How to Handle A Hong Kong Dormant Company?

閱讀時間約 9 分鐘
Oftentimes, one will incorporate a company in Hong Kong with the intention of conducting business but end up not doing so, their Hong Kong company becomes unused. As a result of inactivity, their company can enter a dormant state. While they are an incredibly common occurrence in Hong Kong, many individuals are not aware of the responsibilities they have in managing them. In this article, we look to provide insight towards what dormant companies are, how one can be managed and the rules surrounding them.

1. What is a dormant company?
It is a company that does not have any accounting or financial transactions – excluding transactions that arise from the payment of any fees that the Hong Kong company is obligated to pay under a Hong Kong ordinance. For instance, annual business registration fees are still required to be paid.

They are not to be confused with non-trading companies. Non-trading companies will not have any business activities but will still have financial transactions.
2. How to declare a dormant status
To declare a dormant status, a private Hong Kong company should pass and deliver to the Registrar of Companies a special resolution declaring that the company will become dormant.

Upon passing special resolution declaring dormancy, the company will become dormant from:

  • The date of delivery of the special resolution to the Registrar of Companies; or
  • Any later date that is specified in the special resolution

There are no rules that dictate how long a dormant can stay inactive for.
3. Obligations for managing a dormant company
Companies with a dormant status are still obligated to comply with many of the regulations governing Hong Kong companies.
  • Maintain 1 director, 1 shareholder, a company secretary and a registered office;
  • Report any changes of the officers or registered office to the Registrar of Companies
  • Renew its business registration certificate
  • Pay annual business registration fees to the Hong Kong Government; and
  • File Profits Tax Returns as they are issued

However, they also are exempted from complying with many obligations that Hong Kong companies face, specifically:
  • Filing an annual return and holding annual general meetings;
  • Preparing audited financial statements and appointment of auditors.
4. Cessation of a dormant status
To cease a dormant status, the company must pass a special resolution declaring the intention to enter into an accounting transaction. The special resolution must then be delivered to the Registrar of Companies.

