How Are Dormant Companies Required to File Tax Returns?

Dormant companies in Hong Kong still have ongoing tax and statutory obligations, depending on their status under the Companies Ordinance.

If a company is dormant only in practice, it must still:

• Prepare audited financial statements to support its Profits Tax Return.
• File a Profits Tax Return if one is issued.
• Renew its Business Registration annually.

If a company has formally declared dormancy under the Companies Ordinance by passing a special resolution and filing a statutory declaration with the Companies Registry:

• Audited financial statements and Annual Returns are exempted during the dormant period.
• Business Registration must still be renewed.
• A Profits Tax Return must still be filed if issued by the IRD.

No accounting transactions are allowed during the dormant period. If dormancy takes effect partway through a financial period, audited accounts are required up to the effective dormancy date.