Accounting & Auditing Services for Businesses in Hong Kong
Digital Accounting Services: Online accounting services, automatic bookkeeping, and proactive tax support ready to use for busy entrepreneurs all in one platform.
Preparing your own financial records is often a headache
Filling out reports is not easy and truly time-consuming
Filing deadlines is oftenly stressful
It is challenging to guarantee the accuracy of all data
Your time is money, don't waste it
Fastest online accounting for busy entrepreneurs.
One Accounting Only
We allocate a qualified accountanting expert to help you review your company's financial records, complete accounting reports, provide tax relief information, and submit everything on time.
Streamline Process
Everything you do manually, like uploading bank statements, invoices, bills, and costs, is now done automatically! We handle them in few minutes and send back reports with tax filings.
Transparency Fee
For bookkeeping, financial statements, or tax filing, we only charge a flat fee. No additional fees!
Essential information about accounting in Hong Kong.
Create unaudited financial statements.
These consist of income statements, balance sheets, and cash flow statements.
Conduct an annual audit of these accounts.
It is mandatory for all businesses in Hong Kong to undergo an audit conducted by a certified third-party auditor, who is responsible for submitting the audit results to the Inland Revenue Department.
Submit a Profits Tax Return on a yearly basis.
During the assessment year, corporations must declare their Assessable Profits (or Adjusted Loss) that were incurred during the basis period.
Accouting & Auditing Program Fees
In order to ensure that you meet all of reporting obligations, our accounting and auditing service will cover the following areas:
Preparing annual statutory accounts (i.e Profit & Loss account, Balance Sheet, Trial Balance)
Audited financial statements
We assess service fees based on the volume and complexity of your transactions.
| Amount(Transactions) | Fee |
|---|---|
| Below 30 | US$ 481 |
| 30 to 59 | US$ 546 |
| 60 to 99 | US$ 624 |
| 100 to 119 | US$ 663 |
| 120 to 199 | US$ 819 |
| 200 to 249 | US$ 1,079 |
| 250 to 349 | US$ 1,456 |
| 350 to 449 | US$ 1,963 |
| 450 and Above | To be confirmed |
| Turnover (Million HKD) | US$ Estimated Equivalent (*) | Fee |
|---|---|---|
| Below 0.5 M | Below 64,500 | US$ 1,221 |
| 0.5 M to 0.74 M | 64,500 to 95,999 | US$ 1,391 |
| 0.75 M to 0.99 M | 96,000 to 127,999 | US$ 1,664 |
| 1 M to 1.49 M | 128,000 to 191,999 | US$ 2,145 |
| 1.5 M to 1.99 M | 192,000 to 255,999 | US$ 2,353 |
| 2 M to 2.99 M | 256,000 to 383,999 | US$ 2,666 |
| 3 M to 3.99 M | 384,000 to 511,999 | US$ 3,146 |
| 4 M to 4.99 M | 512,000 to 640,999 | US$ 4,485 |
| 5M and above | 641,000 and above | To be confirmed |
Hong Kong Tax Filing
Profits Tax Return
Submit the first Profits Tax Return 18 months after incorporation, along with audited accounts to determine tax owed. Year one accounting and auditing takes longer. All HK Limited Companies' financial statements must be audited by a CPA. Arrange an accountant soon, as it's hard to change the tax return once submitted.
Employer's Return
In April's first week, the IRD issues Employer's Return (IR56A&B). Employer is required to submit within a month, regardless of recruiting status. Delay costs a fine.
Profits Tax Return
US$ 390
Employer's Return
US$ 260
Required Documents
- All invoices issued during the reporting period.
- Bank statements of the company.
- Documents related to the incorporation of the company.
