Accounting and auditing Hong Kong Limited Company

Accounting and auditing

According to the statutory requirement under the Hong Kong law, the first set of financial statements should be prepared for period covering not more than 18 months from the date of incorporation. Hence, may I suggest you choose (say 31st December or 31st March) to be your financial year end date. The first audit will then cover a period from the date of incorporation to 31st December / 31st March.

 

If your company will be commenced business, you need to prepare and provide the following documents (up to 31 December / 31st March ):

 

          All sales invoices/ consulting service invoices;

          All purchases invoice/ subcontractor’s invoices;

          All expense receipts;

          All bank statements;

          General ledger and management account (i.e. Trial Balance, Balance Sheet and Income Statement). If this one you cannot provided, we can provide bookkeeping service to handle it.

 

Taxation

Normally, Inland Revenue Department (IRD), the Hong Kong Tax Authority, will issue Profits Tax Return to the company which incorporated over 18 months.  The first Profits Tax Return should be submitted within THREE months from the date of issuance.  Once reporting the financial year end date to IRD, the submission deadline of the Profits Tax Return together with the audited financial statements (e.g. for 2013) are as follows:

 

Financial year end as at Tax filing date Documents ready for audit
1) 1st January to 31st March 2013 15th Nov 2013 Not later than 1st Sept 2013
2) 1st to 31st December 2012 15th August 2013 Not later than 1st June 2013
3) Other dates than (1) or (2) e.g. 30th June 2013 30th April 2014 Not later than mid of Feb 2014