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Hong Kong Accounting, Auditing and Taxation

Enjoy accounting and annual auditing services for your Hong Kong limited liability company in the most cost-effective and time-saving way with Hongda.


Accountancy, Auditing and Taxation
in Hong Kong With Hongda

The accounting requirements in Hong Kong can be quite similar to that you may have already been familiar with when doing business overseas, but slight differences still exist. Professional accountants can provide analysis and assistance to improve corporate management level and overall profitability while meeting local government regulations.

In addition to monthly financial recording, annual financial statements need to be audited by a CPA, following the “Hong Kong Accounting Standards and Auditing Standards”, as required by the Companies Ordinance in Hong Kong to verify the financial status of your company.

With strict regulation on taxation, carefully planned tax service is crucial regarding running your company and doing business in Hong Kong.

In conclusion, an integrated solution package covering accounting, auditing and taxation services will greatly benefit your operation in Hong Kong. That’s why Hongda offers Hong Kong company annual package to take care of financial challenges you may face. 



With years of development, HONGDA has built a strong team with professional capabilities within financial field. Continuously absorbing outstanding senior accountants, certified tax accountants (CTAs) and certified public accountants (CPAs).

HONGDA has become your trusted business partner who will work with you as you shape your business by providing tailored solutions to fit your every need.

What Are the Requirements for Accounting, Auditing and Taxation for Hong Kong Companies?

Company Accounting in Hong Kong

There is no compulsory requirement for the frequency of Hong Kong company financial accounting: the financial statements can be published on a quarterly or even annual basis. The frequency of publishing financial history is depended on the actual operation situation and the necessity of issuing timely updated financial statements to reflect business progress.


Taxation in Hong Kong

Hong Kong is considered as one of the most tax-friendly areas globally, and only three types of direct taxes are imposed:

  • Corporate profits tax: limited liability companies can enjoy a preferential rate of 8.25% for the first 2 million HKD of corporate income, followed by a 16.5% corporate profit tax ratio for subsequent assessable incomes. You will only need to report profits tax once annually;

  • Personal salaries tax: charged based on your individual income obtained from employment, offices or duty performing in Hong Kong when your income exceeds the non-chargeable allowance;

  • Property tax: tax obligations of a property owner who derived rental income from letting properties situate in Hong Kong;

If your profits are obtained from business outside Hong Kong, which is also known as specified foreign-sourced income, you can also declare offshore income and enjoy profits tax exemption. For more information about offshore income tax exemption, please read our article: how to declare offshore income tax exemption in Hong Kong.


Annual Auditing in Hong Kong

Based on the regulations of the Companies Ordinance (CO) and Inland Revenue Ordinance of the Hong Kong Company Registry, limited liability companies need to take auditing each year. According to Article 122 of the Companies Ordinance, annual financial statements of all limited liability companies registered in Hong Kong need to be inspected and audited by CPAs. Inland Revenue Ordinance also requires an audited financial report and statement for the annual tax declaration. 

Inland Revenue Department will deliver profit tax returns to all limited liability companies in Hong Kong, and tax declaration forms together with auditing reports issued by a Hong Kong certified practicing accountant (CPA) need to be submitted within a given period. In general cases, a company will receive its first profit tax return 18 months after establishment and needs to submit forms in 3 months. A notice of payment of profits tax from the Inland Revenue Department will be delivered if a profitable situation is presented. 

By performing Hong Kong company auditing, you can also:

  • Support Hong Kong bank account maintenance: as the requirement of anti-money laundering around the globe, it’s becoming more difficult to register and get approval of opening a bank account. As a corporate bank account is a must-have condition for the company to operate, you must demonstrate that you are fully compliant and free of risks by providing auditing reports when applying for a Hong Kong bank account.
  • At the same time, an auditing report from the bank account owner for confirmation is required should the bank expresses any doubt about the account during the annual account examination and maintenance;
  • Present to shareholders meeting: a well-organized auditing report is an evidence of your company’s financial status to be presented to shareholders so that they will form a clear concept of the actual operation condition;
  • Enhance public credibility: passing annual financial auditing is a convincing proof to demonstrate that your company is continuously operating in a legal way and can enhance credibility and reputation to the public and governments, which is crucial for listed companies;
    Benefit your Hong Kong permanent residence application and bank loan taking;


Hongda’s Hong Kong Company Annual
Accounting, Auditing and Taxation Package

From April 1, 2023, the Hong Kong Inland Revenue Department will no longer accept submission of zero-declaration tax returns. Companies without actual operation will still need to provide a no-operation auditing report, issued by a qualified Hong Kong CPA. In other words, auditing reports must be submitted together with profits tax returns in all cases from April 1, 2023, before which a zero profits tax returns declaration was accepted, remarking that the era of zero tax returns was gone.

To provide customized financial solutions to our clients in different stages of development with unique requirements, Hongda now formulates various annual financial services packages, covering professional, accurate and compliant accounting, auditing and taxation services. With Hongda’s assistance, you will not need to worry about your financial and tax compliance anymore.

Which Annual Package Plan Suits You Better?

Hong Kong Company
Annual Package

Perfect for start-up companies with few numbers of transactions.

Auditing + Annual Tax Return + Accounting of entries between 1 to 50.

What are included:

  • Accounting service;

  • Detailed profit statement recording;

  • Bank reconciliation;

  • Auditing report;

  • Submission of profits tax return;

  • Real-time updates and explanation;

Pricing: 5,400 HKD / Year


Hong Kong Company
Annual Package

Perfect for companies starting to expend with limited numbers of transactions.

Auditing + Annual Tax Return + Accounting of entries between 51 to 100.

What are included:

  • Accounting service;

  • Detailed profit statement recording;

  • Bank reconciliation;

  • Auditing report;

  • Submission of profits tax return;

  • Real-time updates and explanation;

Pricing: 6,500 HKD / Year


Hong Kong Company
Annual Package

Perfect for rapid-growing companies with increasing numbers of transactions.

Auditing + Annual Tax Return + Accounting of entries between 101 to 200.

What are included:

  • Accounting service;

  • Detailed profit statement recording;

  • Bank reconciliation;

  • Auditing report;

  • Submission of profits tax return;

  • Real-time updates and explanation;

Pricing: 8,500 HKD / Year


Hong Kong Company
Annual Package

Perfect for large-scale enterprises with a high volume of transactions each year.

Auditing + Annual Tax Return + Accounting of entries between 201 to 300.

What are included:

  • Accounting service;

  • Detailed profit statement recording;

  • Bank reconciliation;

  • Auditing report;

  • Submission of profits tax return;

  • Real-time updates and explanation;

Pricing: 11,000 HKD / Year


What do I need to prepare for Hong Kong company auditing?
  • Original sales / service contracts, labor contracts, renting contracts;
  • Invoices or receipts of purchase and sales;
  • Bank statements ;
  • Copy of special licenses, such as SFA or EAA license if applicable;
  • Copy of Certificate of Incorporation;
  • Copy of recent Business Registration Certificate;
  • Copy of company’s articles of association;


When is the Tax Declaration Deadline?

There will be slight difference for auditing each year. In general cases, Inland Revenue Department will deliver profit tax return to all limited liability companies in Hong Kong on the first working day of April.

When you receive profit tax return, you should complete forms within a month and submit them for tax declaration, together with your audited report. Delayed tax return may result in fines, courts summons and even imprisonment.


Year-End Dates Fall Within Standard Deadline Extended Deadline
April 1 – November 30 (N code) May 2 of next year No extension
December 1 – 31 (D code) August 15 of next year     No extension
January 1 – March 31 (D code) November 15 of the same year     January 13 of next year for companies suffering statutory loss *Application must be lodged on or before 31 October


Hong Kong Offshore Tax Exemption: Are You Qualified to Enjoy?

What Is Offshore Tax Exemption in Hong Kong?

If your Hong Kong company’s operation activities take place entirely outside of Hong Kong and resulted in foreign-sourced profits, it will be qualified to enjoy tax-free offshore profits tax granted by the Hong Kong tax authority. Hong Kong adopts a territorial source principle of tax, which means that only profits sourced in Hong Kong are taxable. This also means that even if your limited liability company is registered in Hong Kong, you can still declare offshore income and enjoy tax exemption as long as the operation profits are not sourced in Hong Kong.


Qualifications To Apply for Offshore Tax Exemption

So far there is no official definition of the term “offshore profits” released by the Inland Revenue Department of Hong Kong, leading to a lack of generally accepted principal in practices. Elaboration is necessary is needed to determine whether the company profits arise in or are derived from Hong Kong depending on the actual situation of each case. A general case that a company registered in Hong Kong with headquarter in the Chinese mainland applying for offshore tax exemption is that:

A company in the Chinese mainland is seeking to develop its international business. Attracted by the outstanding business environment in Hong Kong, it is planning to register a trading company in Hong Kong. The trading company does not have clients and suppliers in Hong Kong and will not sign any contracts in Hong Kong, receive & deliver any goods, apply for customs declaration & clearance, and is not planning to hire any employees due to a lack of physical office in Hong Kong. In this case, the company will be able to try for a tax exemption application.


For more information about offshore income tax exemption, please read our article: how to declare offshore income tax exemption in Hong Kong.


Keeping compliant accounts in Hong Kong is crucial to the future success of your company, as any doubts may affect your reputation with the government and banks. Hongda's expert accountants won't let that happen.

Nowadays, Hongda has served over 5000 clients since our foundation in 2007, more than a half of which has been using Hongda’s financial services for more than a decade. 




Material Preparation

Material preparation of company financial statements and proof documents.


Making Reports Proposal

Making reports proposal based on company’s financial status by CPAs.


Director’s Checking

Director’s checking & issuing of confirmed auditing reports and financial proof.


Submission To Tax Bureau

Submission to tax bureau of auditing report and incomes tax table.


Is your Hong Kong company preparing for its annual audit, but not sure what to do? No problem, click the button below to request a FREE no-strings-attached 20 minute consultation by phone or in person to discuss your company's situation:

Annual Hong Kong Company Accounts Auditing Service


Our Experts

Angel Ho (Chief consultant, founder of Hongda)

  • Qualification certificate of tax advisor
  • Certified public account (CPA) certification by ACCA
Angel CPA certificate-1

Our Honor

Qualification for Bookkeeping agency

In 2021, Hongda was selected as the vice president unit of Shenzhen Agency Bookkeeping Association.


Our Honor

Qualification for Bookkeeping agency

In 2018, Hongda was awarded the Most Innovative Services Prize by Shenzhen Agency Bookkeeping Association.


Business Service Guidance

Hongda Business Services helps foreign businesses looking to establish in the PRD (Pearl River Delta, Guangdong), Shanghai and Hong Kong take advantage of everything that China has to offer. 


How do I set up a company in Shenzhen or the PRD?

Prepare the shareholder certificate, letter of good standing from the bank. Find an office in China. Make the application (of course better find a professional agent in China to help you).

Do I need to have a foreign company to start a company in China?

No, you could also use your personal name to start the company in China.

What are the drawbacks of a WFOE / rep office / JV?

Rep.Office:High tax, could not hire Chinese employees directly.

WFOE/JV: Slow registration time.

The benefit of all is that if you aim to run a business in China, any will allow you to do so. 

Do I need to personally go to China to set up the company?

No, you dont. Hongda Business Services
can help you to do this while you are abroad.

Do I need an actual office space to register a WFOE / rep office / JV?

Luckily now, you dont. Hongda Business Services can provide the office address for registration. 

Which documentation do I need for a WFOE / Rep Office / JV?

Oversea investor's certificate, bank reference letter and office in China are the key documents for each company type. 


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