NAR1 – Filing of Annual Return
Hong Kong law requires local incorporated companies to file their annual return with the Companies Registry.
Once the company has been set up in Hong Kong, the company filing doesn’t end here. Hong Kong law requires local incorporated companies to file their annual return with the Companies Registry. You can choose Startupr as your company secretary to complete the whole company formation process, and filing the annual return submission with the Companies Registry.
Filing of annual return (form NAR1)
According to the Companies Ordinance, every company incorporated in Hong Kong needs to file an Annual Return – related to your company particulars as a recapitulation (nothing related to your business or profits). It is a compulsory obligation and needs to be filed within 42 days after the anniversary of the company’s return date. This form is named “NAR1”.
When should the annual return be delivered?
As mentioned above, the annual return must be filed within 42 days of the company’s return date. However, different types of companies have different return dates. For instance, a private limited company by shares has to deliver the annual return every year within the 42 days after the anniversary date of incorporation.
However, a company limited by guarantee is obliged to prepare the first audit report within 18 months from the incorporation date, and the first Annual Return (NAR1) needs to be submitted along with the first audit report, 9 months after the audit report year ended date. The Annual Return (NAR1) must also be filed within 42 days of the annual return date of the company every year along with an audit report.
What details will be included while filing form NAR1?
As the name suggests, Hong Kong annual return is a return that holds the most updated company’s particulars of persons such as the directors, shareholders, company secretary etc. on the return date, which has to be signed by the director or company secretary before submission. It also holds the registered office’s address.
What are the consequences if the person fails to file their annual returns?
In case a person forgets to file their annual returns with the Companies Registry, the company will be required to pay higher registration fees for late delivery of Annual Returns for registration.
Late filing fees
For a local private company, the registration fee payable for the late delivery of an Annual Return if the Annual Return is delivered is:
- more than 42 days but within 3 months after the company’s return date – HK$870
- more than 3 months but within 6 months after the company’s return date – HK$ 1,740
- more than 6 months but within 9 months after the company’s return date – HK$ 2,610
- more than 9 months after the company’s return date – HK$ 3,480
Note: The company’s return date is the anniversary of the date of the company’s incorporation in a year.
In addition, according to section 662 of the Companies Ordinance, if a company fails to comply with the provision, the company and every responsible person of the company are 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.
How can Startupr help you?
If you are filing for an annual return with the Companies Registry, Startupr can help you with any professional to advise. We will take care of your filing with the Companies Registry without getting late. We are an expert of HK incorporation and company secretary services.
Our fees for Filing of Annual Return and e-Certificate (NAR1) is $105 (Gov. Fees of $25 have been included) – and is available to existing Startupr’s clients only. Just click the inquiry button below.