Restore company to register in Hong Kong can be struck off from the Companies Register due to failure to file annual returns, on the ground of voluntary deregistration, among other reasons. However, in specific circumstances, the company may apply for restoration to the register. It is a process more colloquially known as “restoring a company to the register,” which may allow a business to reinstate its legal status and activities. In this article, we take you through the process involved, the restoration of a company to the register fee, and what applications are required.
What is Company Restoration in Hong Kong?
Company restoration means the reinstatement of a company struck off or deregistered from the Companies Register. A company may be struck off due to failure to file annual returns, failure to pay any fee, or in case a written application has been made to strike the company off. However, if need be, a company may seek restoration to the register to resume legal standing.
Restore company to register in Hong Kong is very crucial especially in cases where the company has unpaid liabilities to be paid or if there are other business deals that must be conducted or further litigation that warrants the reinstatement of the company.
Understanding Company Restoration in Hong Kong: Key Facts Explained
Application to restore a company to the register
There are two methods by which a company may be restored to the register in Hong Kong:
Administrative Restitution: Where the Companies Registry has struck off a company either due to failure to file annual returns or for failure to pay annual fees, then such a company may apply to the Registrar of Companies for its reinstatement upon fulfillment of certain conditions.
This is the kind of restoration that involves making an application to the Restore company to register in Hong Kong Courts for the restoration of an organization to the register. Normally, this avenue is explored when the organization was struck off the register for more grave reasons or when the period for administrative restoration has expired.
How to restore a company to the register?
The restoration process in Hong Kong for a company depends upon the nature of the restoration procedure sought. The broad steps that are generally followed by different types are as under:
Administrative Restoration
- Eligibility Check: The first step is to check your company’s eligibility to apply for administrative restoration. The striking off must have been done by the Registrar of Companies, while its dissolution must not be older than 20 years.
- Clear Outstanding Obligations: Before the application for restoration of a company to the register is made, a company should, amongst others, clear all outstanding obligations in respect of annual returns, fees, and penalties outstanding against its name.
- Application Submission: After clearing all outstanding obligations of the company, an application for administrative restoration is submitted to the Registrar of Companies, supported by necessary documents to that effect, which may include proof of payment of outstanding fees.
- Approval: When the Registrar is satisfied with the application, he will restore the company to the register; it will then be again vested with legal status.
Restoration by Court Order
- Legal Consultation: For cases where the situation is a bit more complicated or was deregulated beyond 20 years, restoration by a court order will be considered. Avail the services of a legal consultant who can help in filing the proper petition before the courts restore company to register in Hong Kong.
- Filing of a court petition : A petition shall be filed in court on the grounds for the restoration of the company. It may be due to settlement of claims, incompleteness of pending business activities, or disputes, to name some.
- Attend Court Hearing: Upon filing the petition, a court hearing will be scheduled. If the court is satisfied with the grounds for restoration, it will issue an order to restore the company to the register.
- Comply with Court Orders: Once the court makes the order of restoration, the company must file a copy of that order to the Registrar of Companies for restoration.
Steps to Restore a Company to the Register in Hong Kong
Restoration Cost to the Register of a Company
The cost for the restoration of a company to the register in Hong Kong is generally variable; this, however, depends mainly on the applicable restoration procedure based on the real situation that the company faces. Costs are described, more or less appropriately, below.
- Administrative Restoration Costs: This includes clearing all outstanding annual returns and related penalties. The amount is dependent on the number of years that have lapsed from filing and making the payments on time. Normally, administrative restoration costs range from HKD 5,000 to HKD 15,000.
- Court Order Restoration Cost: This involves more involvement and incorporates court costs. The cost of restoring a company to the register by court order can range from HKD 20,000 to HKD 50,000, depending on the complexity of the case and fees of one’s legal advisor.
- Professional Fees: Whichever route you are taking to restore the company-administrative or through the court-order, it is often advisable to hire legal or professional advisors, which further includes an additional cost.
Reinstating a company to the register in Hong Kong
Restoration of a company to the register becomes necessary in many such instances:
- Settlement of Liabilities: When the company has outstanding financial liabilities or obligations, then restoration is required legally to settle these issues.
- Restarting Business: Companies could reopen their businesses in case the opportunities again arise or when the financial sets get better.
- Legal Actions: In some cases, there is a legal action that must be brought about by or against the company, and restoration to the register is necessary in order to give it legal standing.
Guide to Reinstating a Company to the Register in Hong Kong
Conclusion
The restoration of a company to the restore company to register in Hong Kong by One IBC Hong Kong could be a very crucial step for businesses that seek to resume their operations or settle outstanding matters. In every case, whether by administrative or court order, obligations are to be settled, applications filed, and the necessary fees paid. The cost associated with restoring a company to the register will depend on the particular circumstances of a company. It is advisable to consult legal or professional advisors to make the process of restoration smooth.
If you need help with the application for restoration of a company to the register or any advice about the cost of restoring a company to the register, then it is best that you consult a professional. This would avoid any complications which may arise during the reinstatement process.
