How do I dissolve a company limited by guarantee?
How do I dissolve a company limited by guarantee?
In the voluntary winding up process, a resolution from the shareholders of the company is normally required to place the company into voluntary liquidation. This article will cover off the process for a company limited by guarantee, which is often also a community interest company.
How do I close my limited company in Hong Kong?
There are two ways of closing down a company – by company deregistration and winding up. Company deregistration is an inexpensive procedure of closing down defunct solvent companies, and most companies in Hong Kong are closed down by this procedure.
How can I liquidate a Hong Kong company?
Voluntary Liquidation by Shareholders
- Account book of company is complete.
- Consent is obtained from a majority of shareholders through extraordinary resolution passed at meetings of shareholders.
- The company is solvent.
- A liquidator must be appointed to monitor and handle the whole process of liquidation.
Can a limited company go into liquidation?
You can choose to liquidate your limited company (also called ‘winding up’ a company). The company will not exist once it’s been removed (‘struck off’) from the companies register at Companies House. When you liquidate a company, its assets are used to pay off its debts. Any money left goes to shareholders.
How much does it cost to deregister a company?
There are no costs involved. Another option is that the client does not pay the annual return and then CIPC will automatically deregister the company for them.
How long does it take to close a Hong Kong company?
In short, to have a Hong Kong company officially struck off the Companies Registry takes about 6 months in total. The time required is long since most of the processing time is taken up by the Inland Revenue Department and the Companies Registry.
What is the difference between liquidation and winding up?
In relation to company closure, some people confuse the term winding up with liquidation. In short, liquidation is just selling the business assets and turning them to cash or cash equivalents to fulfill claims of the company’s creditors.
Can a wound up company be reinstated?
A company which is struck off can be reinstated by the Court. Any person or business owner who is not satisfied with the decision of the Registrar to strike off the company may apply to the court to reinstate the company’s name into the Register within seven years from the date it was struck off.
Can directors be personally liable in a limited company?
Simply put, limited liability is a layer of protection placed between the company and its individual directors. This means the directors cannot be held personally responsible if the company is unable to pay its debts.
What is the process of liquidation in Hong Kong?
Although both the procedures will result in the dissolution of a company, the processes they entail are significantly different. Deregistration is a relatively simple, inexpensive and quick procedure for dissolving defunct private companies who meet certain specific requirements.
Who are the members of a Hong Kong company limited by guarantee?
Structure of a Hong Kong company limited by guarantee The basic requirements of a company limited by guarantee include: One member, two individual directors and one company secretary The member can be a natural person or corporation
How to dissolve a company in Hong Kong?
Subject to specified exceptions, a defunct solvent private Hong Kong company or company limited by guarantee can apply for deregistration pursuant to Section 750 of the Companies Ordinance (Cap 622). This is generally considered in the market as a rather simple, less expensive and fast method to dissolve companies.
What is a limited company in Hong Kong?
A limited company is a separate legal entity that is established and registered under Hong Kong Companies Ordinance.