Form IRC3113 notification of cessation of business

Understanding Form IRC3113 Notification of Cessation of Business

When a Hong Kong business stops trading, the Inland Revenue Department (IRD) requires formal notification. The Form IRC3113 notification of cessation of business is the standard document for this purpose. Filing is required for proper tax clearance.

Filing the Form IRC3113

Form IRC3113 is a notification submitted to the Inland Revenue Department under the Business Registration Ordinance (Cap. 310). It serves as formal notice that a business has ceased trading. The form requires the following information:

• Business name and Business Registration Certificate number
• IRD file number (if previously assigned)
• Date of cessation of business
• Reason for cessation (e.g., closure, sale of business, dissolution)
• Final business address
• Contact details of the person submitting the notification

The form is available for download from the IRD website or can be obtained from the . Submit completed forms to the of the Inland Revenue Department.

Cessation of Business Notification Hong Kong: The One-Month Deadline

Section 11 of the Business Registration Ordinance (Cap. 310) requires a business to notify the Commissioner of Inland Revenue of its cessation within one month of the cessation date. This deadline applies to all business structures in Hong Kong, including sole proprietorships, partnerships, and corporations.

The one-month period begins on the actual date the business stops trading. File immediately if the business has already ceased but the notification is outstanding. Late notification may result in a fine of up to HK$5,000 under the Business Registration Ordinance.

IRC3113 Filing Guide: Step-by-Step Process

Follow these steps when preparing and submitting the IRC3113:

Step 1: Confirm the date of cessation. Determine the exact date the business stopped trading. This date must be recorded accurately on the form.

Step 2: Complete the form. Fill in all required fields, including the business name, Business Registration Certificate number, IRD file number, date of cessation, and reason for cessation.

Step 3: Attach supporting documents. If the cessation is due to the sale of the business, include a copy of the sale agreement. If the business is a company that has been dissolved, attach the Certificate of Dissolution from the Companies Registry.

Step 4: Submit the form. Send the completed Form IRC3113 to the either by post or in person. The address is: 4th Floor, Inland Revenue Centre, 5 Concorde Road, Kai Tak, Kowloon, Hong Kong.

Step 5: Retain a copy. Keep a copy of the submitted form for your records.

Notify IRD of Business Closure: Final Tax Return

After notifying the IRD of the cessation, the business must also file a final Profits Tax return. The IRD will issue a Profits Tax return (BIR51 for corporations or BIR52 for persons other than corporations) covering the period from the end of the last assessment year to the date of cessation.

The final tax return must be filed within the time specified on the return, usually one month from the date of issue. Late filing of the final return may result in penalties and additional tax assessments. Prepare final accounts covering the period up to the date of cessation and compute the final profit or loss.

Hong Kong Business Cessation Tax Form: Clearing Tax Liabilities

Form IRC3113 is part of the broader tax clearance process. Once the IRD receives the notification and the final tax return, it will assess any outstanding tax liabilities. The business must settle all Profits Tax due before the IRD will issue a letter confirming that no objection exists to the cessation.

For companies, the IRD may also require a Notice of No Objection (Form IR1263) before the company can be deregistered with the Companies Registry. This notice confirms the IRD has no outstanding tax claims against the company.

Consequences of Failing to File

Failure to submit the Form IRC3113 within one month of cessation can result in:

• A fine under the Business Registration Ordinance (Cap. 310)
• Continued liability for business registration fees until the IRD is notified
• Difficulty in obtaining tax clearance or deregistration of the company
• Potential penalties for failing to file a final Profits Tax return

Practical Considerations

• The date of cessation should be the last day the business actually traded, not the date of any formal dissolution or deregistration.
• If the business was a partnership, all partners should be named on the form, and the notification must be signed by a partner.
• For companies, the notification should be signed by a director or the company secretary.
• If the business has an existing IRD file number for Profits Tax purposes, include this on the form to link the notification to the tax file.

Additional Notes

This process addresses notifying the IRD of business cessation using Form IRC3113. Other related filings, such as applications for a Notice of No Objection for company deregistration or requests for tax clearance, are covered on separate pages (see Form IR1263 and related guides).