Can Hong Kong companies file tax returns without accounting? Are there any risks?

Hello, I'm glad to answer your question.

According to the laws of Hong Kong, as long as a registered Hong Kong company has normal operations, no matter how much profit it has, whether it has losses or not, as long as there is capital flow, it must be audited.

However, if the company meets the conditions of zero declaration, that is, it has not carried out any business after registration and has no running water, it can directly apply for zero declaration without accounting audit.

The consequences of Hong Kong companies not auditing their accounts are as follows:

1. Severe fines

Will be fined 500,000-300,000 Hong Kong dollars. The amount of fine will increase with the accumulation of overdue time, and the tax bureau estimates that it is three times the tax. Serious cases may even be brought to court to restrict entry and exit.

The bank account has been closed.

If the tax bureau finds that the accounts have not been audited, it will forcibly close the bank account and freeze all the amounts in the account.

The company's reputation is gone.

If you want to cooperate with some enterprises, the normal partners will ask for the audit report of the previous year to see whether the company is operating legally and how strong it is. If it cannot be provided, cooperation may be refused.

4. Other businesses of the company are blocked.

If the company wants to redistribute shares or change directors, it needs to provide an audit report.

Step 5 be blacklisted

Directors and shareholders of the company will be blacklisted by the Hong Kong government, and their personal lives will be greatly troubled.

The above content is an overview of accounting audit, hoping to help you.