We are a small private company and have not traded in the past years. Why do we still have to file annual returns?

Unless your company has declared dormant under the Companies Ordinance, every live private company registered under the Companies Ordinance is required to comply with the requirements of the Companies Ordinance, including the delivery of an annual return together with the requisite registration fee within 42 days after the anniversary of the date of incorporation of the company in each calendar year.