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Hong Kong Company Maintenance Costs

  • Writer: a22162
    a22162
  • 19 minutes ago
  • 4 min read

How much does it cost to maintain a Hong Kong company?


Hong Kong Company Maintenance Costs


The cost to maintain a Hong Kong company varies but generally falls into two categories: fixed and variable costs. The fixed annual costs for a simple company are around HKD 9,000 (~$1,150 USD), while total costs, including variable fees like accounting and auditing, can range from HKD 15,000 to over HKD 25,000 (~$1,900 to ~$3,200 USD), depending on the company's size and activity.


Fixed Annual Costs 🗓️


These are the mandatory government and professional service fees required to keep your company in good standing.


  • Business Registration Fee: All companies in Hong Kong must have a valid Business Registration Certificate. The fee is currently HKD 2,200 for a one-year certificate.


  • Annual Return Filing Fee: This is a statutory fee paid to the Companies Registry to file the company's annual return (Form NAR1). The fee is a minimal HKD 105 if filed on time. Late filings incur significant penalties, ranging from HKD 870 to HKD 3,480.


  • Company Secretary and Registered Office Address: A Hong Kong company is legally required to have a local company secretary and a registered office address in Hong Kong. Most companies hire a professional service provider for these roles. Fees for these services range from HKD 2,500 to HKD 5,000 annually.


Variable Annual Costs 💸


These costs depend on your company's business activities, revenue, and number of transactions. They can significantly increase your total maintenance expenses.


  • Bookkeeping and Accounting: You're legally required to keep proper books and records for at least seven years. The cost depends on the volume of transactions. A small company with minimal transactions might pay as little as HKD 5,000 annually, while larger companies will pay more.


  • Statutory Audit and Tax Filing: All Hong Kong companies must have their financial statements audited by a certified public accountant (CPA). The auditor's report and tax computation must be submitted with the annual Profits Tax Return. Audit fees start around HKD 5,000 for a dormant company and can easily exceed HKD 10,000 or more for an active business.


  • Employer's Return: If you have employees (including a director), you must file an Employer's Return. While there's no government fee for this, Bestar will charge a fee, ranging from HKD 500 to HKD 1,500, to prepare and file it.


It's important to note that penalties for late filing or non-compliance can be severe, so engaging a reliable professional service provider is a good way to ensure all deadlines are met.


How Bestar can Help

Hong Kong Company Maintenance Costs


Hiring a professional service provider for your Hong Kong company maintenance is a common and highly recommended practice. Bestar goes far beyond simple administrative tasks and play a crucial role in ensuring your company's compliance and smooth operation.


Here's a breakdown of how Bestar can help:


1. Ensuring Legal Compliance and Avoiding Penalties


This is arguably the most important function of a professional service provider. Hong Kong's Companies Ordinance is complex, with strict deadlines for various filings. Failure to comply can lead to significant fines, legal action, and even the suspension of your business registration. A professional service will:


  • Act as your Company Secretary: This is a legal requirement for all Hong Kong companies. The company secretary must be a Hong Kong resident or a Hong Kong-registered corporate body. We act as the primary point of contact with government agencies.


  • Manage all statutory deadlines: We will track and ensure the timely filing of your annual returns, business registration renewals, and any other required documents.


  • Keep your records up-to-date: We are responsible for maintaining your company's statutory books, including registers of directors, shareholders, and charges, and updating them with any changes.


2. Expert Guidance and Strategic Advice


Bestar has in-depth knowledge of Hong Kong's corporate landscape and evolving regulations. We can offer valuable advice that helps you navigate complex situations and make informed decisions. This includes:


  • Advising on corporate governance: We can help you establish and maintain good governance practices, which is crucial for building trust with investors and partners.


  • Assisting with structural changes: We can guide you through processes like changes in directors or shareholders, share allotments, and amendments to your company's articles of association.


  • Providing a local point of contact: For foreign business owners, having a professional in Hong Kong provides a local link and helps you navigate cultural and regulatory nuances.


3. Reducing Administrative Burden and Saving Time


By outsourcing your company's administrative and compliance tasks, you free up your own time and resources to focus on your core business activities. A professional service can handle a wide range of tasks, including:


  • Handling official correspondence: We will manage communication with government bodies like the Companies Registry and the Inland Revenue Department.


  • Organizing meetings: We can help with the logistics of board and shareholder meetings, including preparing agendas and drafting meeting minutes.


  • Providing a registered office address: This is a mandatory requirement, and Bestar can offer a credible business address for your company.


In essence, hiring Bestar for your Hong Kong company is a strategic decision that ensures compliance, mitigates risk, and allows you to focus on growing your business with the confidence that your administrative and legal obligations are being met.





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