Having already incorporated your company in Hong Kong, you can now proceed to find out about the annual obligations. You may be wondering what is required for the annual maintenance of a company in Hong Kong? In this article, we will tell you everything you need to know about it. The truth is that it is quite simple: every year, your company must carry out  administrative procedures.

Below we tell you what they are:

1.      Renewal of Commercial Registry

Your company needs to renew its Business Registration Certificate (BRC) with the Inland Revenue Department (IRD). This document confirms that your company is still registered with the Hong Kong tax authorities. The process is simple, your company will receive a new Business Registration Certificate by mail and you will simply need to pay the relevant business registration fee on time.

2.      Filing of Annual Return (Form NAR1)

Every year, your company must prepare and  submit a Annual Declaration  Form NAR1 is a form of registration known as Form NAR1 in the Hong Kong Companies Registry. It is mandatory to file Form NAR1 every year on the anniversary date of the company. The form serves to inform the authorities of the current status of your company (name, share capital, address, directors, shareholders, etc.) and to keep track of all the updated information about your company.

It is vitally important that you respect the submission dates, since in case of delay, progressive sanctions will be applied. In turn, a important clarification: Although the Annual Declaration is submitted once a year (on the date of the company's anniversary), you should not wait until that date to report any changes in your company. Most changes affecting your company must be reported within 15 days of their effective date. In short, changes must be communicated to the Commercial Registry as soon as they occur.

3.      Holding an Annual General Meeting

Thirdly, your company must hold an Annual General Meeting (AGM) on an annual basis. The AGM can be held within 18 months of the date of incorporation and is a review of the annual balance sheet and management. Shareholders meet in person or virtually, according to their preferences.

As for the date of the Annual General Meeting, it is not necessary that it takes place on the anniversary date of the company. In fact, the date of the Annual General Meeting will be set based on the date on which your company ends its financial year.

4.      Filing Income Tax Return

It is mandatory to file the BIR51 income tax return with the Inland Revenue Department (IRD) every year. The filing date depends on the closing of the company's financial year.

5.      Renewal of Commercial Registry

It is suggested that your company maintains clear accounting records. The accountant should compute all transactions of the company for a period of one year (1 January to 31 December), assessing assets and liabilities and taking into account Hong Kong laws and the IFRS accounting standard.