Running a limited company in Hong Kong involves strict adherence to the framework outlined in the Companies Ordinance. One of the essential obligations is submitting an audit report performed by a Certified Public Accountant (CPA) alongside your tax return filings.

Running a limited company in Hong Kong involves strict adherence to the framework outlined in the Companies Ordinance. One of the essential obligations is submitting an audit report performed by a Certified Public Accountant (CPA) alongside your tax return filings.

The audit provides evidence that all financial information and documentation is in good order. If your business is due for an audit, this article will explain everything you need to know about audits in Hong Kong.

Hong Kong aims to simplify the Financial Reporting Standards (FRS) by offering a “reporting exemption” for small-to-medium-sized enterprises (SMEs) that meet specific criteria. This can speed up the reporting process and reduce the administrative burden on smaller companies.

The financial year is a 12-month period used to prepare company financial statements, among other accounting purposes. In Hong Kong, the end of this period is known as the Financial Year End, or FY end. You might also see this term referred to in Hong Kong asthe ‘Fiscal Year’ or ‘FYE’, while in other countries you might speak about the ‘Accounting Year’.