Annual Return Filing Dates To Take Note of for New Business Owners

Annual Return Filing Dates To Take Note of for New Business Owners | Bestar

Annual Return Filing Dates To Take Note of for New Business Owners

For new business owners in Hong Kong, keeping up with annual filing requirements can feel overwhelming. It's a lot to learn on top of the already tough process of starting a company. Staying compliant is crucial, but it's easy to get lost in the details of deadlines, forms, and fees.

This guide simplifies the essential annual filing requirements for private limited companies in Hong Kong, so you can understand what's needed and avoid costly penalties.

Key Compliance Requirements

Before you get to the filing itself, make sure you're meeting these ongoing obligations for your private limited company:

• Registered Address: You must maintain a local registered address. A P.O. box isn't allowed.

  
  

• Company Officers: You need to have a local company secretary (an individual or entity), a local director (aged 18 or older), and at least one shareholder (aged 18 or older if an individual).

  
  

• Records: You must maintain proper records, including your business registration certificate, Articles of Association, and meeting minutes.

  
  

• Accounting: Keep accurate and detailed accounting records for seven years, including receipts, invoices, and bank statements.

  
  

• Annual General Meeting (AGM): You must hold an AGM within 18 months of incorporation, and then every calendar year after that, with no more than 15 months between meetings. Small companies with only one employee may be exempt.

Any changes to your registered address or the particulars of your directors, secretary, or shareholders must be updated within 15 days of the change.

What to File and Where

In Hong Kong, companies have two main annual filing requirements with different authorities:

• Companies Registry (CR): You must file an Annual Return signed by a director, company secretary, or an authorized representative. This form provides general company information, such as the address of the registered office, shareholders, and directors.

  
  

• Inland Revenue Department (IRD): You must file an Annual Tax Return (also known as a Profits Tax Return) along with your audited accounts.

Deadlines and Penalties

Annual Returns (Companies Registry)

For private limited companies, the deadline to file your annual return is within 42 days after your company's anniversary of incorporation.

• Example: If your company was incorporated on May 1, 2024, your annual return must be filed by June 12, 2025.

If you miss this deadline, you will face escalating registration fees:

Filing Period After Due Date	Penalty Fee
More than 42 days but within 3 months	HK$870
More than 3 months but within 6 months	HK$1,740
More than 6 months but within 9 months	HK$2,610
More than 9 months	HK$3,480

There are no extensions. Failing to comply can lead to prosecution and a maximum fine of HK$50,000, plus an additional daily fine of HK$1,000 for ongoing non-compliance.

Tax Returns (Inland Revenue Department)

The IRD typically sends out tax return notifications on April 1 each year. For newly incorporated companies, the notification is sent around the 18th month after incorporation.

Once you receive the notification, you must file your tax return within one month. Your submission needs to include:

• Your company's balance sheet.

• An auditor's report.

• A profit and loss account.

• Tax computation showing how your profits were calculated.

Getting Help and Staying Compliant

The government provides resources to help companies stay compliant. When you receive your company's Certificate of Incorporation, you'll also get an information pamphlet on compliance. You can also find this on the Companies Registry's website.

Navigating these requirements can be complex, and any incomplete or improperly signed documents can lead to more fines and prosecution. Many business owners choose to work with a corporate secretary or compliance professional to ensure they meet all their obligations on time.

Do you have any questions about specific filing requirements or how to find a corporate secretary?

Contact

Bestar Professional Fees

In addition to the government fees for annual compliance, most business owners in Hong Kong opt to hire professionals to handle the process. Our professional fees for these services can vary widely depending on the size and complexity of your business, and the specific services you require.

Here's a breakdown of the professional fees you can expect:

1. Corporate Secretarial Services

Every company in Hong Kong is required to have a company secretary. Many companies hire a corporate service provider to fulfill this role and handle their annual compliance. These services often come in packages that include:

• Serving as the company secretary: This is a statutory requirement to ensure the company remains compliant.

  
  

• Maintenance of statutory records: Including the register of directors, shareholders, and significant controllers.

  
  

• Filing of the Annual Return (Form NAR1): The professional will prepare and submit this form to the Companies Registry on your behalf.

  
  

• Drafting AGM documents: Preparing the necessary minutes and resolutions for the Annual General Meeting.

The annual fee for these services can range from HK$1,200 to HK$7,740 or more. Bestar offers a basic package that only covers the essentials, which includes non-routine tasks like changes in directors or share allotments for an additional fee.

