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Should I close my company? Abandon? Sell as a shelf company?

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  1. #21

    Join Date
    Apr 2003
    Location
    Hong Kong
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    3,988
    Quote Originally Posted by polsmith:
    Thanks. I am not in Hong Kong though, cant go to admiralty...

    My company is set to renew BR in September 23rd 2019. Do I need to renew BR, Registered address and Company secretary before filing the closing notice form?
    No, you should close while BR is still current. If you wait too long you'll have to pay the BR again

  2. #22

    Join Date
    Nov 2007
    Location
    Wanchai
    Posts
    5,063
    Quote Originally Posted by polsmith:
    Hi Trebor / everyone,

    I am facing the same issue. My HK company has been inactive for 2 years.
    Now I'm being asked to renew my business license and file NAR1 (do I need to do that in order to close my company?)
    Seems I should also obtain no objection from tax department, and not sure what else.

    Do you know any local accounting company that would do this for me?
    My accounting company is charging 6,225 HKD for Deregistration + 2,930 for Business Registration renewal, so about 9,000 HKD plus I am afraid more charges will follow. I think that is too much.

    Cheers,
    As per my previous post. The set fees for clousre (assuming your accounts are audited and tax returns filed up to date) is HKD 270 for the IRD Notice of No Objection and HKD 470 for the De-registration application to the CR.

    The BR fee this year is subsidised at HKD 250 (usually HKD 2,250) so your accounting company is definitely charging you too much for that. The fee for de-registration will include their admin time no doubt. However it is two simple forms so definitely a little excessive.

    If the IRD know you are de-registering they usually waive the BR fee for the coming year as well.
    bbchris likes this.

  3. #23

    Hi everyone

    I am in exactly the same situation. I have a company which has never traded.

    The costs to audit it every year are very high, and if I ever did begin trading with it it would be very small scale so I suspect the accountancy and foreign exchange transfer fees would probably outweigh any tax savings. So I want to close it.

    My existing CPA has quoted me 16,350 HKD to close it down. This is broken down as follows:

    9,500 HKD Audit for the period from 1 Apr 2017 to 31March 2019 (date of cessation of business) 24 months audit
    400 HKD Disbursement
    500 HKD AML
    1,500 HKD Act as Company Secretary from 19 Jun 2019to 18 Jun 2020
    1,500 HKD Registered Office from 19 Jun 2019 to 18Jun 2020
    700 HKD Submit NAR1 with government fee
    250 HKD BR fee for 2019-2020
    2,000 Deregistration fee
    16,350 HKD Total

    This seems a huge amount of money to simply close a company down.

    I paid him 7,990 HKD in January to file annual returns for 2018 and 2019 and 'renew of BR for 2019' (2,550 HKD).

    Can anyone recommend a more cost effective route? Can I simply file the forms Trebor mentioned above (remotely)? Or will I be required to file audits? And if so can anyone recommend a more cost effective CPA? (Perhaps by PM as is mentioned in other threads)?

    Thank you in advance!

    All the best

    Simon


  4. #24

    Join Date
    Nov 2007
    Location
    Wanchai
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    5,063

    Pretty sure i answered these questions earlier in the thread.

    The fees for Registered office and Co Sec are reasonable, in fact I would say they are all reasonable as their mark up on the govt fees is not huge and people cant be expected to work for free.

    The audit fee is also not overly expensive.

    Paxbritannia likes this.