According to section 5 of the Companies Ordinance, a private company may pass and deliver to the Registrar of Companies for registration a special resolution (please see the two specimens, i.e. A1 or A2 for reference) declaring that the company will become dormant.
If a company passed a special resolution (please see the two specimens, i.e. A1 or A2 for reference) declaring that the company will become dormant, the company is a dormant company as from:
- the date of delivery of the special resolution to the Registrar of Companies; OR
- any later date that is specified in the special resolution.
Under section 663 of the Companies Ordinance, the requirement to deliver annual return for registration does not apply to a dormant company. However, a private company is still required to deliver an annual return for the year in which it declares itself to be dormant if the effective date on which the company becomes dormant falls after the 42nd day after the anniversary of its date of incorporation.
According to section 5 of the Companies Ordinance, a dormant company ceases to be dormant if it passes and delivers to the Registrar of Companies for registration a special resolution (please see the two specimens, i.e. B1 or B2 for reference) declaring that the company intends to enter into an accounting transaction.
A dormant company will cease to be dormant :
- if a special resolution (please see the two specimens, i.e. B1 or B2 for reference) declaring that the company intends to enter into an accounting transaction is delivered to the Registrar of Companies for registration; OR
- if there is an accounting transaction in relation to the company.
According to section 2 of the Companies Ordinance, "accounting transaction (會計交易)", in relation to a company, means a transaction that is required by section 373 to be entered in the company’s accounting records, excluding a transaction arising from the payment of any fee that the company is required by an Ordinance to pay.
Please seek independent professional advice on whether a transaction falls within the definition of "accounting transaction" in section 2 of the Companies Ordinance.
A private company which has ceased to be dormant will be required to deliver an annual return for the year in which it ceased to be dormant if the effective date on which it ceased to be dormant falls on or before the 42nd day after the anniversary of its date of incorporation.
If a dormant company enters into an accounting transaction, the company ceases to be a dormant company. The exemption from delivery of annual return ceases to have effect on and after the date of the accounting transaction.