Under what circumstances should Hong Kong companies be audited?

Hong Kong Limited, no matter where you do business in the world, no matter whether you are profitable or not, you need to make an audit report to the Inland Revenue Department every year. After explanation, if your profits are really earned from overseas, the Hong Kong Inland Revenue Department has no right to levy profits tax on you, no matter what your profits are.

On the contrary, if you don't explain it to the tax bureau, it is an act of tax evasion and a criminal offence. In fact, the auditor's audit report is not only used to declare to the tax bureau. If you want to raise money or borrow money in the future, it is also the most important evidence to explain your company's financial situation and profitability to your financing target.

Extended data:

The function of audit report

1, payable for inspection, increase goodwill. Hong Kong government departments require each company to issue an audit report. The government will use this report for inspection during the annual review and when the company announces the termination of operation. At the same time, it is also good to prepare audit reports according to government regulations every year, which will promote the company's future dealings with government departments. Audit reports are issued by internationally recognized certified public accountants, and are most commonly handed over to the tax bureau as basic documents to let the tax bureau know whether the company's operation is profitable.

2. Prove financial resources and reflect value. Audit reports made by certified public accountants in Hong Kong are recognized in Hong Kong and even internationally. This recognition includes the recognition and display of the company's operation and finance. Good reporting will enhance the company's image in front of the public and partners.

3. Listing certificate and financing basis. Maybe you don't have a great goal for the development of the company, but as a proof after the operation of the company, whether it is financing or listing, it is the only internationally recognized audit report, which is also an important basis for you to gain the trust of your investment partners. The auditor's report can also be used as the basic document submitted to the government by investors when investing.

4. Transfer relevant delisting certificates. If you want to transfer equity, the mainland government also requires you to provide an audit report.

For example, now you have a Hong Kong company, which is a joint venture with a mainland company, and now you want to transfer the equity to another overseas company, then your Hong Kong company must provide an audit report reflecting the past operating conditions of your company when transferring the equity. This report was also issued by an internationally recognized certified public accountant before the government approved it, and your equity transfer can be completed.

To sum up, a good audit report plays a very important role, and sometimes plays a vital role in the development of the company. It is very necessary to carefully invite professional Hong Kong certified public accountants to make audit reports (also called audit reports).

References:

Baidu encyclopedia-audit