2. Accounting and Auditing Fees

All limited companies in Hong Kong are required to have their financial statements audited annually. This is a mandatory step before filing the Profits Tax Return with the Inland Revenue Department. The fees for these services are generally the most significant professional costs and are highly dependent on your business's activity and complexity.

Factors that influence accounting and auditing fees include:

• Annual turnover and number of transactions: The more transactions your company has, the more time the accountant and auditor will need to spend.

  
  

• Business nature: A simple service-based company will typically have lower fees than a complex trading company with extensive inventory and foreign transactions.

  
  

• Record-keeping quality: If your company's internal records are well-organized and accurate, the audit process will be more efficient, and fees may be lower.

  
  

For a small to medium-sized business (SME) with low annual turnover (e.g., less than HK$1million), an estimated audit fee can start from around HK$6,000. This can increase significantly for larger companies or those in complex industries.

Summary of Professional Fees

• Corporate Secretarial Fees: Approximately HK1,200−HK7,740 per year for standard annual compliance services.

  
  

• Auditing Fees: Starting from around HK$6,000 for a small company, with costs increasing based on turnover and business complexity.

Get a clear, itemized quote from Bestar to understand exactly what is included in our fees.

How Bestar can Help

Annual Return Filing Dates To Take Note of for New Business Owners

Hiring Bestar for your company's annual compliance in Hong Kong can be a strategic decision that saves you time, reduces risk, and provides peace of mind. While it's possible for a business owner to manage all compliance requirements themselves, the complexity and potential for costly errors often make professional help a worthwhile investment.

Here's how Bestar can assist you:

1. Corporate Secretarial Services

Every limited company in Hong Kong is legally required to appoint a company secretary. This role is a statutory position, not a clerical one. Most business owners, especially those who are new to the market, hire a corporate service provider to fulfill this requirement.

A professional company secretary will:

• Ensure Timely Filing: We will track and manage all critical deadlines, including the 42-day window for filing the Annual Return with the Companies Registry and the submission of the Profits Tax Return to the Inland Revenue Department. This helps you avoid late penalties and fines.

  
  

• Maintain Statutory Records: We are responsible for keeping your company's official registers and statutory books up-to-date and in compliance with the Companies Ordinance. This includes registers of directors, shareholders, and significant controllers.

  
  

• Act as a Liaison: The company secretary serves as the official point of contact between your company and government bodies like the Companies Registry and the IRD. This ensures all official correspondence is handled correctly and on time.

  
  

• Provide Expert Guidance: We can offer advice on corporate governance, statutory requirements, and assist with administrative tasks such as changing a company's name, registered address, or details of directors and shareholders.

  
  

2. Accounting and Auditing Services

In Hong Kong, all limited companies must undergo a mandatory annual audit conducted by a Certified Public Accountant (Practising).

Bestar can help with this process by:

• Preparing Audited Financial Statements: We can handle the preparation of all necessary financial documents, including the balance sheet, profit and loss account, and cash flow statement, ensuring they comply with the Hong Kong Financial Reporting Standards (HKFRS).

  
  

• Conducting the Statutory Audit: An independent auditor will review your company's financial records to ensure they are accurate and reliable. This report is a legal requirement for your tax filing.

  
  

• Managing Tax Filings: Bestar will assist with the computation of assessable profits and prepare and file your Profits Tax Return (PTR) with the IRD. We can also advise on potential tax optimization strategies and apply for exemptions, such as for offshore profits, where applicable.

  
  

3. Comprehensive Support and Peace of Mind

Beyond the specific tasks, Bestar offers an integrated solution that reduces your administrative burden. By outsourcing these functions, you can focus on growing your business without the constant worry of compliance.

The key benefits of hiring Bestar include:

• Risk Mitigation: We have up-to-date knowledge of all relevant laws and regulations, minimizing the risk of non-compliance, which can lead to significant penalties, fines, and even legal action.

  
  

• Time and Resource Efficiency: Instead of spending your own time and resources on complex paperwork, you can delegate these tasks to experts who can complete them accurately and efficiently.

  
  

• Strategic Advice: Bestar offers additional services, such as advisory on company restructuring, corporate governance, and business expansion, providing more value than just basic compliance.

  
  

In short, while professional fees are an additional cost, the value we provide in ensuring legal compliance, preventing fines, and freeing up your time to focus on your core business is often a worthwhile investment.