Introduction
Running a company in Hong Kong comes with responsibilities. One of these is filing the Annual Return NAR1.
If you are new to managing a business, you might feel confused about what NAR1 is and why it matters. Don’t worry. In this guide, we will break it down for you in simple terms.
We’ll explain why filing the Annual Return is important, who needs to do it, and how you can handle it without any stress.
What is an Annual Return NAR1?
What is Form NAR1?
Form NAR1 is a document that every Hong Kong company must submit to the Companies Registry every year.
It is not a tax return. Instead, it is a report that updates the government with your company’s latest information.
Why Companies Must Submit It
The government needs to keep correct records about every company operating in Hong Kong.
Filing the NAR1 ensures that your company’s information is accurate, up-to-date, and publicly available.
Information Included in the NAR1
When you fill out the NAR1 form, you need to provide:
- Your company name and registration number
- Details about your share capital
- Names and addresses of your directors and company secretary
- Your registered office address
It’s basically a snapshot of your company’s main details at a point in time.
Who Needs to File an Annual Return NAR1?
Companies Required to File
If you run one of these types of companies in Hong Kong, you must file NAR1:
- Private companies limited by shares
- Public companies
- Guarantee companies
No matter how small your business is, you must still comply.
Companies Exempted from Filing
Some companies do not need to file an annual return.
For example:
- Dormant companies that meet the conditions under the Companies Ordinance.
If your company is officially dormant, you might be free from filing.
When Must the Annual Return NAR1 Be Filed?
Filing Deadlines
- Private Companies must file within 42 days after their incorporation anniversary each year.
- Public Companies and Guarantee Companies have different timelines, usually based on the Annual General Meeting date.
Special Rules for Newly Incorporated Companies
- If your company is new, your first NAR1 filing is especially important.
- Mark your calendar based on your incorporation date to avoid missing it.
What Happens If You Miss the Deadline?
- You will face late filing fees.
- You risk prosecution under the Companies Ordinance.
- Your company’s reputation may suffer because filing records are public!
Tip: Always file early to avoid these problems.
Step-by-Step Process to File Your Annual Return NAR1
Preparing the Required Information
Before filing, gather all the important documents:
- Company registration certificate
- Current directors’ and secretary’s information
- Updated registered office address
- Share capital structure
Make sure everything is correct.
Completing the Form NAR1
- The form is easy but detailed.
- Double-check every section carefully.
- Avoid errors, especially in names, addresses, and dates.
Submission Methods
You have two ways to submit:
- Online through the e-Registry portal
- In-person by submitting at the Companies Registry Office
Online filing is faster and more convenient.
Fees for Filing Annual Return NAR1
Standard Filing Fees
The fee depends on when you file:
- Filing on time is cheaper.
- Late filing attracts extra fees.
Late Filing Penalties
The later you file, the higher the penalty:
- 1 month late = higher fee
- More than 6 months late = much higher fee
Always file early to save money and avoid stress!
Common Mistakes to Avoid When Filing Your NAR1
Inaccurate or Outdated Information
Wrong data can cause big problems.
Always update:
- Director changes
- Secretary changes
- Office address changes
Forgetting to Report Changes
If your company changes directors, shareholders, or address, you must update the NAR1 too.
Missing the Deadline
Filing late means:
- Heavy fines
- Potential legal action
- Damage to your company’s public image
Role of Company Secretaries in Annual Return Filing
How a Company Secretary Can Help
A company secretary:
- Reminds you of deadlines
- Prepares and files the NAR1 accurately
- Keeps company records updated
Do You Need a Company Secretary for NAR1 Filing?
In Hong Kong, every company must have a company secretary.
You can hire:
- An individual living in Hong Kong
- A licensed professional services firm
Many businesses prefer hiring professional firms for peace of mind.
FAQs About Annual Return NAR1 Filing
Is Annual Return the Same as Tax Return?
No, they are different.
- NAR1 reports company structure.
- Tax Return reports your company’s income to the Inland Revenue Department.
Can I File NAR1 Myself?
Yes, if you are confident and understand the process.
But if you are unsure, it’s safer to hire a professional.
What If My Company Is Dormant?
Even dormant companies must maintain certain filings.
Always double-check if you qualify for exemption under the law.
Resources and Support for Filing Annual Return NAR1 in Hong Kong
Official Resources
- Companies Registry Website: Offers forms and guides
- e-Registry Portal: For online filing and payment
Professional Service Providers
You can also work with:
- Corporate secretarial firms
- Accounting and legal firms that handle company compliance
They make the process easier and ensure no mistakes.
Conclusion
Filing your Annual Return NAR1 is a simple but important task.
It keeps your company legally compliant and in good standing.
Stay organized, mark your calendars, and file on time!
If you are unsure, it’s always a smart move to get professional help.
Following these steps will save you from fines, stress, and last-minute panic.
Happy filing!
