New Companies Ordinances P.3: Changes to Annual Returns and Accounts

Annual Returns

Private Company: No change in the filing requirements, annual return should be filed within 42 days after the return date, i.e. the anniversary of the date of the company’s incorporation.

Public Company & Guarantee Company: If the financial year of a company begins before the commencement date of new CO and ends on or after that date, the annual return should continue to be filed within 42 days after the company’s return date. The return date for a public company is 6 months after the end of the company’s accounting reference period, and for a guarantee company, 9 months after the end of the company’s accounting reference period. The accounting reference period is the period by reference to which the company’s annual financial statements are to be prepared.

Note that late submission of annual returns for all types of companies stated above, is subject to higher registration fees, and an Annual Return in the form of a Certificate of No Change (Forms AR2 or AR3) will become obsolete and will not be accepted for registration under the new ordinances.

Accounts & Reports: A private company is qualified for simplified reporting if it satisfies any two of the following conditions if, a) Total annual revenue does not exceed HK$100 million, b) Total assets does not exceed HK$100 million, or, c) Average number of employees during the financial year does not exceed 100. You are advised to seek professional advice if you wish to prepare simplified financial statements and directors’ reports.

(Changes will be effective on 3rd March 2014)

Leave a comment

Your email address will not be published. Required fields are marked *