What are the consequences of a Hong Kong company not keeping accounts and filing tax returns?

It is very important for Hong Kong companies to do accounting and auditing. It is illegal if they do not do accounting and auditing.

In the past, the Hong Kong Taxation Bureau would randomly inspect some companies, but on July 1, 2017, after the "CRS Global Tax Information Automatic Exchange" was officially launched in China, the Hong Kong Taxation Bureau will now conduct comprehensive inspections. Checked out. If it is found out that there is no accounting audit, it is likely to be related (for example, properties related to the company will also be found out, and the directors will be prohibited from leaving the country, and in serious cases, they may be detained).

If there are no company financial statements, it will be regarded as "black money" with no source of income.

If the profits are not reflected in the audit report, it will be useless for future financing loans.

It is still necessary for a company to do accounting and auditing. The company's accounting and auditing will also reflect the legitimacy of a company, and there is no need to worry about the relevant departments coming to do random inspections.

1. It is helpful to reflect the company’s strength. The company's accounting and auditing will also show that it has relatively strong financial strength and strength, and will also give customers a sense of reliability.

2. If the company applies for a financing loan in the future, it is a necessary document. If the company wants to apply for a financing loan in the future, accounting and auditing are necessary documents. It will also play a very effective role in handling financing loans in the future.

3. If you are applying for immigration, the audit report must be a favorable income certificate.

4. The company’s accounting audit is also conducive to the company’s effective management of its accounts.

Usually accounting is done about 12 months after the company is established, that is, the first accounting process is conducted at the same time as the annual review. It is generally recommended that the first accounting period be within 18 months (including 18 months). It usually takes 1 to 1 and a half months to complete the accounting audit.

Accounting and auditing are relatively complicated and require attention to many small details. If you accidentally pay attention to the details, you will make mistakes. Information required for accounting and auditing:

1. Bank monthly statements and corresponding bank receipt and payment notices;

2. All expenditure receipts (including receipts issued by our company and those issued by the other party);

3. , all invoices (including purchase and sales invoices, expense invoices related to company operations);

4. All agreements and contracts, such as:

1. Purchase and sales Goods contract;

2. Collection and payment agreement and proof of identity information of relevant persons;

3. Commission agreement and proof of identity information of relevant persons;

4. Lease contract and proof of identity information of relevant persons;

5. Loan contract;

6. Investment contract;

7. Building and land sales Contract;

8. Other related contracts.

The above contracts only need to be provided if they happen.

5. If there is a salary, you also need to provide information, such as:

1. Employment contract/letter of appointment;

2. A salary schedule , it is necessary to list the amount and date of each salary payment;

3. If the salary is paid through a bank, state the bank account information where the salary is deposited; if the payment is by check, list the check number and check date , The name of the bank for check payment;

4. Signed receipt or other supporting documents to prove that the employee has received salary;

5. Proof of personal identity information, such as ID card, passport Waiting for copies.

6. A complete set of documents for the establishment of the company (annual return form, business registration certificate, etc.);

7. Minutes of the company’s board of directors meetings;

8. The company A brief description of the business;

9. List of fixed assets and original vouchers;

10. Previous accounts and audit reports and calculation sheets (suitable for companies that are not doing accounting audits for the first time) ;

11. If the audit is conducted separately, all completed accounts of the company (including balance sheet, profit and loss statement, trial balance sheet, detailed accounts, etc.) must also be provided;

< p>12. There are other related bills.

The accounting and auditing of Hong Kong companies must be done very carefully, because the information to be provided will be relatively large and detailed. It is recommended to find a professional organization to review your information and perform accounting and auditing, so that you can feel at ease. do business.