Annual examination for the company is carried out by each incorporated company in accordance with the rules and regulation of the place of incorporation. This helps them to qualify for their business operation on the current basis. Requirements of the examination differ from place to place.
Annual examination for the company that are situated in Hong Kong
According to the Hong Kong law, a company in Hong Kong needs to carry out annual examination on the day of its incorporation anniversary so that it functions legally. The company needs to draft constitutional documents to the government, prepare declaration for the yearly general as well as board meetings. All this is done with respect to the law of the country. Professional consultant can be hired to conduct the exam. These consultants assess the risk and give particular advices to improve the finance of the company.
What are the procedures of annual examination for a company?
The procedures included are
- To sign the annual report that has been file
- Conduct annual examination
- Renew the certificate of trade registration
- Deliver annual return of the company
What is covered under annual examination?
- Annual return of the company is declared
- Trade registration certificate is renewed
- The authorities like secretary are re appointed
- The address of the registration is also renewed
The examination has to be conducted with t42 days of the anniversary of the registration every year.
Penalties for not conducting of the annual examination of the company
Late examination are fined as follows
- If the examination is conducted after 42 days but within 3 months of the date of registration anniversary then the penalty fined is 870 HK$
- If the examination is conducted after 3 months but within 6 months of the date of registration anniversary then the penalty fined is 1,740 HK$
- If the examination is conducted after 6 months but within 9 months of the date of registration anniversary then the penalty fined is 2,610 HK$
- If the examination is conducted after 9 months of the date of anniversary registration then the late penalty incurred is 3,480 HK$
- If the examination is conducted after 30 days of date of anniversary registration then the fine incurred is 33HK$
Hence a professional help and advice is must for any company to carry out its daily operation smoothly.