Business laws

Business laws in Hong Kong

Hong Kong is light on tax but strict on corporate housekeeping: every company files an annual return and an audited set of accounts.

Quick answer

Every company files an annual return within 42 days of its incorporation anniversary, renews its Business Registration yearly, has its accounts audited, keeps a significant controllers register, and enrols staff in the MPF.

Verified Oct 2026 · Companies Registry

Company formation Corporate tax Business laws Free zones Banking Visas

Annual return

42 days

Audit

Every year

SCR

Required

Pension

MPF

Obligations calendar

The filings and duties that run every year.

Obligation	When	Who
Annual return (NAR1)	Within 42 days of anniversary	Company secretary, to the CR
Business Registration renewal	Yearly	Company, to the IRD
Audited financial statements	Every financial year	Hong Kong CPA
Profits tax return	As issued by the IRD	Company
MPF contributions	Monthly, for staff aged 18-64	Employer

Employment basics

Written terms under the Employment Ordinance
Statutory minimum wage
MPF: 5% from employer and employee, capped
Statutory holidays and paid annual leave
Notify the IRD of new hires and leavers
Personal data handled under the PDPO

How it works in practice

The annual return

Filed by the company secretary within 42 days of the anniversary of incorporation. Late fees rise in steps and can reach several thousand Hong Kong dollars.

Keeping registers

The register of members, directors and significant controllers must be kept at the registered office and updated within set deadlines.

First employee

Register with the IRD, enrol the employee in an MPF scheme within 60 days, and take out employees’ compensation insurance.

Editor's note

The annual audit is not optional, and it is not cheap. Build it into your budget from day one and choose bookkeeping that an auditor can read without starting from scratch.

Before you start

Annual return date in the calendar
Significant controllers register at the registered office
Auditor engaged
MPF scheme chosen before first hire
Employees’ compensation insurance quoted

What to watch

Late annual returnsFees rise steeply the later the return is, and repeated failure can lead to prosecution.

SCR at the officeThe significant controllers register must be kept at the registered office and shown to officers on request.

Audit cost scalesEven small companies pay for a full audit; budget for it from day one.

Common questions

Can a small company skip the audit?

No. Hong Kong has no small-company audit exemption; every company needs an auditor.

Who must be in the SCR?

Anyone with more than 25% of shares or votes, or the right to appoint most directors.

Does the PDPO apply to foreign owners?

Yes, if you collect or use personal data in Hong Kong.

Local terms

NAR1: Annual return form.
SCR: Significant controllers register.
MPF: Mandatory Provident Fund.
PDPO: Personal Data (Privacy) Ordinance.

Primary sources

Companies Registry: annual returns↗Labour Department: Employment Ordinance↗MPFA: employer duties↗

Next stepDocument checklistWhat a Hong Kong company keeps on file each year.CompareBusiness laws across all countriesFiling duties and audit rules side by side.

Business laws in other countries