After setting up a Hong Kong Limited, the company filings do not end there. Yearly, you are required to arrange renewal of your company including annual return and profit tax return as well.
Annual Return
As per the rules in the Companies Ordinance, each of the Hong Kong companies has to file the Annual Return regularly every year in the prescribed form. The form that is used is called the NAR1 form. The contents of this form include the particulars of the issued share capital, registered capital, registered office, secretary(s), director(s), shareholder(s), etc.
The annual return has to be filed within 42 days of the anniversary date of the incorporation of the company every year, and it is a compulsory obligation. In case a person forgets to file the annual return, they would be liable to pay the late fines depending on how late the filing has been done.
Profit Tax Return
Submission the Profit Tax Return, it doesn’t mean you have to pay tax. As the tax amount will be computed by the profitability for the year. It is normal for a company to get its first profits tax return within the 18 months since the commencement date of the business. After that, the next tax return forms would usually be issued on the 1st of April each year (or the first working day of April every year.)
Along with this, an audit report has to be attached. In the next years, in case there is no tax representative to act on its behalf for submitting the form for an extension, the company has to file the tax return within a month.
Renewal of Documents
Each year, when renewing a company, it’s common for any Hong Kong Limited to keep a record of the below docunments.
Business Registration Certificate
NAR1 (Filled Annual Return Form)
Client Due Diligent Acknowledgement
ND2A (Notice of Change of Company Secretary) – if applicable
NR1 (Notice of Change of Address of Registered Office) – if applicable
How Centre O can assist you on the renewal?
Centre O provides one-year Registered Address Services including fax and telephone number. We can assist to handle government letters and phone calls. Also, Centre O is a licensed TCSP agent to provide qualified Company Secretary Service. And then we can assist to file Profit Tax, Employer’s Return and Personal Salary Tax. The one-stop service to help you sort out all the annual renewal matters.
With the increasingly connected world, financial crime is a growing global issue. The banking institutions will keep updating your company information regularly. The regular checking is called Know-Your-Client, you have to response the KYC properly and in a timely manner.
What is KYC?
KYC means Know Your Client and sometimes Know Your Customer. This check is the mandatory process of identifying and verifying the client’s identity when opening an account and periodically over time. In other words, banks must ensure that their clients are genuinely who they claim to be.
Why banks need to arrange this check?
The objective of KYC guidelines is to prevent banks from being used, by criminal elements for money laundering activities. It also enables banks to understand its customers and their financial dealings to serve them better and manage its risks prudently.
What documents are required by the bank?
Normally, the bank requires a certified ownership structure chart. The chart needs to certified by appropriate officer such as Director, Company Secretary or similar function. Also, the chart should with date and full name printed percentage shareholding, the country/territory of incorporation, the country/territory of business address of each Intermediate Owner up to the Beneficial Owners of the company.
Secondly, the bank may require a business proof, for example, the recent sales invoices and expense. If you are running a trading business, then you have to show your logistic arrangement such as a full set shipping document including shipping invoice, packing list, airway bill and so on.
Last but not the least, the bank may contact you again for additional information after reviewing.
Financial crime is becoming critical. Entrepreneurs have to protect themselves and their businesses, which are not falling into the crime. Then we have to implement an array of Know Your Customer (KYC) measures. Hence, 2 questions must be asked, which are source of funds and source of wealth.
What is Source of Funds (SoF)?
SoF refers to the origin of the money being used in a particular transaction or series of transactions. This is an important consideration in the context of business relationships and one-time transactions, as it helps to ensure that the funds being used are legally obtained and not the result of illegal activity. Understanding the source of funds is also important for compliance purposes, as it helps to ensure that a company or individual is not handling or facilitating the movement of illicit funds.
What is Source of Wealth (SoW)?
SoW refers to the origin of a client’s entire financial assets. This includes the economic, business, and/or commercial activities that significantly contributed to the client’s overall net worth or total assets. In order to understand the source of wealth, it is important to consider how and why an individual has acquired their overall assets, as well as how they were generated or accumulated. This information can be obtained by reviewing relevant documentation and evaluating the client’s financial history. By understanding the source of wealth, it is possible to get a clearer picture of a client’s financial situation and make informed decisions about potential business relationships or transactions.
What is the difference between SoF and SoW?
SoF focuses on understanding how and where the client obtained the money for a particular transaction. While SoW examines the client’s overall financial position and how they have accrued their total wealth. Thus, both are separate from one another and should be treated as such. In higher risk circumstances, it is crucial to gather evidence for both Source of Funds and Source of Wealth. This helps to ensure that the evidence collected for one transaction is not reused to fund another, and that all transactions are thoroughly investigated and well-documented.
Why Bank approach you regularly?
As bank is one of the financial institutions, it is the obligation to take all the reasonable measures for example updating your information. So, the bank requires implementing KYC to understand you and your business activities. In order to ensure that proper safeguards exist to mitigate the risks of money laundry and terrorist funding.
A brand kit is a collection of the visual elements of your brand: the colour palette, logo(s), and typography. It also known as a brand style guide or brand guidelines. It is a document that outlines the visual and stylistic elements of a brand. So branding kit serves as a reference point for maintaining consistency in all brand communications both online and offline.
What is including in a Branding Kit?
LOGO
The branding kit includes guidelines on logo usage, variations, sizes, and clear space requirements. Then the guideline ensures that the logo is always displayed correctly and consistently across all platforms. No matter the logo is in online or offline materials.
Colour Palette
Colour Palette specifies the primary and secondary colours that represent the brand. The branding kit includes color codes (such as HEX, RGB, or CMYK values) to ensure color consistency in all brand materials.
Typography
The branding kit defines the fonts or typefaces used for headings, subheadings, body text, and other elements. It includes guidelines on font sizes, styles, and spacing to maintain a consistent look and feel.
Imagery
Guidelines on the types of images and graphics that should be used to represent the brand. This may include photography style, illustration guidelines, image quality, and usage rights.
Voice and Tone
Defines the brand’s personality, voice, and tone of communication. It provides guidelines on the language style, messaging, and tone of voice to maintain consistency in brand messaging.
Iconography
Specifies any custom icons or symbols that are part of the brand identity. Guidelines on when and how to use these icons are included in the branding kit.
Design Elements
Other design elements such as patterns, textures, or graphic elements that are part of the brand identity are outlined in the branding kit.
Usage Guidelines
Instructions on how to apply the branding elements across various materials, including digital platforms, print materials, merchandise, and more.
Is it important to prepare a branding kit?
A branding kit is to consolidate all of your brand’s design assets so that they can be easily accessed and reproduced both internally and externally. So, providing a comprehensive set of guidelines for visual and stylistic elements. It ensures that all brand communications are cohesive, consistent, and aligned with the brand’s identity and values. It helps maintain brand recognition, build trust with customers, and establish a strong and memorable brand presence. As we know visual consistency helps strengthen your company’s image with its audience and makes your brand feel familiar over time.
If your business is set up in Hong Kong and your wanted to open a business bank account. Then most of the bank can provide remote account opening platform via your mobile phone app. Thus, you can apply anytime, anywhere by using the remote account opening service.
Step 1
Visit your preference bank website.
Step 2
Create a profile and fill in the online form.
If you are eligible for using Remote Account Opening service. Then you can follow steps 3 and 4 to upload the required documents and complete your application. Otherwise, the bank will pass your information to business centre. And you can continue with your application there.
Step 3
Download the bank mobile app to verify your identity
Step 4
If you application is approved. Register for Business Internet Banking and activate Mobile Security Key. Then you can manage your account online or by using the mobile app.