Feeling overwhelmed and anxious? 
Running a small business in Hong Kong is tough enough, but trying to navigate all the Companies Ordinance requirements is justβ¦ crushing. I’m so scared of messing up the annual return filing, especially with those scary fines (up to HK$50,000?! 
). What if I miss the deadline?! 
Itβs due so soon β within 42 days of the companyβs incorporation anniversary! 
Who Will Be Fined?
If you fail to comply with the annual return requirement, both the company and every responsible person (including directors and company secretaries) are liable to prosecution and, if convicted, fines. The maximum penalty per breach is HK$50,000, with a daily default fine of HK$1,000 for each day the default continues 
.
Why Asking a Friend to Act as Company Secretary for Free Isn’t Wise
While it might seem like a cost-effective option, asking a friend to act as a company secretary without proper experience can lead to more problems than solutions. Hereβs why:
Lack of Expertise: A company secretary needs to be well-versed in legal and regulatory matters, including tax compliance, maintaining statutory records, and ensuring compliance with the Companies Ordinance 
.
Risk of Non-Compliance: If your friend misses a deadline or makes a mistake, you could face severe penalties, including fines and even prosecution 
.
Liability: As a director, you are still responsible for ensuring compliance, even if someone else is acting as the company secretary. This means you could be held personally liable for any breaches .
Seek Professional Help
Don’t risk your business’s future by trying to navigate complex regulations alone. Consider hiring a professional company secretary or using a service provider who is experienced and knowledgeable about Hong Kongβs regulatory environment 
.
Key Responsibilities of a Company Secretary
Tax Compliance: Ensuring tax returns are filed correctly and on time .
Legal Records: Maintaining statutory records and ensuring compliance with the Companies Ordinance 
.
Meetings and Governance: Conducting and participating in board meetings, advising on corporate governance matters .
Stakeholder Communication: Acting as a liaison between the company and government agencies 
.
Stay Compliant, Stay Safe
Don’t let compliance issues weigh you down. Stay ahead of deadlines and ensure your business remains in good standing with the Companies Registry .
Share Your Experiences! 
Have you ever faced challenges with annual return filings? How did you manage? Share your stories and advice in the comments below!
Stay Informed, Stay Successful! 
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