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Hong Kong
Accounting & Auditing - Download Detail Forms
| Description | QR Code | Download |
|---|---|---|
| Form & Download | ||
| Profit Tax Return – BIR51 – Sample PDF | 510.11 kB | Updated time: 24 Dec, 2018, 15:48 (UTC+08:00) HK profit tax return of an corporation company sample – Form BIR51 |  |  |
| ECI form for company YA2019 PDF | 157.55 kB | Updated time: 24 Dec, 2018, 15:55 (UTC+08:00) Estimate of the company’s taxable income for a Year of Assessment – form ECI |  | |
| Corporation Tax Return PDF | 471.89 kB | Updated time: 24 Dec, 2018, 15:57 (UTC+08:00) Company tax return form- CT600 |  | |
| US Corporate Tax Return _ Form 1120 PDF | 289.56 kB | Updated time: 24 Dec, 2018, 15:59 (UTC+08:00) Report Corporate Income Tax to IRS _ Form 1120 |  | |
| Salary Tax Return – BIR56A – Sample PDF | 1.40 MB | Updated time: 24 Dec, 2018, 15:48 (UTC+08:00) Employer’s return remuneration and pensions to IRD |  | |
| Form C YA2018 PDF | 895.16 kB | Updated time: 24 Dec, 2018, 15:55 (UTC+08:00) Income Tax Return for a Year of Assessment (YA2018)- Form C |  | |
| Partnership Tax Return PDF | 287.44 kB | Updated time: 24 Dec, 2018, 15:57 (UTC+08:00) Partnership Tax Return form -SA800 |  | |
| US Delaware Corporate Income Tax Form _ Form 1100X PDF | 211.47 kB | Updated time: 31 Oct, 2020, 12:39 (UTC+08:00) Report corporate income tax return under Section 1902(b), Title 30, Delaware Code |  | |
| A guide to keeping business record PDF | 117.70 kB | Updated time: 24 Dec, 2018, 15:55 (UTC+08:00) A guide to keeping the business record for a Hong Kong company |  | |
| Form C-S YA2018 PDF | 306.38 kB | Updated time: 24 Dec, 2018, 15:55 (UTC+08:00) Income Tax Return for a Year of Assessment (YA2018)- Form C-S |  | |
| Trust & Estate Tax Return PDF | 261.66 kB | Updated time: 24 Dec, 2018, 15:58 (UTC+08:00) Trust & Estate Tax Return form -SA900 |  | |
| Format of Tax Computation for a dormant company PDF | 35.34 kB | Updated time: 24 Dec, 2018, 15:55 (UTC+08:00) Tax Computation for a dormant company |  | |
| Registering a partner for Self Assessment & Class 2 NICs PDF | 142.70 kB | Updated time: 24 Dec, 2018, 15:58 (UTC+08:00) Use this form to register partners in a partnership – SA401 |  | |
| GIRO application PDF | 3.99 MB | Updated time: 18 Jul, 2019, 12:54 (UTC+08:00) GIRO application form for Corporation Tax |  | |
| Registering a partner for Self Assessment if they are not an individual PDF | 95.42 kB | Updated time: 24 Dec, 2018, 15:58 (UTC+08:00) Use this form to register partners who are not individuals – SA402 |  | |
| Notice to delivery a Company Tax Return – Sample PDF | 5.20 MB | Updated time: 24 Dec, 2018, 15:59 (UTC+08:00) Receive this form from HM Revenue and Customs (HMRC) for filling a Company Tax Return |  | |
| Filing Notice of Objection PDF | 785.37 kB | Updated time: 24 Dec, 2018, 15:56 (UTC+08:00) Form Filing Notice of Objection Corporation Tax |  | |
| COR form for Partnership DOC | 46.00 kB | Updated time: 24 Dec, 2018, 16:00 (UTC+08:00) Certificate of Residence for Only Partnership |  | |
HONG KONG COMPANY FORMATION
DETAIL COST PLANNING
Enter your email address to receive the cost breakdown of establishing a business in Hong Kong.
Disclaimer
The information from mail is only meant to be used for general information. You shouldn’t use the information from the mail as a replacement for competent legal advice. Please seek our professional advice if you would like to learn more about how cost planning would work for your Hong Kong corporate.
