A non-trading company is not officially a dormant company in Hong Kong. The term “dormant” applies to a Hong Kong limited company that, legally has “no significant accounting transactions” during a financial year.

No significant accounting transactions mean no entries in the company’s accounting records. The amount paid for shares when the company is first formed, and a few costs that the company may incur to keep the company registered at Companies Registry, do not count as significant accounting transactions.

Exemptions for Dormant Companies
When a company is declared dormant, there are several exemptions which they may receive. A dormant company is exempted from filing annual returns. Meanwhile since there are no accounting transactions being made, it also do not have to prepare audited financial statements.

However, it is still required to maintain a valid Business Registration Certificate every year.