Abstract: In addition to paying taxes, the annual return NAR1 must be submitted every year, what is the annual return? What information do I need to submit for an annual return? What does it do? Do all companies need to submit? This article will give you a detailed introduction to the definition, content and function of the annual return.
What is Annual Return NAR1?
Annual Return is an annual return NAR1 form that a local private limited company registered in Hong Kong must file every year, while a Hong Kong unlimited company is not required to file an annual return (only need to file the business registration certificate fee and tax return on time). It is the duty of both the company and its officers to comply with the requirements of the CO relating to the delivery of documents for early registration of the annual return to the Registrar of Companies within the prescribed time limit.
The annual return can be regarded as an annual medical examination of the Hong Kong company, and the annual return NAR1 is submitted to the Companies Registry at a specific time each year, and the Companies Registry will use the annual return to understand the company’s financial and legal operations to ensure that the company’s operations comply with the regulations.
In addition, the contents of the annual return are public records and can be consulted through the electronic search function of the Companies Registry, so the annual return is also a way to let partners and competitors know about your company.
What information must be submitted for the annual return?
Local private companies are required to register for the annual return submitted on Form NAR1 for each year, which can refer to the sample annual return, which states that you need to provide the following information:
1. Company name
2. Registered office address
3. The period covered by the financial statements
4. Share capital (if any)
5. Company Secretary Details
6. Details of Directors and Company Secretary
7. Details of the members of the company who own the share capital
8. Company Records
Even if the company’s information remains unchanged as last year, the annual return needs to be completed, otherwise the annual return will be returned to the company or the submitter and will not be counted as an annual return submitted.
The annual return of a public company or company limited by guarantee should be accompanied by a copy of the reporting documents relating to the financial year to be sent to each member of the company under section 430 of the Companies Ordinance, including the financial statements, the directors’ report and the auditor’s report in respect of the financial statements. Such copies must be certified as true copies by one of the directors or company secretary of the company.
What does an annual return do?
The annual return is one of the commonly used documents in companies and is very widely used because it contains the most up-to-date information, so it is often used in the following situations:
- Open a corporate account
- Mergers and acquisitions
- Transfer of shares
- Business transfer
- Bank loans
- Apply for government support
- Application for various types of licenses
- Business activities such as the signing of commercial contracts
- When it is necessary to prove the information of the shareholders, directors and company secretary of the company
The annual return is a corporate document that the company must deliver every year, as long as the company is not dissolved, it is required to deliver the annual return to avoid the need to invite late registration fees. Filing an annual return on time is usually a statutory liability statement for the directors or company secretary of the company. Click here to submit your annual return to learn more!
Langfeng Business Consultant Team provides one-stop business advisory services, providing services such as Hong Kong company registration, bank account opening, company secretarial and annual return filing, so that you can save energy and time and help you start your business blueprint!