How to maintain a Hong Kong company after registration? Read more in one article!

Registering a Hong Kong company is the first choice for many mainland enterprises to go to the international market because Hong Kong, as a free trade port, not only has fewer tax types and lower tax rates, but also can freely receive foreign currency payments, providing a favorable business environment for enterprises.

However, company registration is only the first step towards success, and later company maintenance is equally important.

In this article, we will elaborate on the main maintenance work after Hong Kong company registration to help entrepreneurs better manage and maintain their businesses.

After the successful registration of a Hong Kong company, a series of maintenance measures need to be implemented to ensure its legal operation and sound development.

1. Bank account management

Open an account:After the registration is completed, the company should quickly choose a suitable bank to open an account to facilitate the operation of funds. When opening an account, it is necessary to have the company's certificate of incorporation, business registration certificate, directors and shareholders' identification, articles of incorporation and other information to submit to the bank for review.

Account Maintenance:After opening an account, you are required to log in regularly to check transaction records and balances to ensure the security of your account. Respond to notices and inquiries from the bank in a timely manner and follow the bank's regulations. Keep your account active to avoid freezing or closure due to long periods of no transactions.

2. Annual Review and Annual Filing

Hong Kong companies are required to undergo annual audits every year, which include renewing the Business Registration Certificate (BR document) and filing the annual return. The annual audit is the basis for the legal existence of the company, and failure to complete it on time may result in fines and anomalies in the status of the company.

A Hong Kong company is required to file an annual return and renew its Business Registration Certificate (BR document) within 42 days after the date of incorporation. Thereafter, it is required to update the company information and file a new annual return with the Hong Kong Companies Registry every year.

Specific processes include:Preparation of return, renewal of Business Registration Certificate, submission of annual return, payment of annual fee. Fines for late filing start at HK$1,170 and increase over time.

3. Tax registration and auditing ......................

Upon completion of the registration of a Hong Kong company, it is necessary to register with the Inland Revenue Department of Hong Kong for tax purposes, obtain a tax identification number, and conduct an audit and file a tax return.

Hong Kong companies need to be audited every year, and commissioned to Hong Kong certified public accountants to audit the company's financial statements and issue audit reports as the basis for filing tax returns. Even if there is no business activity, a "zero return" audit is required. Failure to file a return after the due date will result in a fine.

The audit process includes:Preparation of financial statements, appointment of auditors, provision of audit documents, audit process, issuance of audit report, confirmation of signatures by directors, submission of audit report.

4. Maintenance of Corporate Compliance Documents

Under Hong Kong law, a company is required to appoint a statutory secretary who is responsible for handling communications between the company and the government, including the filing of documents (e.g., annual returns, profits tax returns, audit reports, register of directors and shareholders, etc.) and updating of business registration certificates. The statutory secretary is required to ensure that company documents are up-to-date and properly maintained.

5. Disclosure of Information and Notification of Changes

Under Hong Kong company law, a company may be required to disclose certain information, such as information on material controllers, to be kept at a fixed address in Hong Kong for inspection by the Government.

In the event of a major change in the company (e.g. change of directors, shareholders, address, name), it is necessary to notify the registrar and the tax office of the change in a timely manner and go through the procedures for the change.

6. Compliance with laws and regulations

A Hong Kong company should ensure that its business activities comply with Hong Kong's commercial laws, labor laws, tax laws and other laws and regulations. The company should establish a sound risk management system and internal control system, review internal processes regularly, and identify and control potential risks.

Registering a Hong Kong company is only the first step towards success, and the maintenance of the company at a later stage is equally important.

Entrepreneurs need to fully understand and comply with Hong Kong's company law and tax regulations to ensure the legal operation and standardized management of their companies.

Only by doing a good job of these maintenance work, Hong Kong companies can develop steadily on the track of legal compliance, make full use of Hong Kong's commercial advantages, expand business in the international market, realize the company's strategic objectives and create good economic and social benefits.