FAQs of Annual audits for Hong Kong companie

FAQs of Annual Audits for Hong Kong Companies

1. What are annual audits for Hong Kong Companies?

   The specific work of an annual audit for a Hong Kong company includes renewal of the business registration certificate and the delivery of an annual return. In Hong Kong, The business registration certificate is only valid for one year and has to be renewed regularly after the anniversary date of incorporation of the company. In addition, the Registrar of Companies requires a company to deliver an annual return after the anniversary date of incorporation of such company, giving an update on the state of affairs of the company during last year, including such information as the number of shareholders of the company, the names of the shareholders and their shareholdings and its operating.

2. How would a Hong Kong company conduct the annual audit?

   Hong Kong Conpak CPA provides annual audit services for Hong Kong and offshore companies. Our existing clients are only required to sign on the acknowledgement and the annual return file while a new client has to provide us with the copies of certificate of incorporation, business registration certificate and NCI. For detailed information, please contact our business consultants at 0755-8882 0088 and 021-64481122.

3. When would a Hong Kong company conduct its annual audit?

   Hong Kong Government requires a Hong Kong company to renew its business registration certificate and deliver an annual return on the anniversary date of the incorporation of the company. The company may incur avoidable fines and credit risk caused from any late delivery.

4. What if a company fails to conduct an annual audit?

   • Penalty. For late renewal of the business registration certificate, the company is subject to an additional fine of HK$300 every year in additional to the payment of all outstanding Government fees. For late filing of an annual return, the amount of the fine increases as shown below.

     Delivery Date	HK$
     Within 42 days after the anniversary of incorporation	HK＄105
     More than 42 days after but within 3 months after the anniversary of incorporation	HK＄870
     More than 3 months after but within 6 months after the anniversary of incorporation	HK＄1740
     More than 6 months after but within 9 months after the anniversary of incorporation	HK＄2610
     More than 9 months after the anniversary of incorporation	HK＄3480

   • The shareholders and directors of the company are liable to prosecution and, if convicted, pay the default fines. For each default, the maximum amount of the fine is HK$50,000.

5. What fees would a company have to pay to the Hong Kong Government for an annual audit?

   For an annual audit, a company is subject to a business registration certificate fee of HK$2450 (HK$450 within the waiver period) and an annual return fee of HK$105.

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