Under Hong Kong companies ordinance, every incorporated company in Hong Kong is required to file an Annual Return form (NAR1) at the Companies Registry on the anniversary date of its incorporation. However, the Financial Secretary of the Hong Kong Special Administrative Region, Mr. Paul Chan Mo-Po, proposed one new relief scheme for Hong Kong-based companies.
The relief scheme supports that all the enterprises and safeguard jobs would be waived with the registration fees for Annual Return (NAR1) for two years (except for the late penalties).
Waiver of Annual Return (NAR1) Filing Fees from October 1, 2020 – September 30, 2022
Hong Kong incorporated businesses will not be required to pay a registration fee for annual return filing from October 1, 2020, to September 30, 2022 (inclusive of both dates).
The waiver of registration fee will be applicable to the annual return delivered on time including those returns delivered within 42 days after the company’s return date for private companies with share capital, public companies with share capital, companies limited by guarantee, and annual returns delivered within 42 days after the anniversary of registration of the non HongKong registered companies.
This new regime amends the Companies Regulation fees (Cap.622K) by affecting the waiver of annual return’s registration fees for two years, except for the late delivery fee. This new amendment also highlights reducing paying fees to the incorporation and registration of non HongKong companies through electronic means by 10%.
The registration fees for annual return will be followed based on the below-mentioned criteria – Local private companies having a share capital: $105
Note: For the late delivery of annual returns, this newly amended waiver of annual return fees will not be applicable. Enterprises still need to pay the statutory higher registration fees depending upon their delivery date. Remember that the late annual returns fees will be delivered within the concession period.
The Annual Return (NAR1) vs. Profits Tax Return (PTR)
The Profits Tax Return (PTR) is often confused for the Annual Return Tax (NAR1) of a company. The PTR is for filing the company’s taxes to the Hong Kong government. The incorporated Hong Kong company needs to file the Profits Tax Return and the annual audited accounts to the IRD (Inland Revenue Department) for the taxation purpose.
On the other hand, the companies’ annual return depicts their company’s particulars, such as company secretary, company directors, and shareholders. It is distinct from profits tax return (PTR) because of financial information filing for tax purposes.
Every business owner has to file the Profits Tax Return (PTR) according to the Inland Revenue Ordinance (Cap.112).However, the Annual Return (NAR1) is a compulsory annual requirement under the Companies Ordinance.
Startupr New Company Formation & Renewal Fees from October 1, 2020, to September 30, 2022
As the relief scheme for Hong Kong enterprises, the Hong Kong Special Administrative Region’s Financial Secretary proposed a waiver of the Annual Return registration fee for two years. Startupr has also updated its pricing for the formation of new HongKong enterprises.
Startupr’s pricing will be:
- For Hong Kong Company Formation, Startupr’s new price is $ 969 USD
- For Hong Kong Company renewal, Startupr’s new price is $540 USD
Form Your Hong Kong Company Online
Startupr is renowned as being one of the leading company formation providers in Hong Kong. If you are thinking of forming a Hong Kong company, and want to enjoy this new proposed regime of waving annual returns for two years, do let us know! We have years of incorporating and registering Hong Kong companies. We are also offering our advanced online back office system to form your company even if it is remotely, easily.