HK Company Audit

In the context of deepening globalization, more and more companies choose to register companies in Hong Kong to expand their international business. Hong Kong has attracted the attention of many investors with its low tax rate, no foreign exchange control and sound legal system. However, for many newly established or considering setting up a company in Hong Kong, understanding when to conduct an audit and the cost of an audit is a key issue. This article will explore these issues in detail and introduce how NEO can provide you with professional and efficient audit services.

Basic requirements for Hong Kong company audits

According to the Hong Kong Companies Ordinance and the Inland Revenue Ordinance, all companies registered in Hong Kong must be audited once a year and submit an audit report to the Inland Revenue Department. This process usually involves hiring a licensed accountant to review the company's financial statements to ensure that they truly and accurately reflect the company's financial situation. Audits not only help comply with laws and regulations, but are also an important means to enhance the company's transparency and reputation.

When is an audit required?

1. First audit time: A newly established Hong Kong company will receive the first tax return issued by the Inland Revenue Department within 18 months from the date of establishment. The company must complete the tax return within three months after receiving the tax return. If the company chooses to apply for an extension, the specific extension date will be determined based on the selected year-end date (such as March 31 or December 31).

2. Subsequent annual audits: Except for the first year, every company needs to be audited at the end of each financial year and complete the declaration within one month of receiving the tax return. If the company chooses a specific year-end date, it can apply for an extension to file taxes so that there is enough time to prepare financial statements and audit reports.

3. Audit needs in special circumstances: Even if the company has no operating activities or no income in a certain year, it is still required to conduct an audit and submit a "zero declaration" to the tax department. In addition, financial institutions such as banks sometimes require the latest audit report as part of account management.

Overview of audit fees

The cost of auditing a Hong Kong company varies depending on a variety of factors, mainly including:

Turnover/total receipts: Generally speaking, the larger the company's turnover, the more complex and time-consuming the audit work is, and therefore the higher the fee. For example, a small business with a turnover of less than HK$1 million may only need to pay a few thousand Hong Kong dollars in audit fees, while for large companies with a turnover of more than tens of millions or even hundreds of millions of Hong Kong dollars, the audit fees may reach tens of thousands of yuan or even higher.

Number of transactions: If a company has more bank statements, it means that the auditor needs to process more transaction records, which will also affect the final audit cost.

Difficulty of accounting: The more complex the company's organizational structure and the more affiliated companies involved, the more difficult the audit work will be, and the corresponding fees will also increase.

Specifically, according to the general situation in the market, the audit fees for small and medium-sized companies are roughly between HK$3,000 and HK$20,000, but this is only an approximate range, and the actual fees need to be evaluated based on the specific situation.

Why choose NEO?

NEO has rich industry experience and a professional team, and can provide customers with a full range of audit services:

Personalized solutions: We provide customized audit solutions for companies of different sizes and industries to ensure that the unique needs of customers are met.

Efficient execution: With deep industry background and expertise, our team is able to quickly complete audit tasks while ensuring quality, helping clients avoid overdue fines.

Comprehensive support: From initial consultation to final report submission, NEO provides clients with full guidance and support to ensure that every step goes smoothly.

Transparent pricing: We promise an open and transparent pricing strategy, eliminating any hidden fees, so that clients have a clear understanding of every expenditure.

In short, by working with NEO, you can get professional and reliable audit services to ensure that your company develops steadily on the basis of legality and compliance. If you have any questions about Hong Kong company audits or need further help, please feel free to contact NEO's professional consultant team.