ANNUAL MAINTENANCE COSTS OF
A HONG KONG PRIVATE COMPANY LIMITED BY SHARES

Annual Maintenance Costs

The basic annual costs to maintain a Hong Kong company in good standing are estimated to be around USD1,405.00. In particulars, the annual maintenance costs consist of the following items:

Items with fixed fees (minimum cost):
1. Annual retainer for acting as Company Secretary: USD275 (note 1)
2. Registered Office fee: USD175 per annum (note 2)
3. Payment of Business Registration Fee: USD335 (subject to change by the Government)
4. Annual Return statutory filing fee: USD15 (subject to change by the Hong Kong Government)

Items with variable fees:
5. Book-keeping fee: NIL if not operating; fees to be determined according to the nature of business and number of transactions.
6. Fees for Statutory Audit (Note 3): USD500 if operation is minimal; exact fee will be determined according to a number of factors, such as the nature of business and amount of turnover etc.
7. Filing of Profits Tax Return: USD75
8. Filing of Employer's Return: USD30

Seel also: Employer's Return, Profits Tax Return, Accounting Services

Note:

1. The annual retainer for provision of Company Secretary covers the following services:

(1) Provision of one Corporate Company Secretary (Kaizen Secretaries Limited acts as Company Secretary);

(2) Preparation and filing of Annual Return; Annual Return statutory filing fee is charged separately;

(3) Filing of notice of change of registered office and business address; preparation of minutes;

(4) Filing of notice of change of directors and secretary.

(5) Updating of Register of Directors and Register of Members

2. The annual cost for provision of Registered Office covers the following services:

(1) Provision of one street address as Registered Office of your Hong Kong company;

(2) Forward government mails to any location specified by clients. Please note handling fee of USD4 plus actual postage will be charged for each batch of mails forwarded.

(3) Please note the Registered Office is not to be used for business purpose unless otherwise agreed by Kaizen.

3. Annual Accounts/Directors’ Report

All private companies limited by shares incorporated in Hong Kong must maintain proper books of accounts and arrange a profit and loss account and a balance sheet for the company must be audited by Hong Kong registered auditors and laid before the shareholders in general meeting within 18 months of incorporation and then at least once in every calendar year. There are lengthy and detailed provisions in the Companies Ordinance regarding the types of accounts to be prepared and we can supply further details on request. Generally, Hong Kong private companies having a share capital are not required to file their accounts with the Registrar.

A directors’ report must be prepared in conjunction with the annual accounts. The Companies Ordinance provides a list of what this report should contain and this list includes details of contracts with the company or certain companies with which it is associated which are significant in relation to the company’s business and in which any director has a material interest.