Shareholders are usually not familiar with the related formalities when they plan to terminate the business, so this may possibly result in the breach of relevant laws due to ignorance, and if the infractions are severe, they could lead to arrest or impact future exit and entry of Hong Kong.

WKL's services cover all sectors in company liquidation and deregistration, and with extensive knowledge and experience, we can help our clients to terminate their business successfully through our professional services.

Hong Kong Company Liquidation
Hong Kong Company Liquidation can be divided into Voluntary Liquidation by Shareholders or Creditors, and Statutory Liquidation by the Court.

• Voluntary Liquidation by Shareholders

Voluntary Liquidation by Shareholders shall be conditional in the following:

• Complete account book of company
  
• Majority consent from shareholders through extraordinary resolution passed at meetings of shareholders
  
• Solvent company
  
• Appointed liquidator to monitor and handle the whole process of liquidation


• Voluntary Liquidation by Creditors

Voluntary Liquidation by Creditors shall be conditional in the following:

• Complete account book of company
  
• Insolvent company that cannot continue operation
  
• Liquidator, who must be a certified public accountant or solicitor, appointed by creditors to monitor and handle the whole process of liquidation
  
• Statutory Liquidation by Court

Liquidation petitioned by the court is a statutory liquidation. The company itself, its creditors, the Company Registrar and the Official Receiver can be petitioned for liquidation. After the order of liquidation is issued, the court will delegate a liquidator. The Official Receiver can also act as temporary liquidator. The whole liquidation process will involve many meetings of directors, shareholders and creditors.

Hong Kong Company Deregistration
Under Section 750 of the Companies Ordinance (Cap. 622) of the Laws of Hong Kong, a company applying for deregistration with Companies Registry must meet the following conditions:

• Consent by all shareholders


• No longer running or operating business, or business terminated for more than three months from the date of application for deregistration


• No outstanding indebtedness, including governmental license fee and tax


• With written Notice of No Objection issued by the Commissioner of Inland Revenue

In addition, if someone has an objection to this deregistration, he/she can file application for re-registration with the court within 20 years from the effective date of deregistration, when the court shall order the Companies Registry to resume business of the deregistered company.