How to Efficiently Deregister a Hong Kong Company for Ningbo Business Registrants? Quick Guide and Key Considerations

How Can Ningbo Company Registrants Efficiently Complete the Deregistration of a Hong Kong Company? A Quick Guide and Key Considerations

With the continuous changes in the global economic environment, more and more mainland Chinese enterprises that have established companies overseas are reevaluating their overseas business structures. For many investors in Ningbo, companies originally registered in Hong Kong for trade and investment convenience may now need to be deregistered due to business adjustments or strategic shifts.

According to recent media reports, since the second half of 2025, due to fluctuations in the international trade landscape and mainland policies encouraging businesses to return home, some companies that previously conducted cross-border operations via Hong Kong entities have accelerated the process of closing down dormant shell companies. As reported by Southern Metropolis Financial Weekly, by the end of the third quarter of 2025, over 13,000 mainland companies registered in Hong Kong had been voluntarily deregistered, with a significant increase in companies from the Yangtze River Delta region.

As a major foreign trade city, Ningbo is home to numerous international businesses, many of which are small and medium-sized enterprises that set up offices in Hong Kong under the Going Global strategy. Now, many of these companies are initiating the deregistration process.

However, due to differences between Hong Kong and mainland China in legal systems and tax frameworks, the deregistration process can be complex. This article offers a practical and efficient guide tailored to Ningbo-based company registrants, based on current trends and operational insights.

1. Understand the Prerequisites for Deregistration

Before officially applying for deregistration, businesses must ensure they meet the following basic conditions

1. No outstanding debts The company must have no unpaid debts, including bank loans or supplier arrears.

2. No ongoing legal proceedings If the company is involved in any unresolved court cases, deregistration cannot proceed.

3. Completed tax obligations The company must submit its final financial statements to the Inland Revenue Department IRD and confirm that all taxes have been paid.

4. No asset transfer disputes Any assets must be legally transferred before deregistration to avoid future disputes.

If the company still has ongoing operations or unsettled financial matters, it is recommended to complete a formal liquidation process before proceeding with deregistration.

2. Choose the Appropriate Deregistration Method

Currently, there are two main ways to deregister a Hong Kong company

1. Voluntary Deregistration Deregistration

This method is suitable for small companies that have not been operating and have no liabilities. It is the simplest and fastest route. Applicants can submit documents online through the one-stop deregistration service. The entire process usually takes around six months.

Required documents include

A deregistration application form NDR1 signed by company directors

A clear statement of the company’s financial status

An Notice of No Objection from the IRD Form N182C

A resolution passed by shareholders

2. Deregistration After Liquidation Winding Up

If the company still holds assets or owes debts, it must undergo a liquidation process before deregistration. There are two types of liquidation Members’ Voluntary Winding Up for solvent companies and Creditors’ Voluntary Winding Up for insolvent companies. This method is more complex and usually requires the assistance of a professional accountant or lawyer.

3. Common Issues and Recommendations

1. Unresolved Bank Accounts Delaying the Process

Many businesses overlook the need to close all bank accounts before deregistration. According to Hong Kong financial regulations, all bank accounts must be closed, and a no outstanding balance certificate must be obtained from the bank. It is advisable to contact the bank early to understand the required documents and processing time.

2. Tax Filing Gaps Leading to Rejection

In recent years, the IRD has tightened its review of deregistration applications. In September 2025, media reports indicated that some companies failed in their deregistration attempts due to missing profit tax filings or unresolved historical tax issues. It is recommended that companies review their past tax records at least six months in advance and, if necessary, engage a professional tax advisor.

3. Disagreements Among Shareholders

If there are multiple shareholders and disagreements exist regarding deregistration, this may slow down the decision-making process. Under the Companies Ordinance, a 75% majority vote is typically required to approve a voluntary winding-up or deregistration. It is advisable to hold a shareholders’ meeting in advance and document the resolution in writing.

4. Recommended Step-by-Step Checklist

Here is a practical checklist for Ningbo business owners seeking to deregister a Hong Kong company

1. Internal Evaluation and Decision-Making

Confirm eligibility for deregistration

Hold a board or shareholders’ meeting and pass a formal resolution

2. Financial and Tax Preparation

Prepare the most recent financial statements

Submit the final tax return to the IRD and obtain the N182C notice

3. Settle External Affairs

Settle all debts and contracts

Close all bank accounts and obtain proof of closure

Terminate employee contracts if applicable

4. Submit the Deregistration Application

Complete and submit Form NDR1

Pay the application fee approximately HKD 1,045

Wait for approval from the Companies Registry

5. Follow-Up and Confirmation

The Companies Registry will publish a deregistration notice in the Gazette

The company will be officially removed from the register three months later

Retain the Certificate of Deregistration and related documents for future reference

5. Consider Engaging a Professional Agency

Although the deregistration process may seem straightforward, the involvement of multiple departments and professional requirements often leads to issues such as missing documents or processing delays. For Ningbo-based business owners who cannot travel to Hong Kong in person, it is advisable to engage a qualified corporate secretary firm or law firm to handle the process on their behalf.

According to First Financial Daily, more than 30% of mainland companies opted for third-party service providers when deregistering their Hong Kong subsidiaries in 2025. This not only improved efficiency but also reduced compliance risks.

Conclusion

In the face of increasing global economic uncertainty, timely adjustment of overseas business structures has become a critical task for enterprise management. For Ningbo-based business owners, efficiently and legally completing the deregistration of a Hong Kong company can help reduce unnecessary maintenance costs and optimize overall resource allocation.

With proper preparation, a clear understanding of the process, and timely professional support, the deregistration of a Hong Kong company can be completed smoothly and successfully.