Very often it is mentioned that over 50% of all new businesses fail in their very first year after launch. Anything saying is that at least about 30% of all new businesses fail during the first two years, before they could take off to the next level. For a business to take off, it is almost as hard as launching a rocket into the space without the required resources most of the time. The concept is similar when it is applied to Hong Kong’s local businesses. It is not a shame to fail in business in Hong Kong, as long as the entrepreneur has tried everything and tried hard.
In Hong Kong, company deregistration is a process to dissolve a non functional and/or solvent private company or a company limited by guarantee. HK company deregistration is more convenient and less expensive when an entrepreneur attempts to dissolve a company or business in HK. Company deregistration is not the same as the liquidation procedure of a company.
In order to deregister a business, all the members of the company must agree to the deregistration. This is an obvious fact before your application. The company (to be deregistered) should not have had business operations carried out in the past three months. Hopefully, the company should have carried no outstanding liabilities and should not have been owing any money to any vendors, customers, or employees. The company must not be in the state of having any legal proceedings at the court. The company to go through deregistration in HK must obtain a Notice of No Objection to a Company being Deregistered (or usually known as simply the Notice of No Objection) from the Commissioner of Inland Revenue Department in Hong Kong.
To make the process easily, the company should make sure it has no asset that consists of immovable property which is located in Hong Kong. Another version is this is to check against whether the company is a holding company of another business. If it is a holding company, again make sure the company possesses no asset that consists of immovable property which is located in HK.
Before completing closing down the business, the entrepreneur should carefully check against the Employment Ordinance of Hong Kong. The entrepreneur has too many matters to sort out when closing a business, but still he should deal honestly with his employees. The Employment Ordinance is one very important document of legislation governing conditions of employment in Hong Kong. This legislation provides the fundamental protection to all employees. The protection includes payment of salaries, restrictions on salary deductions, provision of statutory holidays, and more.
Keyword: company deregistration