In this course · 4 of 5
Course 6
Grow, hire or close
5 lessons · 5 min
4 of 5
- 1What do I need to do when hiring my first employee in Hong Kong?
- 2Can an online store use freelancers or overseas staff, and what changes for the owner?
- 3How do I transfer my sole proprietorship online store to a Hong Kong limited company?
- 4How do I close an online store run as a sole proprietorship in Hong Kong?
- 5How do I deregister or close a Hong Kong limited company that ran an online store?
The short answer
To close a Hong Kong sole proprietorship online store, tell the Inland Revenue Department (IRD) that the business has ceased, file the final tax return, settle staff and suppliers, cancel platform and payment accounts, and keep the records for seven years. Do not just let the business registration lapse.
Closing an unincorporated online store involves several steps.
- Business registration: inform the Business Registration Office that the business has ceased, using the IRD's notice and the process set out on its website. Do not rely on the certificate lapsing.
- Profits tax: the IRD will normally require a final return covering the period to cessation. Stock disposed of on closure and assets sold may have tax effects, so the final accounts need to be worked out carefully. Pay or provide for any tax due.
- Employees: pay wages and any statutory entitlements due on termination, follow the MPF procedures and notify the IRD of employee departures.
- Platforms and payments: withdraw outstanding balances, close seller and gateway accounts, and process outstanding orders and refunds.
- Customers and data: delete or secure personal data that is no longer needed, in line with the data protection principles.
- Records: keep books and records for at least seven years.
A sole proprietor remains personally liable for debts left unpaid.
Legal basis and sources
The law
- Business Registration Ordinance (Cap. 310)
- Inland Revenue Ordinance (Cap. 112), s.51C
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
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