March is the Peak Filing Period for Hong Kong Company Annual Returns!
Check your company's date of incorporation!!
Hong Kong Company Annual Return
In Hong Kong, the Business Registration Certificate (BR) has a validity of only one year. Therefore, it must be renewed periodically at the Inland Revenue Department one year after the company's incorporation.
Additionally, the Companies Registry requires the submission of an Annual Return (NAR1) after the company's anniversary, detailing the company's status in the previous year, including the number of shareholders, shareholder names, shareholding ratios, and operational status.
(For example, if a Hong Kong company was incorporated in April, the annual return must be done by April of the following year.)
In simple terms, it involves dealing with two government departments: the Inland Revenue Department and the Companies Registry, to renew the Business Registration Certificate (BR) and submit the Annual Return (NAR1).
Two Annual Return Forms
The Companies Registry's
Annual Return (NAR1)
The Inland Revenue Department's Business Registration Certificate (BR)
Important Note: Annual Return ≠ Audit
Many people mistakenly think the annual return is the same as the tax audit?
Incorrect!
Three Major Impacts of
Overdue Annual Returns:
The longer the delay, the higher the penalties incurred. Significant penalties may result in a court summons from the Hong Kong courts. The court may prosecute the company's directors and shareholders according to relevant clauses of the Companies Ordinance(Penalty amounts can be referenced in the chart below; both the Inland Revenue Department and the Companies Registry impose penalties). If the delay is extremely severe, a court appearance may be required.
If the BR(Business registration certificate fine) is not renewed within the specified time, a fine of HKD 300 is required.
If the NAR1 is overdue more than 42 days, fines will be imposed.
42 days＜Overdue Time＜3 months: 870HKD
3 months＜Overdue Time＜6 months: 870*2=1740HKD
6 months＜Overdue Time＜9 months: 870*3=2610HKD
Exceeding 9 months: 870*4=3480HKD
Overdue annual returns will result in the company being blacklisted. In severe cases, the company may be forcibly deregistered, and its bank accounts frozen.
Affects the credibility of directors and shareholders, potentially impacting future business dealings in Hong Kong or travel. It may also reduce the success rate when attempting to open new bank accounts.
Documents Required
① Business Registration Certificate
② Certificate of Incorporation
③ NC1 form (for newly registered companies) or the previous year's Annual Return
Processing Time
It is recommended to handle it one month in advance.
(For example, if incorporated on January 1, 2025, due on December 31, 2025, arrange the filing by December 1, 2025. If the annual return is not filed by January 30, 2026, penalties will be incurred.)
Processing Cycle
5-7 working days
Prepare for the annual Return of your Hong Kong company in advance, which will be more reliable and reassuring. Let HACOS handle everything for you throughout the process!
HACOS always strive to provide our clients with more high-quality, efficient and considerate services, covering China visas, tax-planning, incorporation, financial consulting, global shipping, intellectual property, foreign trade services, legal consultation, etc.
