During the operation of a Hong Kong company, some customers want to reduce the registered capital of a Hong Kong company. Under the new regulations of Hong Kong, if a company passes the solvency test, it can reduce the share capital without going through court procedures. Then how should a Hong Kong company operate the capital reduction? Let's take a look
During the operation of a Hong Kong company, some customers want to reduce the registered capital of a Hong Kong company. Under the new regulations of Hong Kong, if a company passes the solvency test, it can reduce the share capital without going through court procedures. Then how should a Hong Kong company operate the capital reduction? Let's take a look:
First, all directors of the company must sign a statement of solvency in support of the reduction of the capital stock, and all shareholders of the company must sign a statement of solvency15Adopt a special resolution within days and on15Deliver the special resolution to the Companies Registry within days for registration;
Secondly, the company shall publish in the gazette a notice stating the particulars of the reduction of its share capital. Must also publish in the ordinary newspaper a notice to the same effect as the notice in the Gazette or give notice in writing to its creditors to the same effect, and such notice/Notice must be published or given within the statutory time limit. The Company shall deliver the form to the Registry for registration on or before the day of publication of the Gazette notice or creditors notice or written notice to creditors, whichever is earlier;
Any creditor or member of the company who disagrees with the special resolution in the course of handling the special resolution may, after the special resolution is passed5Within a week, an application was filed with the court for the resolution to be quashed.
But if no one applies to the court, the company must make a special resolution5In a week (but not later than7Within a week) to deliver to the Commissioner a "Return on Reduction of Share Capital" which will become effective upon registration by the Registrar. Our company has handled capital reduction procedures for some efficient companies, so the Hong Kong company also needs to entrust a professional team to handle the capital reduction with legal and compliant procedures.
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