Do Hong Kong companies have to be audited?

Hello, the Company Law of Hong Kong and the tax regulations stipulate that Hong Kong Limited Company must audit its accounts (also called auditor's report) every year, regardless of whether it is profitable or not, and report the company's financial status to shareholders, directors and the tax bureau.

If there is false information in the audit report, the tax bureau may suspect that the enterprise is doing illegal acts, which will inevitably have a negative impact on the normal operation of the enterprise. Accounting audit is the basis of standardizing the company's finance and winning a good reputation, and plays a decisive role in the company's development. Therefore, we can't ignore the accounting, auditing and tax returns of Hong Kong companies.

The Importance of Corporate Audit in Hong Kong;

Hong Kong Companies Ordinance requires auditing. Every Hong Kong company must issue an audit report as required. The audit report is issued by an internationally recognized certified public accountant, and the government will inspect the company according to the report during the annual review and when the company is declared closed. In addition, the annual audit report can also enhance the credibility of Hong Kong companies in the government.

Article 58 of the Basic Law of the Hong Kong Special Administrative Region stipulates that the Hong Kong Special Administrative Region shall establish an Audit Office, which shall work independently and be accountable to the Chief Executive. Its mission is to provide independent, professional and high-quality audit services for the Legislative Council and public institutions, to ensure the effective use of public resources and to enhance the accountability of the public sector in Hong Kong.

2. Asset trust. Make a credit report on assets and operations to the society and specific departments (such as banks) to explain the company's operations; The audit report issued can be submitted to the shareholders of the company to let them know about the company's operation. The basic requirement of banks in Hong Kong for corporate loans is at least three years of operation and tax declaration ("zero declaration" and "collection and payment on behalf of" cannot apply for loans). If the company pays taxes according to "actual operation", it will be of great help to borrow money from banks in Hong Kong in the future.

3. Investment base. It is the foundation of enterprise financing, fund-raising and listing, and also a solid foundation for domestic investment.

4. The cancellation of the company requires an audit report. All Hong Kong companies that have been operating for 1 year and are profitable are required to provide an accountant's audit report when canceling. A good tax plan will enable customers to effectively reduce tax expenditure and increase cash flow and application. Every Hong Kong company needs to audit its accounts, whether it is a big company, a small company or a shell company. Although the audit report is not always useful, it plays a decisive role in the development of the company at a critical time. Therefore, it is very important to do a good job in accounting audit of Hong Kong companies.

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