Auditing Services
According to section 122 of Chapter 622 of the Hong Kong Companies Ordinance, a limited company established in Hong Kong needs to appoint a certified public accountant to conduct an annual audit and submit an audit report signed by the certified public accountant.
Auditing reason and applications
Why you need auditing services?
First, meet the requirements of the Hong Kong Companies Ordinance:
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According to section 122 of Chapter 622 of the Hong Kong Companies Ordinance, a limited company established in Hong Kong needs to appoint a certified public accountant to conduct an annual audit and submit an audit report signed by the certified public accountant.
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According to Section 379 of Chapter 622 of the Hong Kong Companies Ordinance, all directors of Hong Kong limited companies must prepare financial statements for each financial year, otherwise fines will be incurred.
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According to sections 379 to 387 of Chapter 622 of the Hong Kong Companies Ordinance, the directors of a limited company must prepare statutory financial statements for each financial year of the company.
Second, fulfil the requirements of tax declaration:
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In addition to the requirements of the Companies Ordinance, the Hong Kong Inland Revenue Department will issue a tax return to a limited company every year and require it to be completed and submitted to the Hong Kong Inland Revenue Department together with an audit report signed by a certified public accountant at a specified time.
Therefore, completing the audit report on time can fulfil the requirements and conditions of the Companies Ordinance and the filing of tax returns at the same time.
The applications of Auditing services
In addition to the statutory and tax reporting requirements, the audit report can also be used by companies to:
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Apply for financing/borrowing from the bank
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Apply for funding from the government
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Protect the rights and interests of shareholders
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Equity transfer
Choosing Year End
When should a limited company choose its year end date?
Each limited company is free to choose any time as the company's year end date.
Hong Kong limited companies generally choose March 31 or December 31 each year as their year-end date. In addition, as required by law, the first year end date of a limited company is up to 18 months. Therefore, a limited company must choose a suitable time as the first year end date within 18 months after the establishment of the company.
Does different year-end date affect the deadline for filing tax returns and audit reports?
Generally speaking, except for the first tax return issued by the Hong Kong Inland Revenue Department to a limited company (the submission deadline is within three months of the tax return issuance date), all tax returns should be submitted within one month of the tax return issuance date. However, the Hong Kong Inland Revenue Department provides D and M companies with a batch of applications for deferring the filing of tax returns on the year-end date. The general deadlines for submitting tax returns and audit reports after the extension are as follows:
Documents Required
Year-end date:
Between April 1 and November 30 (Type N)
Between December 1 and December 31 (Category D)
Between January 1 and March 31 (Category M)
General submission deadline
One month after the tax return is issued
August 15
November 15
The documents that companies generally need to provide
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Previous year's audit report
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Audit year's management accounts
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Company's meeting minutes
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Bank statements
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Revenue-generating invoices or contracts
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Cost/expense invoices /Contracts/receipts
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Invoices/contracts/receipts for the purchase or sale of fixed assets
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Bank financing contracts
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Other related information
If you are interested in knowing more information, please contact us through the following methods:
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a. Phone (852) 2326 8300
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