Frequently Asked Questions
Correct accounting methods are crucial for businesses to accurately report revenue and expenses. Generally, there are two main accounting methods: cash and accrual accounting. The appropriate accounting method depends on your business’s size and legal structure.
Small businesses typically use the cash method since it is simpler and doesn’t require tracking accounts receivable or payable. The accrual method is more appropriate for businesses that need an accurate balance sheet, want to track retained earnings, or better manage expenses.
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If so, here are several remarkable advantages to keep in mind:
- experienced and helpful professional bookkeepers can provide clarity on your financial status
- aid in the preparation of accounting and financial statements.
- they allow you to focus on your business strategy and plan for the future, ultimately freeing up more time for revenue-generating activities.
- they can assist you in maximizing your tax deductions, further optimizing your financial resources.
In the United States, the most valuable bookkeeping certifications are CPB and CB.
- The National Association of Certified Public Bookkeepers (NACPB) provides CPB certification for certified bookkeeping professionals
- the American Institute of Professional Bookkeepers (AIPB) offers CB certification for certified bookkeepers
To qualify for CPB certification, candidates must possess a minimum of 2,000 hours of work experience, while CB certification requires candidates to have a minimum of 3,000 hours of work experience.
Bookkeeping involves the daily recording of a company’s financial transactions into organized accounts, utilizing accounting principles and supporting documentation. It is a crucial aspect of accounting for several reasons.
Effective bookkeeping enables businesses to stay current with their financial transactions and generate accurate financial reports, which aid in measuring business performance. Well-managed bookkeeping allows for close monitoring of a company’s financial capabilities and is also beneficial for tax purposes.
There are two distinct types of bookkeeping: single-entry and double-entry bookkeeping. Additionally, two bookkeeping methods exist: cash accounting and accrual accounting.
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The IRD requires three main types of tax returns to be filed: the Employer’s Return, Profit Tax Return, and Individual Tax Return. Entrepreneurs are required to file all three tax returns annually, starting from the first received return.
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Upon forming a Hong Kong company, the initial Profit Tax Return (PTR) is issued 18 months after the incorporation date. It is important to adequately prepare accounting records and submit the first audit report along with the completed tax return to the IRD.
In general, any expenses and outgoings that have been incurred by the taxpayer in generating chargeable profits are permitted as deductions.
Even if a company is registered in a foreign jurisdiction but generates profits in Hong Kong, it is still subject to Hong Kong Profit Tax. Therefore, these businesses are required to file the Profit Tax Return with the IRD.
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What tax exemptions do foreign companies enjoy in Hong Kong?
In Hong Kong, the requirement for an audit depends on your company’s status and turnover. Even if your company is inactive or has a small turnover, an audit might still be necessary.
1. Inactive Company
If your company is inactive (i.e., it has not conducted any business activities during the financial year), you may still need to submit audited financial statements to the Inland Revenue Department (IRD) if the company is registered. However, you might be able to file a "no business" declaration, in which case an audit may not be required.2. Small Turnover
For companies with a small turnover, Hong Kong law still requires annual audits by a certified public accountant (CPA) to ensure compliance. This applies regardless of turnover size. The Hong Kong Companies Ordinance mandates that all companies, unless exempted, must file audited financial statements.3. Exemption from Audit
In some rare cases, private companies with very small turnover (less than HK$2 million) and meet other criteria might qualify for audit exemptions, but they must apply for this exemption and meet specific conditions. For example, your company must not be a subsidiary of another company, and shareholders must agree to waive the audit requirement. Even if your company is inactive or has minimal turnover, it’s recommended to consult a local accountant or auditor to clarify your obligations based on your specific situation and ensure compliance with Hong Kong’s legal requirements.From 2018/19 onwards, the tax rate for Profit Tax is 8.25% on assessable profits up to $2,000,000, and 16.5% on any assessable profits exceeding $2,000,000.