Companies Ordinance – Annual Return
A private company must annually lodge with the Companies Registry an Annual Return which confirms the details of the company held by the Companies Registry. Such details include those of Directors, Shareholders, Issued Share Capital, Company Secretary and Registered Office. The Annual Return is due for lodgement within forty-two days of the anniversary of the company’s incorporation.
Where a company is a private company, financial statements are not required to be lodged with the Companies Registry.
At present, the lodgement fee payable to the Companies Registry for an Annual Return is HKD105. However, fees rise rapidly should the Annual Return be lodged late and may include prosecution of the officers of the company.
Companies Ordinance – Annual Accounts and Audit
As a requirement of the Companies Ordinance, a Hong Kong company must prepare and have audited its first financial statements within eighteen months of its incorporation and subsequently each twelve months thereafter. While the default financial year in Hong Kong is March 31, a company may select any financial year end suitable to it, subject to meeting the requirements for financial statement preparation and audit noted above.
Inland Revenue Department – Business Registration
At incorporation the company must pay a fee (at present HKD2,200) for business registration. This fee becomes an annual fee payable to the Inland Revenue Department prior to the company’s anniversary of incorporation. Late penalties apply.
Inland Revenue Department – Income Tax
The Hong Kong Inland Revenue Department will issue an Income Tax Return (known locally as a Profits Tax Return) to the company’s registered office address generally between twelve and eighteen months after the company’s incorporation date.
The first Profits Tax Return will be required to be lodged within three months of the date of its issue and accompanied by audited financial statements. Subsequent Profits Tax Returns will generally be required to be lodged on an annual basis thereafter.