Nationwide Urgent Strike-off of Hong Kong Companies Are You Ready? A Comprehensive Guide to the Process and Key Points!

Urgent Nationwide Service for Deregistering Hong Kong Companies Are You Ready? A Comprehensive Guide

In recent years, with increasing global economic uncertainty and ongoing adjustments in commercial policies and tax regulations between mainland China and Hong Kong, more and more businesses registered in Hong Kong are reconsidering whether to continue maintaining their operations in the region. Particularly after 2025, many business owners have found that keeping a non-operational Hong Kong company is no longer cost-effective-and may even pose a series of potential risks.

According to a recent report by a financial magazine, under the influence of the Financial Action Task Force FATF tightening its oversight of offshore companies, the Hong Kong Monetary Authority and the Inland Revenue Department have intensified their scrutiny of long-dormant and unreported companies. Authorities have begun initiating clean-up procedures for businesses that have not filed taxes or submitted audit reports for years. Some companies have even been placed directly on blacklists, affecting their principals’ ability to invest or open bank accounts in Hong Kong in the future.

Against this backdrop, urgent nationwide deregistration services for Hong Kong companies have become a new focus for many business service intermediaries. Whether accounting firms, business service providers, or law firms, they are all offering one-stop deregistration solutions to help business owners complete the process efficiently and in compliance with regulations.

Why Should You Pay Attention to the Deregistration of Hong Kong Companies Now?

1. Rising Maintenance Costs and Increased Burden

Although Hong Kong offers a simple registration process and low tax rates, once a company is established, it must undergo annual audits, accounting, and tax reporting. Even if the company is not actively operating, it must still file a nil return. In recent years, with stricter auditing standards and tighter scrutiny by accounting firms, annual maintenance costs for even small dormant companies have been steadily rising. According to a well-known accounting firm’s 2025 pricing list, the annual audit and nil return filing for a non-operational Hong Kong company now costs over RMB 3,500.

2. Tighter Regulation and Growing Risks

Since 2025, the Hong Kong Inland Revenue Department, in collaboration with customs and the Monetary Authority, has launched a special campaign targeting dormant companies. Multiple media outlets have reported cases where companies were hit with heavy fines due to years of non-compliance, which in turn affected their actual controllers’ bank loan approvals and visa applications on the mainland. If a company is found guilty of false reporting or providing inaccurate information, it could even face criminal liability.

3. Increasingly Robust Cross-border Data Sharing

In recent years, cooperation between mainland China and Hong Kong on tax information exchange has continued to deepen. Under the Common Reporting Standard CRS promoted by the Organization for Economic Co-operation and Development OECD, multiple jurisdictions-including Hong Kong-have implemented automatic exchange of financial account information. This means that if you are a mainland resident holding a Hong Kong company bank account, your financial transactions may be reported to mainland tax authorities. Any unusual transactions could trigger further scrutiny.

Basic Procedure for Deregistering a Hong Kong Company

For companies that have decided to cease operations, timely and legal deregistration is the safest option. Typically, the process includes the following steps

1. Confirm the Company’s Status

This includes checking whether there are outstanding tax obligations, unresolved debt disputes, or remaining bank balances. If the company still holds assets or liabilities, these must be settled before proceeding with deregistration.

2. Apply for a Letter of No Objection from the Inland Revenue Department

This is the most critical step in the process. The company must submit a deregistration application to the Hong Kong Inland Revenue Department and ensure there are no unpaid taxes or pending audits in the past three years. If the department has no objection, it will issue a Letter of No Objection.

3. Submit the Deregistration Application to the Companies Registry

Once approval from the Inland Revenue Department is obtained, the company can formally submit the deregistration documents to the Companies Registry CR. Normally, the entire process takes 4-6 months, during which two public notices will be published in the Gazette. If no objections are raised, the company will be officially deregistered.

Why Is Urgent Deregistration Service Gaining Popularity?

Facing increasingly stringent regulatory conditions, many business owners want to terminate their association with Hong Kong companies as soon as possible. However, the traditional deregistration process can be cumbersome and time-consuming, especially during the waiting period for Inland Revenue Department approval, which often takes several months.

To address this, some professional service providers now offer urgent deregistration services, promising to complete the core steps within two months and assisting clients in coordinating with relevant authorities. These services offer several key advantages

Full-process agency services, saving business owners from having to handle procedures themselves.

Familiarity with the latest policy changes, helping to avoid common pitfalls.

Assistance in resolving historical issues, such as back-filing annual returns or settling overdue fines.

Provision of legal advice to ensure the deregistration process is lawful and compliant.

However, it should be noted that not all companies are eligible for urgent deregistration. If a company has serious tax arrears, unresolved debt disputes, or is under judicial investigation, it must go through a formal liquidation process to complete its exit.

How to Determine Whether You Need to Deregister Your Hong Kong Company

The following situations suggest that you should consider deregistration as soon as possible

The company has never been actively operated since its establishment.

It has been unused for years with no plans to resume operations.

The annual maintenance cost exceeds expected benefits.

You are concerned about potential liability due to future regulatory tightening.

You are planning to expand overseas and need to restructure your business entities.

Conversely, if the company is still in use-for purposes such as foreign exchange collection, overseas investment, or brand protection-it should continue to fulfill its reporting obligations in accordance with the law to avoid being placed on any adverse record lists.

Conclusion

In an era of increasingly strict global regulation, corporate compliance has become an essential topic for every business. For companies that have already exited-or are planning to exit-the Hong Kong market, timely understanding and proper execution of the deregistration process can not only help avoid potential risks but also provide a clearer foundation for future business decisions. Whether you choose to handle the process yourself or entrust it to a professional agency, the key is to act early. Don’t let a dormant company turn into an unexpected source of trouble.