If the business unfortunately fails and the company has to be wound up, the process itself will also incur a range of costs. The main costs include: 1. “Liquidator’s fees”: you will need to appoint a practising accountant or lawyer as liquidator to handle all the company’s outstanding affairs, and their professional service fees will be a major expense. 2. “Asset disposal costs”: appraisals and commissions may be incurred when liquidating stock and selling assets such as shelving and equipment. 3. “Severance payments”: under the Employment Ordinance, you will need to pay severance pay or long service payments to eligible employees. 4. “Government fees”: fees for filing various documents with the Companies Registry. 5. “Legal and accounting fees”: professional fees for handling debts, tax clearance and other matters. The process may take several months, and costs may reach tens of thousands to hundreds of thousands of Hong Kong dollars.
HONG KONG DRUG LICENSING
What costs will arise if my business fails and I need to wind up and close the company?
A complete explanation of the regulatory basis, Drew Tang’s recommendations and risk alerts. The original material dates from 2025; read it alongside the latest official requirements.
Original guide, 2025 edition: These FAQs are provided for topic-based reference and have not all been individually checked against current rules. Please confirm fees, personnel, renewal, changes and product requirements against the professional in-depth guide for the relevant licence type and the official requirements in force at the time.
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