A Brief Guide For Hong Kong NAR1 Sample

A Brief Guide For Hong Kong NAR1 Sample

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Curious about how to prepare for annual return filing to HK Company Registry in Hong Kong? We will give you a quick overview of the NAR1 Sample. First of all, let me clarify what I like the best. The accomplishment of the Annual Return to Companies Registry is not an option but a legal duty. Owning a limited company in Hong Kong? Read the fast guide below to get an overview of the process.

What is NAR1 Form Function?

You have to comply with corporate compliance every year and pay a fee to renew your certificate of business registration. This is where your annual return comes into play. Consider it as a kind of driving certificate to be validated. You have to go through some hurdles and pass these checks in order to be able to operate your business legally.

The Form NAR1 plays the role of the foundation of a robust government database because it provides the key details of your company – from the company director and shareholders to the company’s official address and operations. The appointment of company secretary will prepare your annual returns and will be delivered to Companies Registry to be made public record.

NAR1 Sample

Importance of Company Secretary in Filing NAR1 Form

Individuals such as company secretaries, corporate secretaries, or compliance officers. They guard you from damaging consequences and avoid unnecessary expenses. After the incorporation of your company and the start of operational activities, you (and if any, other directors) should appoint a company secretary in Hong Kong.

In addition to ensuring there’s compliance with Hong Kong’s corporate law, a secretary is also the one who undertakes the other unglamorous tasks, such as documenting any operational, managerial or structural changes to your business. They are there to collect and authenticate everything necessary for the timely submission of your annual tax return and are just as liable as you are for the accuracy of the information.

What Is The Due Date For My Annual Return?

As the name suggests, it’s an annual requirement. The first day of your company’s incorporation should have the NAR1 form filed within 42 days and the registration fee paid. Although your company can remain the same year after year without providing information about any changes, this submission remains obligatory. Regarding fees, here’s what applies to different types of companies:

Public CompanyHKD140
Company Limited by GuaranteeHKD105
Private CompanyHKD105

The Preparation Of Annual Returns NAR1 Form

Whether you want to submit your annual return online or through regular mail, that all depends on your personal preference and convenience. This document preparation process might be overwhelming, but there’s always the option of seeking help to focus on the daily business operations.

Below are various methods for submitting your annual return:

Submit Hard Copy:

If you like this method then the first step is to download your NAR1 form. It is switched on both in English and Chinese but choose the option that suits you best.

Then, once you have already filled in all the details, you will be required to get it signed by a director or company secretary after which you will print it.

Thereafter, you can mail it to the Companies Registry or hand it over in person, as per your preference. Read Filing Requirements of a  Local Limited Company  after Incorporation. It gives here a useful outline of the filing requirements.

Submit Electronically via E-registry:

The Company Registry offers an electronic filing service that can be accessed 24/7.

This will only require you to sign up on the platform through which you will be able to view a list of the documents you need to file your annual taxation returns online.

Understand the e-Registry in more detail and learn how to sign up for this service.

Profits Tax Return vs Annual Return (NAR1)

Profits Tax Return:

  • This serves only as a copy that is presented to the Companies Registry, which is the place where your company’s particulars are recorded (this is why you need to include so much information such as address and even shareholders).
  • However, the financials of your company do not have to be part of this submission.

Annual Return:

  • This is a document which you submit to HK government for taxation purposes.
  • Every company which is registered in Hong Kong must submit the PTR along with all the audited accounts to IRD in the same way as other.

What Information Will Be Needed To File My NAR1 Form?

We have already begun to scratch the surface of it, now let’s dig a bit deeper. It is the business plan description that deserves to be treated with great care and admit all the important information as detailed as it is possible. Below are some mandatory aspects of what you can expect to include:

  • The registered name of your company (ie. what you call it)
  • The business identification number is where your business is registered
  • Personal details of individuals: This includes information about shareholders, corporate secretary details, and directors.
  • Share capital and shareholder details: This section requires unpacking and substantiation, providing detailed information about individuals holding shares.

Please ensure that all records are unambiguous since significant changes to the particulars of your company may have an impact on the above and you’ll also need to disclose those.

Required Documents for Substantiating Information

Certainly, if you’re furnishing the mentioned details, you’ll need to substantiate them with supporting documents. Here’s a list of certified copy documents required for this purpose:

  • Certified copies of director and shareholder ID cards,
  • Original, signed copies of Annual Return Filing Forms,
  • Certified copy of Incorporation Certificate,
  • Certified copy of Company Business Certificate,
  • Certified copy of Company Memorandum and Articles of Association (M&A),
  • Company Incorporation Papers (D1, D3, R1 Forms)

Late Filing Fees for Annual Return NAR1

As has been stated in the section 662 of the Companies Ordinance, you will be liable to the heavy penalties and the chance of being prosecuted. It is paramount to turn in your audited return by the due date in order to sidestep the hefty fines (or worse, prosecution for breach of the Companies Ordinance). As time goes by, the fee that you are required to pay will continue to increase. Take a look:

Date of DeliveryMonths Since Company IncorporationPenalty
42+ days>3HKD 870
3+ months>6HKD 1,740
6+ months>9HKD 2,610
9+ months+9HKD 3,480

For a local private company, the maximum penalty you could face is HK$50,000, with an additional daily fine of HK$1,000 if the breach of terms persists.

Methods of Submitting Your Annual Return

Hard Copy: If you choose this option, you’ll have to print the NAR 1 form that you will then post along with a signed copy to the Companies Registry. The given PDF offers brief details of the filing duties.

Electronic Form: The Companies Registry offers an online filing which may be done anytime. Take a tour of the e-Registry Website to discover how you can join our service.

Signed, Certified, Delivered

This is an easy-to-read brief guide that demystifies the who, what, and how Hong Kong’s Companies’ Ordinance works for business owners filing their annual returns.

How Can FastLane Help You?

FastLane Group gives all necessary assistance for the submission of your annual return in Hong Kong. As your corporate services provider of trust, we handle all administrative duties, satisfying requirements of regulatory authorities as well as meeting deadlines. Through our skills, you can concentrate on your business processes while we handle the annual return filing procedure with no worries and without paying extra penalties.

If you still have any concerns about filing your tax returns in Hong Kong, contact us so we can assist you with the process.