A strike-off company, in general, means removal of the name from the Companies Registry, which actually includes the dissolution of a company in Hong Kong. This can take place either upon application by the company itself.
A voluntary strike-off is a situation where a company is not operating, has no liabilities, and meets the prerequisites laid down by the Companies Ordinance. It is usually applied by owners of businesses that want to dissolve their business in an easy and inexpensive way. However, the company must comply with the legal requirements such as informing the creditors and paying off the outstanding debts before it can be struck off.
On the other hand, involuntary strike-off occurs when a company does not adhere to statutory requirements such as filing annual returns or keeping a registered address. It may be removed by the Companies Registry, following which the entity is considered dissolved.
While a struck-off company is no longer in operation, it can still be held liable for any legal consequences, such as claims by creditors or fines due to unpaid taxes. Businesses should carefully consider their situation and seek professional advice to navigate this process effectively.
One IBC Hong Kong provides guidance and support for companies undergoing strike-offs or considering restoration after dissolution. Their expertise ensures compliance with all regulatory requirements, minimizing risks during this critical transition.