A company will then cease to be dormant when:
  • A special resolution declaring the company intends to enter into an accounting transaction is delivered to the Registrar of Companies for registration; or
  • If there is an accounting transaction in relation to the company.
5. What companies are not allowed to claim dormant status
Any company, or subsidiary of that company, cannot claim a dormant status in Hong Kong if they are:
  • A financial institution as per the Banking Ordinance
  • An insurer as per the Insurance Companies Ordinance
  • A corporation licensed under the Securities and Futures Ordinance
  • A Hong Kong company or a registered non-Hong Kong company which
  • Is in a controlling entity relationship with a company which is an intermediary; or
  • Receives or holds in Hong Kong client assets of the intermediary as defined in the Securities Futures Ordinance
  • A Mandatory Provident Fund (“MPF”) Schemes Ordinance trustee
  • A company which falls into any of the above categories during the preceding five years.
Conclusion
The FastLane Group is a licensed Hong Kong company secretary. We understand the statutory obligations that govern how Hong Kong companies can act and operate. We have assisted our clients in respect to all matters of a Hong Kong company – from their incorporation to their dissolution. Please contact the FastLane Group for your enquiries regarding how we can help you manage a company.
為什麼會看到廣告
留言0
查看全部
avatar-img
發表第一個留言支持創作者!
FastLane Group的沙龍 的其他內容
In this article, we look to provide insight regarding the advantages and disadvantages of sole proprietorships and limited companies
In this article, we look to explore what closing a Hong Kong company via voluntary wind up and compulsory (involuntary) wind up entails
In this article, we look to provide guidance towards what the Hong Kong company deregistration process
In this article, we look to provide guidance on how to approach selecting an appropriate Hong Kong registered office address.
In this article, we explain a typical Hong Kong director’s duties and responsibilities and the consequences around failing to adhere to them.
In this article, we will discuss how DIPN 39 will impact treatment of e-commerce businesses and digital assets.
In this article, we look to provide insight regarding the advantages and disadvantages of sole proprietorships and limited companies
In this article, we look to explore what closing a Hong Kong company via voluntary wind up and compulsory (involuntary) wind up entails
In this article, we look to provide guidance towards what the Hong Kong company deregistration process
In this article, we look to provide guidance on how to approach selecting an appropriate Hong Kong registered office address.
In this article, we explain a typical Hong Kong director’s duties and responsibilities and the consequences around failing to adhere to them.
In this article, we will discuss how DIPN 39 will impact treatment of e-commerce businesses and digital assets.
你可能也想看
Google News 追蹤
Thumbnail
這個秋,Chill 嗨嗨!穿搭美美去賞楓,裝備款款去露營⋯⋯你的秋天怎麼過?秋日 To Do List 等你分享! 秋季全站徵文,我們準備了五個創作主題,參賽還有機會獲得「火烤兩用鍋」,一起來看看如何參加吧~
Thumbnail
11/20日NVDA即將公布最新一期的財報, 今天Sell Side的分析師, 開始調高目標價, 市場的股價也開始反應, 未來一週NVDA將重新回到美股市場的焦點, 今天我們要分析NVDA Sell Side怎麼看待這次NVDA的財報預測, 以及實際上Buy Side的倉位及操作, 從
Thumbnail
Hi 大家好,我是Ethan😊 相近大家都知道保濕是皮膚保養中最基本,也是最重要的一步。無論是在畫室裡長時間對著畫布,還是在旅途中面對各種氣候變化,保持皮膚的水分平衡對我來說至關重要。保濕化妝水不僅能迅速為皮膚補水,還能提升後續保養品的吸收效率。 曾經,我的保養程序簡單到只包括清潔和隨意上乳液
Thumbnail
Indicating a gap actually is to sell the problem that you want to solve in research. Here are three easy-to-use sentence patterns.
Like all other businesses — understand the industry, think about your value, find partners and build the channel.
Thumbnail
First, you must be wondering why there is a fake investor?
Thumbnail
I would like to share with you some thoughts from my recent experiences, hope this will be helpful for you. Make relationship. Make friends with
Thumbnail
You could follow National Wages and Productivity Commission, once you click the Region, it will show which city is covered on the right. DAILY MINIMU
Thumbnail
Recently, I got a chance to help a client to increase the efficiency and scheduling meeting time in attending an international conference. The confer
Thumbnail
Jl. H. R. Rasuna Said could be one of the congested streets in Jakarta, because many government, embassy, office is here. Recently, I’m checking 20-y
Thumbnail
According to Wikipedia, there are 4 ethnic groups in Singapore: 1) Chinese 74.3% 2) Malay 13.3% 3) Indian 9.1% 4) Others 3.3% ex. Caucasian In those
Thumbnail
While managing 30+ Facebook group, I need to decide who shall I approve to get into my group. I thought it was an easy job, but I was wrong, the most
Thumbnail
這個秋,Chill 嗨嗨!穿搭美美去賞楓,裝備款款去露營⋯⋯你的秋天怎麼過?秋日 To Do List 等你分享! 秋季全站徵文,我們準備了五個創作主題,參賽還有機會獲得「火烤兩用鍋」,一起來看看如何參加吧~
Thumbnail
11/20日NVDA即將公布最新一期的財報, 今天Sell Side的分析師, 開始調高目標價, 市場的股價也開始反應, 未來一週NVDA將重新回到美股市場的焦點, 今天我們要分析NVDA Sell Side怎麼看待這次NVDA的財報預測, 以及實際上Buy Side的倉位及操作, 從
Thumbnail
Hi 大家好,我是Ethan😊 相近大家都知道保濕是皮膚保養中最基本,也是最重要的一步。無論是在畫室裡長時間對著畫布,還是在旅途中面對各種氣候變化,保持皮膚的水分平衡對我來說至關重要。保濕化妝水不僅能迅速為皮膚補水,還能提升後續保養品的吸收效率。 曾經,我的保養程序簡單到只包括清潔和隨意上乳液
Thumbnail
Indicating a gap actually is to sell the problem that you want to solve in research. Here are three easy-to-use sentence patterns.
Like all other businesses — understand the industry, think about your value, find partners and build the channel.
Thumbnail
First, you must be wondering why there is a fake investor?
Thumbnail
I would like to share with you some thoughts from my recent experiences, hope this will be helpful for you. Make relationship. Make friends with
Thumbnail
You could follow National Wages and Productivity Commission, once you click the Region, it will show which city is covered on the right. DAILY MINIMU
Thumbnail
Recently, I got a chance to help a client to increase the efficiency and scheduling meeting time in attending an international conference. The confer
Thumbnail
Jl. H. R. Rasuna Said could be one of the congested streets in Jakarta, because many government, embassy, office is here. Recently, I’m checking 20-y
Thumbnail
According to Wikipedia, there are 4 ethnic groups in Singapore: 1) Chinese 74.3% 2) Malay 13.3% 3) Indian 9.1% 4) Others 3.3% ex. Caucasian In those
Thumbnail
While managing 30+ Facebook group, I need to decide who shall I approve to get into my group. I thought it was an easy job, but I was wrong, the most