Responsibility to Submit Annual Returns on Time
Late submission of the Annual Return can result in a series of consequences. In Hong Kong, each company director, secretary, and manager has the responsibility to ensure the timely submission of the annual report. If they fail to submit the annual report within the stipulated time, they will bear legal responsibility. According to the regulations of the Companies Registry of Hong Kong, if the annual report is not submitted within the stipulated period, a certain fine will be imposed. The specific amount of the fine varies according to the delay time.
Penalty Rates for Late Submission
For example, for local private companies with capital, if the annual report is submitted within 42 days after the company's return date, the fee is HK$105. If it is submitted more than 42 days but within 3 months after the return date, the fee is HK$870. If it is submitted more than 3 months but within 6 months, the fee is HK$1,740. If it is submitted more than 6 months but within 9 months, the fee is HK$2,610. If it is more than 9 months, the fee is HK$3,480.
Maximum Penalties for Non-compliance
In addition to these fines, if the annual report is not submitted within the stipulated time, the maximum fine for each violation will be HKD 50,000, and there will also be a daily default fine of HKD 1,000.
Consequences of Late Submission and the Importance of Compliance
Therefore, the consequences of late submission of the annual report may include fines, legal responsibilities, and potential damage to the company's reputation. To avoid these problems, companies need to ensure that they submit all necessary documents within the appropriate time.