Hong Kong Annual Return (NAR1)
Each of the Hong Kong companies has to file the Annual Return regularly every year.
As per the rules in the Companies Ordinance, each of the Hong Kong companies has to file the Annual Return regularly every year around its anniversary date. The form that is used is called the NAR1 form.
Often confused, this form has nothing to do with the company’s taxes. However its contents include the particulars of the issued share capital, registered office, secretary, directors, shareholders, etc.
Understanding the Purpose of the Hong Kong Annual Return (NAR1)
The annual return must be filed within 42 days of the anniversary date of the company’s incorporation every year. It is a compulsory obligation. If a person forgets to file the annual return, they will be liable to pay late fines, depending on how late the filing is. Also, failure to comply with the rules of the Companies Ordinances may ultimately lead the company and its head to the court.
Instead, it serves to update the Companies Registry on key aspects of your company’s structure and essential details, including:
- Details of the issued share capital
- Registered office address in Hong Kong
- Particulars of the company secretary(s)
- Information about the director(s)
- List of current shareholder(s)
Annual Return Form: Key Deadlines and Consequences of Late Filing
Filing an annual return is a legal obligation that must be completed within 42 days of the company’s anniversary of incorporation each year. Failure to meet this deadline will result in escalating late filing fees.
Persistent non-compliance with the provisions of the Commercial Code may have serious legal consequences for the companies. Its responsible representatives, potentially including financial penalties and criminal prosecution.
Exemption from Annual Return Filing
A company under the deregistration process is still required to observe its obligations under the Companies Ordinance until it is deregistered. For instance, NAR1 filing is only applicable for companies that are in dormant status. To put the company in dormant status, the company needs to submit a special resolution to the Companies Registry for approval.
How Startupr Can Assist with Your Annual Return
At Startupr, we offer comprehensive services for entrepreneurs worldwide who have decided to do business in Hong Kong. Our services include such as timely preparation and filing of your Annual Return (NAR1) and the renewal of your mandatory Business Registration Certificate.
If your company has outstanding filings, our experienced team can efficiently help you rectify the situation. We bring your company back into good standing with the Companies Registry.
Avoid the risks and costs associated with late filing. Contact us today to discuss your company renewal requirements and ensure seamless compliance.
