While we are usually involved in incorporating companies, this time we are assisting a client with the liquidation of a Hong Kong subsidiary.
The company was established more than 15 years ago as a gateway to Chinese investments and to the Chinese market. Today, however, the group’s presence in China is secured through a wholly foreign-owned local enterprise, while the Hong Kong market no longer requires a dedicated local subsidiary.
In short, the situation has been reversed: Hong Kong, once the entry point into China, is now effectively followed by the Chinese subsidiary itself.
Liquidation in Hong Kong should be a relatively straightforward process, provided that all payables and receivables can be cleared and a fair agreement is reached with the local employees.
