As a business grows, there is a tendency for its corporate structure to grow with it. Over time, as the business matures, that structure may need to change to be more responsive to the ongoing needs of the business.
Every so often it is useful to stand back and review the corporate structure, to rationalise it and to remove unnecessary, and sometimes redundant, entities within the group. These may be in Hong Kong or in offshore jurisdictions such as the BVI or Cayman Islands.
As well as simplifying the group structure this process has the benefit of reducing unnecessary costs, particularly those that may be associated with increasingly burdensome compliance obligations.
This is most often achieved through the use of the members’ voluntary liquidation (MVL) procedure.
To assist you and your clients, we have prepared a guide which walks through the Hong Kong process from beginning to end – the procedures in the BVI and Cayman Islands are not that much different. We hope that you will find the guide helpful, but if you have any questions please do not hesitate to contact us and we will be happy to answer them.
A Procedural Guide to Members’ Voluntary Liquidation in Hong Kong
Briscoe Wong Advisory