How much does corporate and accounting compliance cost for each type of corporate vehicle used to invest in real estate?
All Hong Kong companies incorporated under the Companies Ordinance are required to file an annual return with the Companies Registry once a year. For private companies, the annual return should be made up to the anniversary date of the registration of the company in Hong Kong and filed with the Companies Registry within 42 days of that date, together with a filing fee. For public companies or companies limited by guarantee, the annual return should be filed within 42 days of the company's return date, ie six months (for public companies) or nine months (for companies limited by guarantee) after the end of the accounting reference period (ie the period by reference to which the company's annual financial statements are to be prepared) of the company.
For a private company, the filing fee for the annual return if delivered within 42 days of the relevant date is HK$105 (HK$140 for a public company; HK$105 for a company limited by guarantee). If filed after 42 days, the filing fee will rise incrementally to a maximum of HK$4,800 for a public company and HK$3,480 for a private company limited by share capital or guarantee depending on the number of days of delay.
Although private companies are required to prepare audited accounts, they need not submit them to the Companies Registry. Public companies (but not private companies) are required to submit their accounts together with their annual return to the Companies Registry.
Other recurring costs include maintaining the company secretarial function and a registered office, holding annual general meetings and producing annual accounts if and when required.
All non-Hong Kong companies registered under the Companies Ordinance are required to file an annual return with the Companies Registry once a year. The annual return should be made up to the anniversary date of the registration of the company in Hong Kong and filed with the Companies Registry within 42 days of that date, together with the filing fee. The filing fee for the annual return if delivered within 42 days of the relevant date is HK$180. If filed after 42 days, the filing fee will rise incrementally to a maximum of HK$4,800 depending on the number of days of delay. A certified true copy of the latest published accounts for a period of at least 12 months should generally accompany the annual return.
The recurring costs of producing annual accounts for the partnership should be taken into consideration.
Limited partnerships must also file any changes to their registered particulars with the Companies Registry within seven days. It costs HK$26 to register a statement of changes to the particulars of a limited partnership. Additional costs will be payable for changes in the sums contributed by any (new) limited partner (HK$8 for every HK$1,000 or part of HK$1,000 contributed by any (new) limited partner).
For a limited partnership fund, a filing fee of HK$105 is payable upon the filing of annual return. In addition, it costs HK$26 to file a notification of change in address, location of records and investment scope of limited partnership fund and HK$1,405 to file a notification of change of name of limited partnership fund.
A trust usually incurs annual administration costs, the amount of which will depend on the nature and activities of the trust. In the case of unit trusts, annual management fees and any performance-related fees may also need to be paid to the management company. Unit trusts authorized by SFC must also pay an annual fee to the Commission. The amount of this annual fee varies depending on the nature of the unit trust fund, for instance, the fee for a single fund is HK$6,000.