Accounting Requirements in Hong Kong
In Hong Kong, companies must adhere to several accounting requirements to ensure compliance with local regulations and maintain transparency. This article outlines the key requirements and how The Boom HK can assist you in navigating them.
1. Accounting Standards
Hong Kong Financial Reporting Standards (HKFRS):
- Companies must prepare their financial statements in accordance with HKFRS, which are closely aligned with International Financial Reporting Standards (IFRS).
2. Accounting Records
Record Keeping:
- Companies must maintain proper accounting records that accurately reflect their transactions and financial position. These records should be kept for at least seven years
3. Financial Statements
Annual Financial Statements:
- Companies are required to prepare annual financial statements, including a balance sheet, income statement, and cash flow statement.
4. Audits
Mandatory Audits:
- All companies must have their financial statements audited annually by a certified public accountant (CPA) in Hong Kong
5. Compliance with Companies Ordinance
Annual Return:
- Companies must file an annual return with the Companies Registry, providing updated information about the company’s structure and management.
Business Registration Certificate:
- Renew the Business Registration Certificate annually or every three years, depending on the chosen option.
6. Taxation
Profits Tax Return:
- File an annual Profits Tax Return with the Inland Revenue Department (IRD).
Employer’s Return:
- Submit an Employer’s Return annually if you have employees.
7. Significant Controllers Register (SCR)
Profits Tax Return:
- File an annual Profits Tax Return with the Inland Revenue Department (IRD).
Employer’s Return:
- Submit an Employer’s Return annually if you have employees
How The Boom HK Can Help
Navigating the accounting requirements in Hong Kong can be complex. The Boom HK offers comprehensive support to help you establish and manage your business efficiently. Their expert team can assist with everything from maintaining proper accounting records to ensuring compliance with local regulations.