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closing my HK company

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  1. #11

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    Quote Originally Posted by selematon:
    what default fine do i risk ?
    it seems like the potential fine might be less expensive than all the fees they make me go through anyway

    (i potentially gonna have to pay around HK$ 21.000 for all of this, when the tax i owe to the governement (8% of my revenues) are only around $HK 4000
    Please see preceding post - the director was fined HK$24,000 for failing to ensure a company filed its annual returns for 2 years and failing to have a registered office in HK. Likely there would have been legal expenses on top of that. It also means the director has a record which may or may not be of concern depending on your job and whether or not you ever want to borrow money in the future (yes, banks will look at things like this).

  2. #12

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    OP, what kind of company did you opened in the first place? And why shut it down so soon after?


  3. #13

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    The audit fee is fairly reasonable. Imagine how many audits each firm has to do every year when it is compulsory for HK companies. Imagine then why they would spend some of their time working on your company for basically nothing when they are not short of business. It's not worth their time.

    The Profits tax return will be dead easy however and you should be able to do it yourself. If you havent even completed a full year of business i do not think there is a requirement to have the Company audited?

    The De-registration process can take up to 6 months once it has been approved by the IRD and CR. So you may have to get the annual returns filed. I think you can probably get away with submitting management accounts to IRD when requesting the notice of no objection given that there has only been a few months activity.

    Edit - As an after thought you might be able to sell this company if it has a bank account and only one transaction which would make all of the above fairly mute. It's a fairly clean company already. Sure any buyer will still need to KYC with the bank but it will be a much more attractive propostion if the account is already open as it will speed things up.

    Paxbritannia, shri and gigglinggal like this.

  4. #14

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    Thanks for the inputs, how to proceed for selling a company ?
    i should specify that i'm abroad and can't come to HK.


  5. #15

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    Quote Originally Posted by selematon:
    Thanks for the inputs, how to proceed for selling a company ?
    i should specify that i'm abroad and can't come to HK.
    That i can't help you with. Not sure what channels to go through.

  6. #16

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    Quote Originally Posted by selematon:
    Thanks for the inputs, how to proceed for selling a company ?
    i should specify that i'm abroad and can't come to HK.
    Selling a private company is not easy - buyers will be cautious because of the risk of undisclosed liabilities, especially when there are no audited accounts to hand. If it were me, I'd pay the extra to get a newly incorporated company to avoid that risk.
    gigglinggal likes this.

  7. #17

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    Quote Originally Posted by selematon:
    i should specify that i'm abroad and can't come to HK.
    What will you do with the company bank account and which bank is it with in HK?

  8. #18

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    May 2020
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    If you don't know whether you need to do audit, you can submit the 'Notice of No Objection to a Company Being Deregistered' to IRD first and see what outstanding documents they require.

    selematon likes this.

  9. #19

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    Quote Originally Posted by traineeinvestor:
    Selling a private company is not easy - buyers will be cautious because of the risk of undisclosed liabilities, especially when there are no audited accounts to hand. If it were me, I'd pay the extra to get a newly incorporated company to avoid that risk.
    Usually i'd agree but if he has a corporate account with statement proof and only one transaction then it might be of interest as there wont be any liabilities most likely. Anyway any buyer would have to be diligent.
    selematon likes this.

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