First of all, all companies in Hong Kong, regardless of whether they conduct their activities in Hong Kong or abroad, must file tax returns. Tax statements are submitted as a completed and signed tax return (Profits Tax Return). Tax return is filed together with the financial report and the auditor’s report.
All companies registered in Hong Kong are required to submit an annual report on the activities of the company. There are different types of reports:
• Annual Return. This report should include the legal address of the company, information on partners and on the managers of a company.
• Financial Accounts, which must provide information about the financial transactions.
• Dormant Accounts, also called the “sleeping” because such statements must be submitted if the company didn’t operate actively.
We offer the services of professional accountants, certified in Hong Kong.
According to the local law, all companies registered in Hong Kong must maintain accounting based on established requirements. All transactions must be documented. The bookkeeping is usually maintained by an accountant of the client.
Financial statements must be submitted to the Tax Department (Inland Revenue Department) by set deadlines. To pass the audit you must provide full financial statements for the company, including the Balance Sheet, Statement of Income, Profit and Loss Report, Cash Flow with a detailed explanation and details of all transactions together with the accompanying documents. These statements must be made in full compliance with the requirements of the tax laws of Hong Kong.
All Hong Kong companies are required to conduct an annual audit for new companies; the first audit conducted no later than 18 months from the date of registration. Auditing in Hong Kong is generally not required unless the conduct of activities is in the territory of the Hong Kong or offshore in the form of an open joint stock company.
The right to provide such services is only given to Certified Public Accountants (CPA). During the audit, a complete verification of all financial statements of the company for a specified period takes place. Auditors prepare financial statements in conjunction with the conclusion that reflects their opinion on how well the recording was conducted in accordance with the laws of Hong Kong.
If you require accounting services offshore in Hong Kong, please contact us. Our specialists will be happy to provide you with professional assistance fast, simple and at a low cost.