HK Accounting &Audit

Accounting, audit and tax are an evitable work that an entrepreneur has to handle as a corporate compliance. We have created a checklist to make business life easier. Decide Financial Year End It is a statutory requirement for a Hong Kong company to have the first audited accounts within 18 months from the incorporation date. It is common to have March, June, September and December. Once the financial year is decided, the same financial year end will carry on. Keep Operating Records In order to prepare accounting records, documents which include bank statements, contract, invoice, receipt, etc. have in an orderly fashion and be kept throughout the year. Prepare...

Under S379 Subdvision 3- Financial Statements of the Companies Ordinance Cap. 622, subsection (1) a company’s directors must prepare for each financial year statements. Subsection (4) further states that the director fails to take all reasonable steps to ensure compliance with subsection (1), the director commits an offence and is liable to a fine of HK$300,000. The financial statements have to be audited and file together with the tax return for reporting to the Inland Revenue Department (IRD). We certainly understand time is money for businessmen who may sometimes forget the statutory compliance and may be tempting to leave the accounting & auditing issues later. However,...

Hong Kong companies will receive the first profits tax return issued by the Inland Revenue Department (IRD) within 18 months of their establishment. The first tax return has to be filed together with the audited accounts within 3 months from its issuance date. Thereafter, year by year within 1 month from the return issuance date. It is a legal requirement for the director to prepare audited accounts regardless of whether the company has profits or not. In order to prepare the financial statements for auditing, the following information is needed: 1. Government documents: articles of association (only needed for the new company in the first year), business registration...