Introduction
Hong Kong companies must adhere to strict compliance and filing requirements to maintain transparency and follow statutory obligations. This guide outlines the key annual compliance requirements and deadlines for private limited companies in Hong Kong, structured by the sequence of actions.
Annual Deadlines for Hong Kong Companies : a Fiscal Year Overview
The fiscal year for Hong Kong companies typically begins on April 1 and ends on March 31 of the following year. However, companies are free to choose their own fiscal year-end date according to their specific needs.
1. Preparation for Tax Return Filing
Annual Tax Return with IRD:
Companies must file their Tax Return along with the audited accounts annually.
Includes the company's balance sheet, auditor’s report, profit and loss account, and a tax computation.
Must be filed within one month from the notification date, with possible extensions upon request.
2. Provisional and Final Tax Payments
Provisional Tax Payments: Paid in two installments, typically with the first due within three months after notification and the second in the following three months.
Final Tax Payment: Due as specified by the IRD, usually in November for companies with a December 31 year-end.
3. Audit of Financial Statements
Audit Requirements:
Mandatory annual audit by a Certified Public Accountant (CPA).
Audited financial statements are necessary to support the profit tax return.
4. Filing Annual Return with Companies Registry
Annual Return:
Must be filed within 42 days of the company’s incorporation anniversary.
Contains details such as registered office address, shareholders, directors, and company secretary.
Dormant companies are exempt from filing annual returns.
Late filing incurs higher fees and potential prosecution.
5. Employer’s Return of Remuneration and Pensions
Employer’s Return: Filed annually to report employee remuneration, aiding in personal tax assessments. The exact deadline is typically specified by the IRD.
6. Annual General Meeting (AGM)
AGM Requirements:
Held within 18 months of incorporation and subsequently every calendar year, not exceeding a 15-month interval.
Financial statements must be audited and ready to be presented.
Ongoing Compliance Requirements
Throughout the year, companies must maintain ongoing compliance, including:
Registered Address: Maintain a local registered address (P.O. Box not allowed).
Company Secretary: Maintain a local resident company secretary, either an individual or a body corporate.
Directors and Shareholders: At least one director and one shareholder required, who can be of any nationality and must be above 18 years old.
Appointed Auditor: Required unless the company is deemed dormant.
Notification of Changes: Must notify the Companies Registry of changes in registered particulars within specific time frames, usually within 15 days of the change.
Business Registration: Renew annually or every three years, depending on the certificate's validity period.
Records and Documentation: Maintain essential documents such as the incorporation certificate, business registration certificate, articles of association, meeting minutes, financial records, company seal, share certificates, and various registers (members, directors, shares).
Additional Compliance
Business Records: Maintain accurate accounting records for seven years, including books of accounts, supporting documents, asset and liability records, and daily transaction records.
Financial Reporting Standards: Since January 1, 2005, Hong Kong has adopted a Financial Reporting Standards (FRS) framework based on IFRS.
Conclusion
Adhering to Hong Kong’s statutory requirements is crucial for maintaining good standing and avoiding penalties. Engaging professional services can help ensure that all statutory obligations are met promptly and accurately, keeping companies compliant throughout the year.
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