A company in the Hong Kong is defined as a business that has had no significant accounting transactions. It is not sufficient that the corporation might not have traded if the company has any accounting transactions whatsoever with the exception of three particular transactions that are permitted. Transactions considered allowable for the company to maintain its dormant company standing are the total received by the company in respect of the initial shares issued to the memorandum of association subscribers, the yearly filing fee payable company’s house and penalties and fines issued by company’s home for non filing of the annual return.
The Term firm has significance different. The distinction being that a non trading company might still have other financial transactions entered into its accounting records that although not related trading could disqualify that business as a dormant company and the particular rules applicable to a dormant company. Annual return hong kong Company might be in a dormant state for several reasons like holding documents or assets or simply protecting a trading name or maybe plans to start a company have been delayed. There is no limitation on how long a company can stay dormant however there are procedures which must be followed to prevent penalties and keep the business on the companies house register. Every company that is dormant needs to maintain a director, at least two officers and company secretary.
The Supervisors are responsible for ensuring that the dormant company submits the yearly return, form 363, annually that contains details of the directors, company secretary, registered office and shareholders. The companies house filing fee of thirty pounds that is reduced to fifteen pounds when the internet filing service is used to submit the return online. In Every year, addition houses a set of accounts. Failure would leave the supervisors open to a criminal prosecution and penalty penalties and may result striking off the business. If the company is required the company to be dissolved by one of two methods determined by whether the business has financial affairs can be arranged for by that the directors. It could have the ability to apply to firm’s house to get a voluntary off and dissolution if the company has no obligations. The liquidation procedures will need to be followed if the business has affairs. The representative office registration, companies house must be submitted to by a company that is dormant consist. For a company the accounts commonly known as the accounting reference date have to be delivered within 10 months of the year end and registered each year if the business has never traded.
The Accounts of a company that was dormant may be filed online. The Accounts of a company that is personal do not need to be audited exemption is claimed and would consist of an abbreviated balance sheet together with the notes if. Profit and loss account and the supervisors report are not required. The corporation will be disqualified from being dormant except for the exemptions if there is been some accounting transactions that would have emerged in a profit and loss account.