Compliance Guide
Annual Compliance Checklist.
Every Hong Kong company must meet ongoing compliance obligations. Missing deadlines results in penalties, fines, and potential prosecution. Here is everything you need to track.
At a Glance
Key Deadlines to Know
Five compliance dates determine whether your company stays in good standing. Miss any of them and penalties escalate quickly.
BRC Renewal
Before expiry — IRD sends notice ~1 month prior
Annual Return (NAR1)
Within 42 days of your incorporation anniversary
Profits Tax Return
First filing: 18 months after incorporation. Then annually in April
Employer's Return
1 month from date of issue — typically April each year
SCR Updates
Within 7 days of any change in significant controllers
Full Breakdown
Every Obligation, Detailed.
What it is, how much it costs, when it's due, and what happens if you miss it.
Business Registration Certificate (BRC) Renewal
Annual
HK$2,350
Before expiry date
Your BRC must be renewed every year. The Inland Revenue Department issues a renewal notice approximately one month before expiry. Failure to renew on time results in a penalty of HK$300.
Penalty for non-compliance: HK$300 late penalty + potential prosecution
Annual Return (NAR1)
Annual
HK$105
Within 42 days of anniversary of incorporation
Every Hong Kong company must file an Annual Return (form NAR1) with the Companies Registry. This return contains current information about the company's directors, shareholders, secretary, registered office, and share capital.
Penalty for non-compliance: Escalating fines from HK$870 to HK$34,500 + daily default fine
Statutory Audit
Annual
$800 – $2,000+
Before filing Profits Tax Return
All Hong Kong companies are required to have their financial statements audited by a Certified Public Accountant (CPA) licensed in Hong Kong. There is no exemption for small companies. The audit must be completed before the Profits Tax Return can be filed.
Penalty for non-compliance: Cannot file PTR without audit; potential IRD penalties
Profits Tax Return (BIR51)
Annual
$400 – $1,200+
First: 18 months after incorporation. Then: annually (1 month from date of issue, extensions available)
The Profits Tax Return must be filed with the Inland Revenue Department together with the audited financial statements and tax computation. Even if the company has no profits or is dormant, the return must still be filed.
Penalty for non-compliance: Penalties, surcharges, estimated assessments, potential prosecution
Employer's Return (BIR56A)
Annual (if applicable)
Included with tax filing
1 month from date of issue (usually April)
If your company has employees in Hong Kong (including directors receiving remuneration), you must file an Employer's Return reporting their compensation. This applies even if the employees are not HK residents.
Penalty for non-compliance: Fine up to HK$10,000 + potential prosecution
Significant Controllers Register (SCR)
Ongoing
Included with secretary
Update within 7 days of any change
Every company must maintain a Significant Controllers Register (SCR) at its registered office or a designated location in Hong Kong. The SCR identifies individuals or legal entities that have significant control over the company (typically 25%+ shareholding or voting rights).
Penalty for non-compliance: Fine up to HK$25,000 + daily default fine of HK$700
Record Keeping
Ongoing
N/A
Retain for 7 years
All business records, accounting records, invoices, receipts, bank statements, and contracts must be retained for at least 7 years. These records must be sufficient to explain all transactions and enable the company's financial position to be determined with reasonable accuracy.
Penalty for non-compliance: Fine up to HK$100,000
Estimated Costs
Total Annual Compliance Cost
A rough estimate of what you can expect to pay each year to keep your Hong Kong company in good standing. Government fees are fixed; professional fees are estimates.
Costs vary based on company complexity, transaction volume, and service provider. Government fees are fixed; professional fees are estimates.
Consequences
What Happens If You Miss a Deadline
Hong Kong penalties escalate fast. Small missed deadlines can compound into prosecution risk if left unaddressed.
BRC Lapse
Operating without a valid BRC is a criminal offence. Penalty starts at HK$300 but prolonged lapse can result in prosecution and the business being struck off.
Late NAR1
Fines scale from HK$870 to HK$34,500 depending on how late you file. A daily default fine is also imposed for ongoing non-compliance.
Missing Audit / PTR
Without an audit you cannot file the Profits Tax Return. The IRD can issue estimated assessments and impose surcharges. Continued default triggers prosecution.
SCR Non-Maintenance
Failure to maintain or update the register carries fines up to HK$25,000 plus a daily default fine of HK$700 for every day the breach continues.
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