out with no further action

    I am now in 2019 responding questions for offshore profits. I know one day I will close this company in HK, but I will not go through all their burdens. I will just close all my bank accounts in HK and walk out. I am not committing any crime, just leaving the registration of the company rolling and unpaid for as ever as it takes.


  6. #16

    Join Date
    Jul 2011
    Posts
    662
    Quote Originally Posted by hhservices
    I am not committing any crime
    Unfortunately, you are.

    If a company fails to comply with the requirements of the Companies Ordinance, the company and every responsible person of the company, including every director, company secretary and manager of the company, are liable to prosecution and, if convicted, default fines.
    https://www.cr.gov.hk/en/publications/docs/25.pdf

  7. #17

    Join Date
    Mar 2018
    Posts
    5

    Thanks

    My friend opened a company in HK 4 years ago because it was so easy, but then realized that he was getting threats form his secretary as to the crimes he was committing for not doing audits, not paying government fees, not renewing the company, etc... He was amazed that he even had to pay a bunch of money and work to close this company who opened in 5 minutes from Taiwan.
    This is plain simple a government hustle and my friend block his secretary and never did nothing to this. I can understand why. He never hear from this again and he´s fine.
    I think that I will follow his steps one day: easy and rightful way vs hard and unfair way.


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