Accounting and Taxation Arrangement

An audit is a must in Hong Kong?

The Company Ordinance requires to do an audit every year of the company that is incorporated in Hong Kong. The Inland Revenue Ordinance (IRO) requires to keep sufficient records (in English or Chinese) and the records must be retained for at least seven years.

Therefore, the Hong Kong company should prepare the accounts and audit every year. To prepare the accounting, you can just prepare the below list of documents, our professional accountant will help to prepare the account reports for the tax reporting.

1. Bank statements

All the statements must be kept from the bank opening until the year-end date

2. Income and cost invoices

You have to keep all the invoices of sales and cost. In addition, preparing a record with invoices number, name of customer/vendor and the number of invoices can help to reduce the fee of accounting.

3. Expenses (related to business)

There is no restriction to claim the expenditure as company expenses.

For example, entertainment, traveling, accommodation, can be recorded as an expense to reduce the company profit.

In addition, same as point 2, you are required to keep the expense receipt over 7 years. if you had prepared a record for the expenses type and amount which can reduce the accounting fee.