Apart from basic compliance requirements, Hong Kong companies must file annual returns, whether local incorporations or foreign companies; every company must file an annual return with the Hong Kong companies registry. The annual return is filed within 42 days after one year of the company incorporation date.
If you are wondering to learn about the annual filing requirements and other related details, you have landed at the right place. You can continue to read and learn more!
Although Hong Kong is one of the most business-friendly countries, it has set up certain rules and regulations and is mandatory for private limited companies. One is filling out annual tax returns at the limited company registry.
Annual filing or annual return is a statutory requirement for all the registered businesses in Hong Kong to operate and maintain their legal status for a period. All the registered companies are directed to file the annual returns to the companies registry and inland revenue department, which are government authorities for incorporation and taxation before the prescribed time.
Maintaining Company transaction and Preparation for financial statements:
A Hong Kong company must maintain its financial statements, accounting records, and transaction. Company or business owners need to prepare their financial statements as per the financial reporting standards of Hong Kong for a financial year.
It is advisable to perform bookkeeping every month if your company has more than ten numbers of transactions. The financial statement of a company consists of the following:
Generally, it is the Hong Kong limited company financial statement signed by a certified public accountant who is an auditor that prepares the company’s auditor’s report. The audited financial statements give a professionally verified overview of the company’s financial situation to concern and interested individuals.
The annual general meeting is a meeting of all the company’s stakeholders once a year. Whether it is a single-member company or comprised of many members and shareholders, all must participate in this meeting. Although it is no longer compulsory if certain requirements are met that are:
The company members can utilize the written resolution for decision-making and send copies of all related documents to all shareholders by the circulation date.
They can also use the incorporated subsidiary option. The only director is the only shareholder, or all the members can pass a No AGM resolution that stops holding an AGM annually.
As per law, every private company in Hong Kong must file its annual tax return with IRG after doing annual tax computation.
The Hong Kong companies ordinance has made it mandatory for all the locally incorporated private limited companies to file their annual tax return with the companies registry.
The company filing annual returns must include all the company’s information such as company office address, shareholders, company share capital, company directors, company secretary, and other required information.
The annual filing requirements include signing the company annual return by the director, company secretary, manager, or authorized representative. Moreover, if a company has filed for bankruptcy or applied for dormant company status, then that company is exempted from fulfilling such compliance under the Hong Kong company ordinance.
The annual company return is filed once in every calendar year. Although there are no time limitations for the newly incorporated company once a year is complete after its incorporation date, that particular Hong Kong company must file its return within 42 days.
Moreover, there is no requirement to file the company’s financial accounts with the Hong Kong company’s registry while filing the company’s annual return.
Suppose any company fails to comply with file returns compliance in the allowed period. In that case, this means that the company is subjected to a higher registration fee due to late Submission. Also, your company’s responsible person is liable to a fine or substantially higher registration fee.
The fine amount will increase with each passing month; for example, if an annual return is filed after the 42 days in the three months’ time, the fine amount will be HKD 870.
Similarly, if the company’s annual return is late by more than three months from the grace period of 42 days but remains within six months, the fine of HK 1740 will be imposed.
If the company annual return is filed after six months of the grace period of 42 days but remains within nine months, the fine will be 2610 hong kong dollars.
Last but not least, a fine of HK $3480 is imposed if the returns are delivered after more than nine months of the return date.
Here is a list of documents required to file an annual return of Hong Kong private limited company.
An original copy of the duly signed annual return filing form. A copy of the Hong Kong certificate of incorporation a copy of the company business certificate.
Another document that you need while filing company returns is a copy of merger and acquisition documents and with that company incorporation papers. The last document required is ID cards of company directors, company shareholders, and company secretaries.
There are two ways to submit a return, either by using a hard copy or by submitting by filling up an electronic form.
If you are planning to submit a hard copy of the annual return, then you can file your annual return either by post or by a person; make sure to deposit the correct annual registration fee.
Make sure to submit your annual returns at companies registry, 14th floor, Queensway government offices, 66 Queensway Hong Kong.
Please try to reach within a prescribed period of companies registry service hours, pay your dues in a form, or payable a cheque to companies registry.
Another way to submit your company annual return is by filing electronically using the 24 hours companies registry portal. You can visit the e-registry, fulfill all the filing requirements, and file your company annual return.
For doing and operating a business in Hong Kong, directors of the company must comply with the annual filing requirements. If they fail to comply with the statutory compliance requirements, it may result in fines or prosecution.