Annual Filing Requirements and Deadlines
Both local and foreign companies (an incorporated subsidiary or registered branch) in Hong Kong are subject to annual filing requirements with the Inland Revenue Department (IRD) and Companies Registry. The annual filing requirements of Hong Kong private limited companies are as follows:
Filing of Annual Return with Companies Registry
A private limited company incorporated in Hong Kong under the Companies Ordinance is required to file an Annual Return signed by a director, company secretary, manager or authorized representative with the Companies Registry. However, a private company which has applied for a dormant status (i.e. a company that has no relevant accounting transactions during a financial year) under the Companies Ordinance shall be exempted from filing annual returns. An Annual Return is a return, in a specified form, containing the particulars of the company such as the address of the registered office, shareholders, directors, secretary, etc. There is no requirement to file the financial accounts of the company with the Company Registry.The Annual Return must be filed once in every calendar year (except in the year of its incorporation) within 42 days of the anniversary of the company’s incorporation date. Even if the information contained in the last return has not changed since, you still need to file an annual return before the due date. Late filing attracts a higher registration fee and the company and its officers are liable to prosecution and fines.
Filing of Annual Tax Return with Inland Revenue Department (IRD)
As per Hong Kong company law, every company formed in Hong Kong, must file a Tax Return (it’s also called Profits Tax Return in Hong Kong) along with its audited accounts on an annual basis with the Inland Revenue Department of Hong Kong (“IRD”).IRD issues Tax Return filing notifications to companies on the 1st of April every year. For the newly incorporated companies, the notification is generally sent on the 18th month of the incorporation date. Companies must file their Tax Return within one month from the date of notification. Companies can request for an extension, if needed. You may incur a payment of penalty or even prosecution, if you fail to submit your tax return by the due date. When filing the Tax Return, the following supporting documents must also be attached:
- The company’s balance sheet, auditor’s report and Profit & Loss Account relating to the basis period
- A tax computation indicating how the amount of assessable of profits (or adjusted losses) has been arrived at
