Whenever one winds up a company in Hong Kong, they must make sure to use the correct forms and procedures. In that regard, the subsequent guide puts into consideration everything you will want to know about filling out and submitting Form IR1263. You will learn about its purpose, who is eligible, the mode of submission, and any extra information here.
Introduction to Form IR1263 and Its Importance
What is the IR1263 Form?
In fact, it is the key form to file with the IRD in the case of deregistration of the company in Hong Kong. This is basically an application for a “Notice of No Objection” from IRD.
IR1263 Form: Purpose in a Hong Kong Company Closure
This form essentially serves the purpose of confirming that the company does not owe any debt to IRD. The “No Objection Notice” is a must to complete the deregistration process of the company.
Legal and Financial Consequences of IR1263 Form Non-Filing
Failure to do so may lead to some delays in the closing of one’s company. Besides, this may also amount to certain legal penalties. Even when such a company has since ceased activity, it may still be considered liable for taxes, penalties, and other financial burdens.
Eligibility Criteria for Filing Form IR1263
Who have to Submit Form IR1263?
Companies incorporated in Hong Kong have to submit the IR1263 form for deregistration of their company. Irrespective of whether a company has big or small business.
Conditions Under Which a Company Must Send in a No Objection Notice
If the company has resolved all tax issues, doesn’t have any unresolved debt, and has planned to be struck off, then it has to obtain an application for “Notice of No Objection.” Additionally, the company is not supposed to be a party in some litigation or under investigation by IRD.
Preconditions for Company Closure in Hong Kong
If the companies want to present the IR1263 form, then they must be sure that:
- All the tax returns are filed and up to date.
- The tax liabilities have been fully settled.
- There are no pending penalties or interest charges with IRD.
Step-by-Step Guide on How to Fill Out Form IR1263
Documents Required for Filing Form IR1263
Generally, you need the following documents while filling out Form IR 1263:
- A copy of Certificate of Incorporation
- The latest Business Registration Certificate
- Tax clearance certificates in case of applicability
- A duly completed tax return form
Step-by-Step Instructions on How to Fill Out Each Section of the Form
1: Details of the company-regarding the company name, registration number, and address where it does its business.
2: Contact Information-contact information for the person who will be in charge of winding up.
3: Tax Liabilities-if a company owes government any amount regarding taxes or if some litigations are going on in courts.
4: Declaration-form to be signed, dated, stating that the information above is accurate.
Some General Mistakes to be Avoided While Filling Out the Form
- Providing inadequate information about taxes.
- Not signing the declaration section.
- Submission of expired or incomplete documents
Where and How to Submit IR1263 Form
How to Submit: Electronically and Physical Submission
You can submit IR1263 form electronically through the eTax portal maintained by the IRD or physically by submitting the duly completed form to the office of the IRD. Both modes of submission will be acceptable though online submissions are faster.
Date of Processing the IR1263 Form
This is usually the form after submission that takes 2 to 4 weeks for IRD to process the IR1263. It may be delays if there are some pending tax matters in the company or incomplete documents.
What to Expect After Filing the Form with the IRD
Upon submission, IRD will check the application. In the event that everything is in order, IRD issues the “Notice of No Objection.” So, the notice may result in the company’s deregistration.
Additional Conditions to Close a Hong Kong Company
After Filing Form IR1263
On the issuance of the “Notice of No Objection”, the company must:
- File the application for deregistration to the Companies Registry.
- Deregister the business and cancel every license that would fall under deregistration.
- Tax Clearance and Deregistration Procedures with IRD
The company is supposed to ensure that all tax submissions are current, paying due taxes before deregistration. The company needs to file the return which may be regarded as the final return, and pay the outstanding balance of tax due and payable.
How to Obtain “Notice of No Objection” from IRD
Where the company has complied with all the requirements, the IRD will issue the “Notice of No Objection”. One of the requirements for deregistration from the Companies Registry is this notice.
Common Problems and Solutions on Striking off Company
Delays in Issuance of Notice of No Objection
There might be delays if the company has outstanding tax matters or when the IRD needs further information. For this, one needs to keep in close contact with the IRD to get such issues resolved as quickly as possible.
How to Clear Outstanding Taxes Before Closure
To avoid delays, ensure to file all tax returns on time, and settle any tax liabilities outstanding before submitting the IR1263 form.
Employee-Related Obligations
Before the company files for deregistration, they have to settle issues such as salaries and severance pay for employees.
Conclusion: Ensuring Smooth Company Closure
Pre-submission Checklist for Form IR1263
- Ensure all tax fillings are done.
- Settle any outstanding tax payments.
- Submit the form with correct information with supporting documents.
- Importance of Timely and Accurate Submission
How FastLane Can Help
FastLane HR offers complete services for sorting out any tax matters related to obtaining the “Notice of No Objection.” Our professionals ensure the smooth processing of the company closure procedure so that you can move ahead with your next venture. Please feel free to call us today for professional support!