We are often approached by entrepreneurs who have set up their HK limited company, but it has been a while, perhaps even years, and they have not commenced any business yet. Usually, the following misconceptions arise out of this situation, the owner might think:
- “My company is ‘dormant’ so I do not need to comply with some basic requirements”;
- “If I officially register as dormant I will not need to comply with some basic requirements”; or
- “If I deregister I can simply proceed to dissolve my company and will not need to meet basic requirements.”
All those statements are untrue, in fact, they couldn’t be further from the truth. Just check out our posts Non-Trading Company, Dormant & Deregistration, and Deregistration Quiz: Are You Ready? How To? And you’ll see that there are quite a few requirements that you will still need to attend to. Meanwhile, for a quick overview of what is still required to be done you can check out our summary below. But note that this is only a basic comparison, you are highly recommended to read our other articles to gain a better understanding of the specifics.
Note by “Non-Trading Company” we mean a company that is not operating, while a “” means you must comply on a regular basis. For details as to how often each requirement needs to be attended to and estimated cost of obtaining assistance to handle them take a look at our post Can You Afford To Incorporate AND Maintain An HK Company?