Maintaining a Hong Kong Company
All businesses, of whatever nature are required to make various types of filings and/or pay various fees, duties or levies either on an annual basis or whenever it enters into a transaction or simply on an annual basis. The various laws governing the various requirements to pay and make filings or returns are very strict and failure to meet specified deadlines may well result in penalties, fines or even prosecution from the various regulating bodies.
Such need to maintain your business and make appropriate filings and payments in a timely manner is a tedious job and the omission to make such filings and payments can result in financial loss, which can be significant, and more importantly, takes your time away from what you do best, "running your business and making money!"
That is why we are here to take this burden away from you and ensure that all your business's compliance needs are properly taken care of. We set out below a few of the commonly required annual compliance requirements and fees that need to be paid. Note that the following is not intended to be an exhaustive list.
All businesses, whether incorporated or unincorporated
Incorporated Entities
Warning: The above list is not intended to be an exhaustive list of compliance requirements or fees payable.
Such need to maintain your business and make appropriate filings and payments in a timely manner is a tedious job and the omission to make such filings and payments can result in financial loss, which can be significant, and more importantly, takes your time away from what you do best, "running your business and making money!"
That is why we are here to take this burden away from you and ensure that all your business's compliance needs are properly taken care of. We set out below a few of the commonly required annual compliance requirements and fees that need to be paid. Note that the following is not intended to be an exhaustive list.
All businesses, whether incorporated or unincorporated
- Any entity operating a business Hong Kong, whether incorporated or unincorporated, is required to obtain a Business Registration
Certificate under the Business Registration Ordinance, from the Business Registration Office, commencing from the time of incorporation or establishment. The Business Registration Office is a division of the Inland Revenue Department.
- On each anniversary of the business, each business must renew their Business Registration Certificate. Failure to renew may result in a penalty being charged or being prosecuted by the Business Registration Office.
- Preparation of annual audited accounts.
- Filing of a Profits Tax Return to the Inland Revenue Department, usually in May or June of each year.
- Filing of Employer's Return in April of each year.
- Filing return to the Census and Statistics Department regarding employment statistics.
Incorporated Entities
- All entities incorporated or registered as an Overseas Company under the Companies Ordinance is required to file an Annual Return to the Companies Registry setting out basic information about it, including, but without limitation to, who its officers and shareholders are and changes in the shareholding in during the previous year.
- In addition to annual filings, on each occasion there are changes to the Company, such as officers or their details, charges created
against the company's assets, etc. a filing is required to be made within such prescribed time schedules set. Failing to do so may result in penalties being payable as well as daily fines for each day such filing remain outstanding.
- On the transfer of shares in a Hong Kong limited liability company or a company that has its register of members situated in Hong Kong, Hong Kong Stamp Duty is chargeable at the rate of 0.2% of the consideration or the net asset value of the company, whichever is the higher, and payable by the transferor and transferee. The duty is payable within 2 days of the transfer if made in Hong Kong or within 30 days if made outside of Hong Kong.
- A charge made against an asset of a company incorporated under the Companies Ordinance must be registered within 30 days of its creation, otherwise, it may not be filed unless an order of the Court is first obtained.
- Preparation of resolutions and minutes for an Annual General Meeting of the shareholders.
Warning: The above list is not intended to be an exhaustive list of compliance requirements or fees payable.