The Hong Kong company secretary for private companies' service can be a challenging process. Hong Kong has strict requirements pertaining to a business registration certificate and filing your annual returns. If you don't meet these, you could face late penalties.  Even worse, you could end up in imprisonment. 

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That's why it's important to hire a professional firm to ensure you comply with the Hong Kong Companies Ordinance's statutory rules. Here's how a Hong Kong company secretary can help you negotiate the latest Hong Kong Company Compliance update. There is a difference between the company registry and business registration. 

 

Company Registration

The Companies Registry administers and enforces the Companies Ordinance (Chapter 622, Laws of Hong Kong). The Companies Registry is responsible for providing services for the incorporation of local limited companies and the registration of non-Hong Kong companies which were incorporated outside Hong Kong and have established a place of business in Hong Kong.

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Business Registration Certificate

In order to operate a company in Hong Kong, you need to meet several complicated criteria. For starters, you're required by law to have a local resident company secretary. You also need a local registered address (Showed in your Business Registration Certificate) and maintain a designated representative and an auditor who is a Certified Public Accountant in Hong Kong.

In this light, it's clear that you need a company secretarial service, but how does this service benefit you in other ways? Ways that go beyond merely complying with the law.

 

Benefits of Hiring a Hong Kong company secretary and Hong Kong Accounting Service

Our business helps your Hong Kong business to thrive in this highly regulated environment. Yet, some of these solutions apply equally to businesses all over the world.

 

These are:

• Time-saving solutions that allow you to focus on growing your business

• Avoidance of sourcing and hiring expensive specialized employees to handle complex tasks

• Expert knowledge and experience on call

• A dedicated office space, free from the workday distractions

• Access to a team of experienced financial experts with diverse talents

• The latest bookkeeping and accounting software at your disposal

• The ability to up-or downscale instantly

 

When you're starting out in Hong Kong, it pays to get an expert team on your side from the word go. That way, you're assured that your paperwork is compliant from the outset and avoid backlogs and last-minute stress.

 

How a Hong Kong company secretary Service Helps Get Your Company off the Ground

Our company formation service will tick every box of the company registration requirements. This ensures your business is up and running as soon as possible.

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We do all the legwork associated with a company name search. We prepare the relevant documents, Company Articles of Association and Certificate of Incorporation. Our expertise helps you receive your Business Registration License as soon as possible.

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We also take care of all the intricacies involved in your first year of business. These include preparing a Company Annual Return NAR1 and keeping your Significant Controller Register up to date. 

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Since we're acting as your designated representative, you can use our address as your business's physical address. We forward all government mail (unopened) to your address.

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We'll also make all the arrangements needed to open a bank account and arrange an appointment for you with your chosen bank.

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All we need from you are:

• 2 or 3 proposed names for your Hong Kong company

• A description of your business activities

• A list of directors (including one natural person over 18 years old)

• Your company details like a certificate of incorporation, AA, etc.

 

We take care of all the rest of the red tape. For more about our Company Formation Services, go to this page. 

Annual Maintenance of Hong Kong Private Companies

Once you're up and running, we can assist with everything you need to comply with the latest Hong Kong annual legal requirements.

 

These necessities include:

• Maintaining an accurate register of members and register of directors at all times. 

• Maintaining Significant Controller Register,

• Renewal of business registration one month before it expires

• Arranging an AGM within 18 months from the date of incorporation and once a year after that

• Preparation of a directors report and annual accounts for each of the above AGMs

• Compliance with annual accounts filing deadlines

• Meeting the requirements of the Hong Kong Companies Registry and Tax Authority

• Maintaining the Incorporation Certificate, Articles of Association and Business Registration Certificate

 

In addition to these requirements, companies need to maintain detailed and up-to-date records. These include financial details, share certificates and minutes of directors and members meetings.

 

In Hong Kong, there are also numerous requirements with regard to financial and accounting records. 

Necessary Accounting Functions

 

Hong Kong's Financial Reporting Standards hinge on the International Financial Reporting Standards set up in 2005.

 

That means every company must maintain detailed, accurate accounting records to ascertain the assessable profits of the business. You must keep this information on record for at least seven years. 

 

Even if you keep your accounting records outside Hong Kong, the returns must be available within the country. 

The following items form part of a company's business records and must be available for inspection on demand. 

The following items form part of a company's business records and must be available for inspection on demand. 

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• All records of payments, receipts, income, and expenditure

• All documentation necessary to verify the above records eg. bank statements, invoices, receipts, etc.

• A record of the business assets and liabilities

• Daily records of money received and spent as well as supporting documentation

 

In addition, they must fill in a specified annual return (NAR1) form with the following information:

• Address of the registered office

• Names of directors and shareholders

• Name of the company secretary

 

This Annual Return is due annually within 42 days of the company's anniversary every year, regardless of whether any information has changed. Failure to comply holds the risk of fines, prosecution, and an increased registration fee. 

The company directors are personally responsible for maintaining all these records, so it's easy to see why a trusted secretarial service is a vital necessity in Hong Kong. It's not humanly possible for directors to fulfill all these requirements and run a business at the same time. 

 

As if all that wasn't enough, there are also stringent tax requirements when you're running a business in Hong Kong.

Annual Tax Return Filing Requirements

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Every year, every company formed in Hong Kong must file a Profits Tax Return and audited accounts with the IRD of Hong Kong. The IRD notifies companies with regard to their obligations by 1st April annually. They must complete their filing within one month of this notification. 

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After that, a long list of penalties come into effect and prosecution can result from non-compliance. 

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The following supporting documents must accompany all Tax Returns:

• Company balance sheet

• Auditors report

• Profit and Loss Account pertaining to the relevant basis period

• Tax computation regarding assessable profits

 

Hiring an experienced professional to deal with these returns is vital to ensure compliance and avoid serious consequences. Read more about our Annual Return and Maintenance Service here. 

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Choosing a Hong Kong Company Annual Return and Maintenance Service

When you're running a business in Hong Kong, it's easy to inadvertently fall foul of the many regulations and strict legislation involved. That's why it's important to get specialized help and making the right choice with regard to secretarial, tax and accounting services is imperative to your success.

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When searching for an Annual Return and Company Maintenance service it's important to choose a firm with extensive local knowledge. They should be familiar with Hong Kong's work culture, economic environment, and business activities.

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You'll need to trust these people with all your important documentation from far away. So, so it's important that you don't need to worry about micro-managing their every move.

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The best way to get a feel for any service is to contact referrals and ask them what it's like working with the company in question. You can also look up online reviews for further clarity. 

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It's also important to meet with the secretarial company before entrusting them with your sensitive information. That way, you can clear up any questions you have and get a feel for whether you're able to form a productive and trusting relationship with them. 

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You only have one chance to register your Hong Kong company and ensure you're complying with the necessary legislation. Never rush into it. Choosing wisely at the outset means you'll never have to worry about falling foul of the law and facing the serious drawbacks that are bound to result from this.

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Put your mind at ease by making the right decision from the start. 

Get on Board With Hong Kong's Leading Corporate Taxation and Accounting Services

 

We make it our business to ensure that you meet all the requirements for the annual maintenance of Hong Kong private companies according to the Hong Kong Company Compliance update. 

 

Get in touch to find out more about our Hong Kong Company annual return and maintenance service and what we can do for you.