What is Hong Kong Annual Review? What is the difference between Annual Review and Tax Returns?
What Generally, companies which operate in Hong Kong require annual review. If not submitting within a certain period of time, they will be fined. Not paying on time would cause inconvenience on company further activities due to the loss of trust.
Types of Annual Review:
It consists of two parts. Annual Return and Business Registration Certificate. Annual Return is a form that requires companies to fill in at the end of every year. It requires to provide company shareholders, directors, company address information and so on. Business Registration Certificate is granted by the Inland Revenue Department (IRD) once you set up company in Hong Kong and it is required to renew every business year.
1. How often is annual review required to renew and how much does it cost?
Annual Review requires company to complete it every year. There are two fees to pay. One is to pay to receive the business registration certificate of the new year. The other one is to declare the updated information of shareholders and directors. The actual amount depends on the government changes.
2. Is annual review equal to tax returns?
They are not equal. Annual review is during the process of renewal of certificate. Tax return is to declare company financial report of previous financial year to the government in order to decide if the company has to keep paying taxes.
3. How long does annual review take to complete the process?
The working days of renewing Business Registration Certificate are 2-3 days. Annual Review can only be submitted on the expired date. It takes 2-3 days also.
4. What kind of information are required to submit?
NNC1 or NAR1
Shareholders or directors related identity proof
5. What kind of documents will be received after annual review?
New Business Registration Certificate, New NAR1, Company address documents
6. What are the consequences of not reporting annual review?
In terms of fine: 42days after the deadline of Annual Review, it is fined for HKD$870 in three months; HKD$1,740 in 3-6 months; HKD$2,610 in 6-9 months; HKD$3,480 in 9-12months
In terms of image: It affects when shareholders need to open bank account or operate in other businesses. They have a higher chance of getting rejected.
In terms of regulatory: If not reporting annual review for a long time, shareholders, directors and company would be on blacklist and they are not allowed to register any companies or do financing in Hong Kong.
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