There are two main ways to dissolve a company in Hong Kong. They are (a) deregistration of private company and (b) winding-up.
If a private company has no outstanding liabilities and fulfills some other requirements, the company may select deregistration to dissolve. The procedure for this kind of dissolution is comparatively simple and related cost is relatively low.
However, the liability (if any) of the officers and members of the company still continues and may be enforced even though the company is dissolved through deregistration. In addition, a deregistered company can be reinstated/re-entered on the register by the Companies Registrar. Once reinstated/re-entered, the company is taken to have continued in existence as if it had not been deregistered.
According to the law in Hong Kong, any person who was a director of a company immediately before its dissolution must ensure that all the books and papers of the company are kept for not less than 5 years after the deregistration.
If a private company is able to fully settle its debts, the company may select Members’ Voluntary Winding up to dissolve.
If a private company is unable to settle its debts in full, the company may select Creditors’ Voluntary Winding up to dissolve. Since the liability of the members in private company is limited, the members of the company are not responsible for the unsettled debts after he has fully settled the amount unpaid on their shares.
The cost involved in voluntary winding up is higher than deregistration and more time is needed for this kind of dissolution. However, company dissolved under winding up cannot be made “revived” on the expiration of two years after the date of dissolution except under rare circumstances. This mode of dissolution therefore provides much more certainty than deregistration.
In addition, books, papers and records of a dissolved company may be disposed in accordance with stipulated procedure. Therefore, voluntary winding up helps many companies in solving their record storage problem.
Our Service In This Area
We provide suitable solution to our customers to dissolve their companies.
Our service include:
- Advice on debt recovery
- Advice on individual bankruptcy matters
- Advice on winding up and insolvency matters
- Company’s voluntary winding up
- Deregistration of private company
- Preparation of statement of affairs