For Hong Kong private limited company, at time of economic downturn, personal reason, or founder has accident; instead of wind-up the whole business, temporary suspension of business is also an available option, which is to apply and declare the company dormant.
Benefits of applying the Company Dormant
Company applied to become a dormant company are exempted from Annual Return filing and requirement of carrying out audits of its accounts.
Also, if the company holds certain intelligence properties, assets and/or already established with certain reputable brand names, maintaining the company at dormant status first, then take good time to find a buyer without selling the business in a hurry become a feasible option.
Conditions to apply the Company Dormant
There are several conditions that have to bear in mind before applying the Company Dormant: