Questions clients ask
Short answers to the questions that come up most. If yours is not here, ask me.
Do I need an audit if the company made no money?
Yes. Every Hong Kong company has its financial statements audited each year, whether it made a profit, a loss or nothing at all. The exception is a company that is genuinely dormant — no accounting transactions at all — which can pass a resolution to be exempt from the audit while it stays that way.
What happens if I miss a filing deadline?
It depends on the filing. A late tax return can lead to an estimated assessment and a penalty; a late annual return costs a higher registration fee, rising the longer it waits, and can lead to prosecution. In every case, filing as soon as possible limits the damage. See the filing calendar.
My company is not trading. What should I do?
If it has stopped for good, it may be simplest to deregister it. If you want to keep it for later, it can be made dormant, which removes the audit while it stays inactive. It still files its annual return every year. Which is better depends on your plans — we can go through them.
Can I be both director and company secretary?
Not if you are the only director. A private company's sole director cannot also be its company secretary. With two or more directors, one of them can act as secretary, provided the secretary meets the Hong Kong residence requirement.
What do you need from me at the year end?
Bank statements for the whole year, sales invoices, purchase receipts, payroll details if you employ anyone, and a word about anything unusual. The full list is on the accounting page.
How long must I keep receipts?
At least seven years. Scans are fine if they are complete and easy to find. More in the note Seven years.
Can you deal with the Inland Revenue Department for me?
Yes. As your tax representative we file the returns, receive the correspondence, answer enquiries and deal with the assessor on your behalf. You still sign the return and remain responsible for it, but you do not have to handle the letters yourself.
Do you work in Chinese and English?
Yes, both. Write in whichever you prefer.
How are fees worked out?
Each job is quoted after we have seen the books and know what the work involves — the volume of transactions, the state of the records and the deadlines. You know the fee before the work starts.
How do I start?
Write to me or call with a line about your company and what you need. If you are setting up a new company, start here.
If you have a question about a filing, a deadline or a company, write to me. I answer my own email.