Successful registration of a Hong Kong company is only the first step; the key to ensuring it survives legally and operates well is annual compliance maintenance. Many entrepreneurs have neglected maintenance, resulting in fines and even legal risks. In this article, we will systematize the core maintenance matters of Hong Kong companies every year from the perspective of science and technology, so that you can operate your business in a clear way.

I. Two major statutory maintenance centers of the year: annual review and audit of tax returns

1. Commercial and industrial maintenance: annual review (annual audit)
Annual Audit is an annual renewal of qualifications to the Hong Kong Companies Registry and the Inland Revenue Department, which is equivalent to a "medical certificate" for a company.

Contents::

• Renewal of business registration certificates: Every year, before the anniversary date of the company's incorporation, it is necessary to pay a fee to the tax office to renew the business registration certificate for the new year.
• Submission of annual returns: After the anniversary of the company's incorporationWithin 42 daysThe company has to submit NAR1 form to the Registrar of Companies to declare the latest information of directors, shareholders, secretary, address, and so on.
• Renewal of Statutory Secretary and Registered Address: Ensure that secretarial services and addresses are valid.

Consequences of not having an annual review: Late payment will incur incremental fines of up to thousands of Hong Kong dollars, and in severe cases can result in the company being struck off, the director's credit being damaged, and the bank account being closed.

2. Tax maintenance: bookkeeping, audits and tax returns
Under the Hong Kong Companies Ordinance, all limited companies, regardless of whether they are making profits or not, are required to have their accounts audited annually by theHong Kong licensed accountantsIssuance of audit reports.

core process::

• Documentation preparation: Collect all monthly bank statements, contracts, invoices, expense documents, etc. for the period of account.
• do the books:: Accountants organize documents and prepare financial statements.
• audits: Audit of financial statements by licensed accountants and issuance of audit reports.
• declare dutiable goods (at customs): Submit the audit report to the Inland Revenue Department together with the profits tax return.
• crucial time: The first tax form for a new company is usually issued when the company has been in existence for 18 months and needs to be filed within 3 months. Thereafter, it is done annually based on the company's financial year-end date.
• key principle: Hong Kong adopts "territorial taxation", whereby only Hong Kong-sourced profits are taxed. If the profits are wholly derived from overseas, they may beApplying for an offshore exemption, but must be approved by the Department of Revenue through an audit report and a complete material unsolicited application.

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Second, the four major compliance details in daily operations

1. Timely Reporting of Information Changes: Any change in the directors, shareholders, secretary, address or name of the company must be made after the change has taken place.Within 15 daysNotify the Registrar of Companies.
2. Maintain a register of significant controllers: The company is required to keep this booklet at its registered address to record the details of persons having significant control over the company for ready access by law enforcement officers.
3. Proper maintenance of business records: The law requires that all business records (books of accounts, vouchers, contracts, bank documents, etc.) must be kept at least7 years, for verification.
4. Bank account maintenance: Actively cooperate with the bank's regular due diligence, update annual review documents (BR, NAR1) in a timely manner to ensure that the background of transactions is true and compliant, and maintain active accounts.

If you have domestic company registration (Shenzhen / Guangzhou / Shanghai / Beijing / Hangzhou, etc.), overseas company registration (Hong Kong / U.S. / Japan / Britain / Singapore / Thailand / Vietnam / BVI / Cayman Islands, etc.), Hong Kong identity applications and renewals, cross-border tax planning, shareholding structure design, compliance and risk control programs and other needs, you can add customer service (WeChat: qcygscszk, cell phone: 18676749275), we will customize your exclusive optimization program to help you comply with the business, save money and increase efficiency!

III. Common cognitive misconceptions that must be bypassed

Q：Can I make a "zero return" if my company's bank account only receives money but has no on-site office?
A: Absolutely wrong. As long as there is a bank account flow, it is considered to be a business activity and must be audited. "Zero filing" applies only to the entire financial yearNo banking transactions at all, no assets heldThe "inactive company". Failure to do so is a form of tax concealment with serious consequences.

Q: If the profit comes from overseas and is not subject to tax, does it mean that there is no need to do an audit?
A: An audit must be done. Offshore exemption is not automatic and must be claimed from the Inland Revenue Department (IRD) by submitting the required audit report and relevant chain of evidence (e.g. overseas contracts, logistics documents). Without an audit, the Inland Revenue Department has the right to presume that the profits are sourced in Hong Kong and issue a tax bill.

Q: Can I use mainland invoices instead of Hong Kong bank statements to do my accounts?
A: No can do. The Hong Kong audit follows the principle of "substance over form".Bank flows are the core evidence to verify the authenticity of the business, must be provided. Invoices alone do not create a closed chain of evidence to complete the audit.

Q: In order to save money, can I handle the annual audit myself and not appoint a secretarial firm?
A: The risks are extremely high. A licensed secretarial firm is not only a statutory requirement, its value lies in providing a compliant address, accurate reminders of key dates, and professional handling of government documents. Handling on your own is highly susceptible to being overdue due to unfamiliarity with the process, or missing important government correspondence, resulting in fines and anomalies in your company's status.

IV. Memorandum on key time points

• annual audit: Anniversary of the company's incorporation.
• Submission of annual returns: Within 42 days after the anniversary date.
• Audit initiation: Preparation can begin as soon as the financial year-end date closes.
• Salaries tax returns: Forms are received around April each year and are submitted within 1 month (if any Hong Kong employees or directors are employed on the payroll).

Summary: The systematic and rigorous maintenance of a Hong Kong company is the cornerstone of its legitimate operation. Understanding the two core aspects of annual review, audit and tax filing, and paying attention to the details of daily compliance can not only effectively avoid risks, but also accumulate a good reputation for the company, paving the way for future financing and development. Leave the professional work to the professionals, entrusting a compliant secretarial company and a team of accountants is the way to manage efficiently and steadily.