As the company was Dissolved, no need to submit Annual Return (Form NAR1) to the Companies Registry anymore !
After the first year of the Incorporation, the company must file the Annual Return (Form NAR1) and replacement of Business Registration certificate per year. Otherwise, an amercement of the Hong Kong Government will be as follows:
1) Business Registration Fee
The Business Registration is due for renewal at a cost of HK$250 per annum. (Branch Business Registration is HK$323) Late renewal will attract a penalty of HK$300. Further delay will result in court proceeding and extra fine.
2) Profits Tax Return
First Profits Tax Return of the company will be issued by the Inland Revenue Department (IRD) approximately after 18 months of incorporation. The company is required to complete and submit the Profits Tax Return together with a set of audited account to the IRD in order to determine the amount of tax required to pay in respect of the basis period. Generally, first year accounting and auditing will take a longer time to complete. And according to the Hong Kong Companies Ordinance, the annual financial statements of all Hong Kong Limited Companies must be audited by Certified Public Accountant (CPA) for submission, it is recommended to arrange an accountant as soon as possible. Once the Profits Tax Return is submitted, it is difficult to change afterwards.
The first Profits Tax Return MUST be completed and submitted within 3 months from the date of issue. Therefore, you should inform the accountant once the Profits Tax Return arrived in order to consider whether an extension application is applicable. Late or non-submission will attract heavy fine.
Accountancy and audit fee mainly depend on:
- nature of business (manufacturing, trading, service, etc.)
- scale of business (amount of turnovers, number of transactions, etc.)
- other factors, such as estimated amount of time spend, level of skills and responsibility, etc.
3) Employer's Return
Every first week of April, the Inland Revenue Department will issue an Employer's Return (IR56A&B) to the company. Employer has obligation to and MUST complete and submit the Employer's Return within 1 month regardless of whether the company has hired employee or not. Delay will attract fine.