Hong Kong Companies: Dormant Status
04 November, 2016
You have registered a company in Hong Kong and now you need to put the business on hold for some reason or postpone your first operations.
If your company has no significant accounting transaction during a financial year, meaning there are no entries in the company's accounting records, you can register it as a dormant company.
Benefits of Dormant Status
The dormant status will allow your inactive company to be retained at a minimum maintenance cost. Once the company obtains the dormant status, it won't be required to comply with all annual obligations. However, the company must still submit an annual return for the year in which it declares itself to be dormant.
You will have to pass and deliver to the Company Registry in Hong Kong a special resolution declaring that the company will become dormant. You can download Specimens of the special resolutions here. Your company will officially become dormant from the date of delivery of the special resolution to the Registrar or from any later date that is specified in the special resolution.
When you decide to cease the dormant status of your company, you just need to pass and deliver to the Company Registry a special resolution declaring that the company intends to enter into the accounting transactions.
An accounting transaction means any transaction that is required to be entered in the accounting records of a Hong Kong company.
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