Companies formed in Hong Kong are obliged to comply with:

 

a)      Companies Ordinance (hereinafter “CO”) (Chapter 622)

b)      Inland Revenue Ordinance (hereinafter “IRO”) (Chapter 112)

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AND they are also  required to comply with other Ordinances related to specific business like food and beverage, financial or insurance service etc.

 

All companies incorporated in Hong Kong should comply with the CO section 367, the first company financial audit report should comply with CO, section 369 (6) “A date specified for the purposes …. Must fall within 18 months after the date of the company’s incorporation…” which means the first annual company financial audit report must be completed within 18 months from the incorporation date.

 

On the other hand, companies which are approved to be dormant by the Companies Registry will be eligible to waive the preparation of the annual audit financial statement.

 

Every subsequent accounting reference period of a company is the period of 12 months beginning immediately after the end of the previous accounting reference period. (CO, section 368 (3)).

 

ONLY the Certified Public Accountants (CPA) who have registered under Hong Kong Institute of Certified Public Accountants are eligible to sign the audit reports for Submissions of Profit Tax Return to Inland Revenue Department.