Given the complexities involved, you are strongly advised to engage the services of a professional firm who will handle the closing down of your company in Hong Kong.
A Voluntary Liquidation is decided upon by the shareholders who, at the same time, appoint a liquidator.
If for reason, a liquidator is not appointed by the general meeting, the directors shall apply to the Court for the appointment of a liquidator.
The assets of the company are realised and the proceeds are distributed.
The company’s liabilities must be paid first, any remaining surplus will then be distributed to the shareholders.
The process of closing down a company is referred to as “liquidation” in common terms.
Companies can be liquidated either by “De-registration” or “Winding Up“.
Winding up is the process of appointing a liquidator who will settle the accounts, pay off the company’s debts (if any), liquidate the assets of a company and distribute the surplus assets (if any) to members, ensuring that the company is completely dissolved.
Detailed below are the procedures involved in deregistration and winding up of a Hong Kong company.
Compulsory Liquidation is an insolvent winding up procedure which is generally initiated by company creditors (those who are owed money by the company).