Hong Kong, August 13, 2025 – Over 600,000 Hong Kong companies must file the NAR1 Annual Return annually to comply with the Companies Ordinance. Errors or late submissions can lead to hefty fines. This concise guide by PAT CPA outlines the 2025 NAR1 requirements, key changes, and tips to avoid common mistakes.
Why NAR1 Matters
The NAR1 Annual Return is a mandatory filing for all Hong Kong limited companies to update company details and ensure legal compliance. It maintains transparency and prevents penalties, which can reach HK$3,480 for late filings.
Benefits of This Guide:
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Step-by-step filing instructions
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2025 updates and requirements
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Top 10 errors and how to avoid them
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Practical checklist and tools
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Cost-saving tips
Key 2025 Updates
Since December 2023, new rules apply:
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8-Digit BR Number: Use the 8-digit Business Registration (BR) number as the Unique Business Identifier (UBI).
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Business Nature Code: Select a standardized code based on primary revenue sources.
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Email Requirement: Provide a valid company email.
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ID Number Privacy: Only partial ID numbers (e.g., first 4 digits) are required.
Filing Deadlines and Penalties
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Deadline: Within 42 days of the company’s anniversary date (e.g., January 15, 2025 → February 26, 2025).
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Penalties:
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Up to 3 months late: HK$870
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3–6 months: HK$1,740
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6–9 months: HK$2,610
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Over 9 months: HK$3,480
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Severe cases: Up to HK$50,000 + HK$1,000 daily.
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Preparation Checklist
Gather these documents:
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Company Registration Certificate
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Business Registration Certificate (8-digit BR number)
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Articles of Association
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Latest board resolutions
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Shareholder register
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Registered address proof
Director and Secretary Details:
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Names, partial ID numbers, addresses, nationality/place of incorporation, and appointment dates.
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Shareholder Details: Shareholding percentage, share types, and contact updates.
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Business Nature Code: Choose a specific code (e.g., 47190 for general retail) from the official table.
Step-by-Step Filing Guide
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Company Details: Enter exact company name, 8-digit BR number, and registered address.
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Directors: List all directors’ details, including appointment/cessation dates.
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Company Secretary: Provide details of the secretary (individual or corporate).
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Share Capital: Specify issued share capital and shareholder details.
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Significant Controllers: Confirm the Significant Controllers Register (SCR) is maintained.
Top 5 Common Errors to Avoid
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Wrong Company Number: Use the 8-digit BR number, not the old 7-digit CI number.
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Incorrect Business Code: Select a precise code matching your main revenue.
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Incomplete Director Data: Ensure all director details are current and accurate.
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Shareholding Errors: Verify share percentages total 100%.
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Missing Email: Provide a valid, monitored company email.
Submission Options
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Electronic Filing: HK$105 (private companies), instant confirmation, requires digital certificate.
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Mail/In-Person: HK$105, 5–10 days processing, no digital certificate needed.
Payment: Use credit card (electronic), bank transfer, check, or cash (in-person).
Post-Submission
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Save confirmation documents.
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Update internal records.
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Set reminders for next year’s deadline.
Expert Tips
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Create a compliance calendar.
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Maintain accurate records.
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Consider professional services like PAT CPA for complex cases.
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Monitor regulatory updates at patcpa.com.hk/en.
Take Action: File your NAR1 on time to avoid penalties and ensure compliance. Contact PAT CPA for expert assistance.
