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A Detailed Guide On How To Renew Business Registration In Hong Kong

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how to renew business registration in hong kong

Every company or business in Hong Kong must be registered with the government. However, there’s so much to come after this process is complete. You’ll need to file your annual returns and meet up with several other company renewal requirements every year. Are you a new business owner who is unsure of how to handle company renewal requirements? You’re at the right place. This piece will teach you how to renew business registration in Hong Kong. 

How To Renew Business Registration In Hong Kong: Requirements For A Limited Company

Before diving into how to renew business registration in Hong Kong, you must first learn the requirements for renewal. If you own a Hong Kong business, these are some of the renewal requirements to look out for:

  1. The business registration certificate has to be renewed within one to three years after the company has been incorporated. The duration for this incorporation will depend on the type of business certificate that you get. 
  2. The business has to renew any forms, documents or licenses at least a month before it expires. 
  3. The annual return for the business should be filed within 42 days from the company’s anniversary date. You’ll be reminded about your annual return to be filed before the due date.
  4. The business has to file an Initial Annual Audit within 18 months of incorporation. However, companies with unlimited liability are exempted from this audit. 
  5. Businesses have to handle their Inland Revenue Department tax filing within 18 months after their incorporation.
  6. The company is expected to hold an Annual General Meeting (AGM) within the first 9 months after it has celebrated its one-year incorporation anniversary, or this meeting can also hold within 3 months after the accounting reference period (whichever is later). According to Section 584 of the Company Ordinance, companies are allowed to hold their meetings in at least two different locations with the use of information and communication technology. 

How To Renew Business Registration In Hong Kong: Types Of Renewals

As part of the process of how to renew business registration in Hong Kong, there are also various types of renewals you might undergo. As you’ve probably noted, a Hong Kong business is subject to different types of renewals. Now, let’s look closely at each of them.

Filing Annual Returns

According to the rules in the Companies Ordinance, Hong Kong companies are expected to file their annual returns every year. They are expected to file their returns using a prescribed form that’s referred to as the NAR1 form. The details of this form should include information about the issued share capital, registered business capital, registered office, directors, shareholders, etc. 

The annual return for the business should be filed within 42 days from the company’s anniversary date. If you fail to file your annual return within the stipulated period, you’ll be subject to fines. The details of the fine you’ll be subjected to are as follows:

  • Within 3 months of the company’s due date – HKD 870
  • Within 3 – 6 months of the company’s due date – HKD 1,740
  • Within 6 – 9 months of the company’s due date – HKD 2,610
  • More than 9 months after the company’s due date – HKD 3,480

Only businesses that have applied for dormant of business are exempted from filing annual returns.

Annual Audit and Auditor

The Companies Ordinance has clearly stated that every business is expected to appoint an auditor to check through their financial records. However, you have to ensure that this auditor is certified as a Hong Kong CPA (Certified Public Accountant). The role of the auditor would be to review all your accounts, determine accessible profits and any taxes that you’re supposed to be paying. Also, they will fill the Profit Tax Returns and Audit report for you and send it to the appropriate authorities.

Profit Tax Reporting

The Companies Ordinance clearly stipulates that a company is expected to file its first profit tax return within 18 months after it began operations. After the initial annual audit, you will be expected to file the next tax return forms by the 1st of April every year. However, if you have a business that is yet to commence operations, hasn’t gained any profit, or has ceased to exist, the IRD would not request for an annual tax return. Your first tax issuance would have to occur within the first 3 months after the issuance date. 

Employee’s Return For Remuneration and Pensions

This is another type of renewal for Hong Kong businesses. It involves submitting information to the IRD about the returns of your employees. This would also contain information about the remuneration of directors. 

Annual General Meeting

According to the Companies Ordinance, all businesses or companies are expected to hold an Annual General Meeting. It’s compulsory they hold this meeting within the first 9 months after it has celebrated its one-year incorporation anniversary. This may not directly be a form of renewal, but it’s also one of the annual obligations that businesses are expected to comply with. 

How To Renew Business Registration In Hong Kong: What Are The Steps?

Every Hong Kong company is expected to renew their business registration certificate to continue their business operations, but how to renew business registration in Hong Kong? Firstly, you’ll receive a renewal demand notice before the expiration of your current business registration certificate expiries. Renewing the certificate is relatively straightforward. All you have to do is pay the associated fee.

As part of the process of how to renew business registration in Hong Kong, there may be scenarios where you won’t receive a demand notice, or you may end up losing your note. When this happen, all you have to do is mail or take your old business registration certificate to the business registration office. You can make payment and renew this certificate when you get there. 

How To Renew Business Registration In Hong Kong: How Can We Help?

Most businesses do their best to stay compliant with government regulations on how to renew business registration in Hong Kong and file all the necessary documents requested from them. However, many struggle with coming up with accurate documents while others do not have the resources to file these documents while keeping up with daily activities. That’s where we come in. 

Premia TNC is a service provider that’s poised to provide professional services to users. We are a one-stop shop for different needs, including company formation, taxation, accountingcompany secretarial services, and more. We understand the importance of correctly handling administrative duties and have a professional team to help you out. 

How To Renew Business Registration In Hong Kong – Frequently Asked Questions

1. How do I pay to renew business certificate?

As part of the process of how to renew business registration in Hong Kong, you must renew your business certificate. Companies can pay to renew their business certificate through paper mail or electronic payments. The IRD recommends online payments to avoid any hassles or risk.

2. What is a business registration certificate?

As part of the process of how to renew business registration in Hong Kong, you must have a business registration certificate. The business registration certificate is issued by the business registration office and is a major requirement to run your business in Hong Kong.