To ensure the companies in Hong Kong are compliant with their obligations, they must adhere to annual filing requirements, specifically the submission of their Annual Returns. While addressing your Annual Returns is not difficult, special attention must be given to avoid any submission deadlines and the fines / penalties associated with them.
In this article, we will talk about what Annual Returns are, what you need to know about them, and how a Company Secretary can help you address these obligations.
What You Will Learn:
2. What Information is Disclosed in an Annual Return?
3. When do I have to Submit my Annual Return?
4. What Happens if I Forget to Submit my Annual Return or has a Late Delivery?
1. What is an Annual Return?
Annual Returns are also known as a form NAR1. It discloses to the Hong Kong Companies Registry a company’s most important particulars, such as their company name, registered address, details of the directors and company secretary etc.
Through the Annual Returns, the Hong Kong Companies Registry will examine the operation of the company to determine whether it can continue to run legally.
All business owners should submit their Annual Return to Company Registry on time, otherwise the company may be subject to fines and penalties. After the Annual Return is delivered to CR, it will become the public records.
2. What Information is Disclosed in an Annual Return?
The following should be disclosed in an Annual Return:
3. When do I have to Submit my Annual Return?
The deadline for a company to submit their Annual Return is dependent on what type of company they are.
- Private company: Within 42 days (including Sundays and public holidays) after the anniversary of the date of the company’s incorporation
- Public company: For companies whose financial year begins on or after 3 Mar 2014, the deadline will be within 42 days after the company’s return date. Return date will be 6 months after the end of the company’s accounting references period
- Guarantee company: For the company which financial year begins on or after 3 Mar 2014, the deadline will be within 42 days after the company’s return date. Return date will be 9 months after the end of the company’s accounting references period
4. What Happens if I Forget to Submit my Annual Return or has a Late Delivery?
Oftentimes, companies will be late in the filing of their Annual Return, or in some instances, forget to submit it altogether! For a Hong Kong private company, the registration fee payable for the late delivery of Annual Return is as follows:
| If the Annual Return is delivered: | HK$ |
| More than 42 days after but within 3 months after the company’s return date | 870 |
| More than 3 months after but within 6 months after the company’s return date | 1,740 |
| More than 6 months after but within 6 months after the company’s return date | 2,610 |
| More than 9 months after the company’s return date | 3,480 |
The company’s return date is also the anniversary of the date of the Hong Kong company’s incorporation in a year. Furthermore, if a Hong Kong company fails to comply with the provision, the company and every responsible person of the company will be liable to prosecution and, if convicted, default fines.
The maximum penalty is HK$50,000 for each breach and, in the case of a continuing offence, a daily default fine of HK$1,000 will be imposed.
5. How can a Company Secretary Help?
The FastLane Group provides professional company secretary services, including Annual Return filing and submission services. As we are familiar with Hong Kong company’s law and regulation, we are able to help you navigate the world of compliance so that you can focus more on growing your business!
Feel free to reach out to the FastLane Group for assistance!