Hong Kong company deregistration cost and how long it takes

Hong Kong Company Deregistration Cost

The total Hong Kong company deregistration cost turns on one decision: whether the company handles the process internally or engages a professional firm. The government filing fee for Form NDR1 is HK$420. The larger expense is the professional fees for the final audit and preparation of the final profits tax return. A straightforward deregistration for a solvent company with no outstanding liabilities costs between HK$5,000 and HK$15,000 when using a corporate services provider, inclusive of the government fee and professional charges. Deregistration is significantly cheaper than liquidation, which runs from HK$20,000 upwards for a simple members' voluntary liquidation.

Cost to Deregister a Hong Kong Company

The cost to deregister a Hong Kong company breaks into three components: the government filing fee, the professional fees for the final audit and tax return, and incidental costs such as cancellation of the business registration certificate.

The Companies Registry charges a deregistration fee of HK$420 when the applicant files Form NDR1. This is a fixed government fee. It does not change regardless of the company's size or complexity. No other government fees are payable during the deregistration process.

The professional fees cover the work that must be completed before the application can be submitted. A licensed accountant or audit firm must prepare the final audited financial statements and the final profits tax return. For a company that has been dormant or has had minimal transactions, the final audit cost may be as low as HK$3,000 to HK$5,000. For a company with active trading, the fee will be higher. The auditor must verify the final period's transactions and ensure all outstanding liabilities are settled.

Some firms include the cost of applying to the Commissioner of Inland Revenue for a notice of no objection within their package. Others charge a separate fee of HK$1,000 to HK$3,000 for handling the IRD correspondence. The total professional package for a simple deregistration ranges from HK$5,000 to HK$15,000.

Hong Kong Deregistration Timeline

The Hong Kong deregistration timeline from the date of filing Form NDR1 to the company being dissolved is approximately six to eight months. This period is dictated by statutory waiting periods and the processing time of two government departments.

The timeline runs as follows:

The longest variable is the IRD review. The Commissioner of Inland Revenue must confirm that the company has no outstanding tax liabilities, no unresolved tax returns, and no pending objections. If the company's tax affairs are straightforward, the notice of no objection may issue within one month. If the IRD requires further information, the review can extend to three months or longer.

After the Companies Registry receives the notice of no objection and the completed Form NDR1, it publishes the first gazette notice. A 3 months objection period then runs. If no objection is received, the Registrar publishes a second gazette notice and the company is dissolved on the date of that publication.

Deregistration Fee Hong Kong

The deregistration fee Hong Kong companies pay to the government is HK$420. This is the fee for filing Form NDR1 under the Companies Ordinance (Cap. 622). The fee is payable at the time of submission and is non-refundable even if the application is rejected or withdrawn.

No other government fees are payable during the deregistration process. The cancellation of the business registration certificate with the Inland Revenue Department does not attract a separate fee. Any outstanding business registration fees must be paid before the IRD will issue the notice of no objection.

The HK$420 fee compares favourably with the government fees for liquidation. A members' voluntary liquidation requires a declaration of solvency and the appointment of a liquidator, and the government fees for filing the relevant documents are higher. The low deregistration fee is one reason deregistration is the preferred route for a solvent company with no remaining assets or liabilities.

How Long Does Deregistration Take Hong Kong

The answer to how long does deregistration take Hong Kong is six to eight months from the date the company files the application with the Companies Registry. The process cannot be accelerated. The statutory objection period of three months is fixed.

Factors that may extend the timeline include:

• Outstanding tax returns. If the company has not filed all its profits tax returns, the IRD will require those returns to be submitted and processed before it issues the notice of no objection. This can add several months.
• Unresolved liabilities. Any outstanding liabilities, whether to the government, creditors or employees, must be settled before the application can proceed. The IRD will check for unpaid taxes, penalties and business registration fees.
• Incomplete final audit. The final audit and final return must be completed before the IRD will consider the application. Disorganised records mean a longer audit.
• IRD queries. The Commissioner of Inland Revenue may raise queries about the company's tax affairs. Each round of correspondence adds time.

A company that has been dormant and has filed all returns on time can expect the shorter end of the range. A company that has been trading actively and has complex tax affairs should budget for the full eight months.

The Companies Registry will not accept Form NDR1 until the company has obtained the notice of no objection from the Commissioner of Inland Revenue. The IRD review runs before the Companies Registry timeline begins. The total elapsed time from starting the final audit to dissolution is therefore longer than the six to eight months quoted for the Companies Registry stage alone. Allow nine to twelve months for the entire process from start to finish.