Hong Kong Company Compliance: Annual Returns, Business Registration, and Tax Filing
A practical guide to keeping a Hong Kong company compliant. Companies Registry filings, IRD tax returns, and the deadlines that catch people out.
Hong Kong's appeal
Hong Kong offers a territorial tax system (only Hong Kong-sourced income is taxed), no capital gains tax, no VAT/GST, and a corporate tax rate of 8.25% on the first HK$2 million of profits (16.5% thereafter). For international businesses, particularly those with operations across Asia, it remains one of the most attractive jurisdictions in the world.
But the compliance obligations are real, and the penalties for non-compliance are criminal, not just financial.
The filing calendar
| Filing | Deadline | Fee |
|---|---|---|
| Annual Return (NAR1) | Within 42 days of anniversary of incorporation | HK$105 |
| Business Registration Renewal | Annually on anniversary | HK$2,200 (one-year) |
| Profits Tax Return | Within 1 month of issue by IRD (first return: 18 months after incorporation) | Free |
| Employer's Return (BIR56A) | Within 1 month of issue (usually April) | Free |
| Significant Controllers Register (SCR) | Maintained at registered office at all times | N/A |
Annual Return vs Business Registration
Hong Kong has two separate annual filings that are often confused:
Annual Return (NAR1): Filed with the Companies Registry. Confirms your company details, directors, shareholders, and registered office address. Due within 42 days of your incorporation anniversary. Late filing attracts escalating penalties from HK$870 to HK$3,480.
Business Registration (BR) Renewal: A separate fee paid to the Inland Revenue Department. Due on your incorporation anniversary. Late payment attracts a 5% surcharge immediately, with potential prosecution.
These are two different filings to two different government departments with two different deadlines. Missing either one has consequences.
Tax filing
Hong Kong's tax year runs from 1 April to 31 March (though companies can elect a different financial year-end).
First Profits Tax Return: Issued approximately 18 months after incorporation. You have one month to file. This generous initial period is a trap for the unwary, as many founders forget about it entirely.
Subsequent returns: Issued annually, usually in April. Due within one month, though extensions are available depending on your accounting year-end:
| Year-end | Extended deadline |
|---|---|
| 31 March ("N code") | 2 November |
| 31 December ("D code") | 15 August |
| All others ("M code") | No extension |
The audit requirement
Every Hong Kong company must have its accounts audited annually, regardless of size. There is no small company exemption. The audit must be performed by a practising certified public accountant (CPA) registered in Hong Kong.
Audit costs range from HK$5,000 for a dormant company to HK$30,000-100,000+ for an active trading company. This is a non-negotiable annual expense.
Penalties
Hong Kong treats compliance failures seriously:
- Late Annual Return: HK$870 (up to 42 days late) escalating to HK$3,480 (over 9 months late)
- Late Business Registration: 5% surcharge, potential prosecution
- Late tax return: Estimated assessment issued (often higher than actual liability), potential prosecution with fines up to HK$10,000 + 3x the tax undercharged
- Failure to maintain SCR: Fine up to HK$25,000 and imprisonment for up to 6 months
How CompCal helps
CompCal tracks both the Companies Registry and IRD deadlines for your Hong Kong entities, including the 42-day Annual Return window, Business Registration renewal, and tax return deadlines. All alerts, all entities, one dashboard.