Accounting, audit & tax

Hong Kong: audit and profits tax

Hong Kong companies generally file their profits tax return with audited financial statements. The Inland Revenue Department asks for the balance sheet, profit and loss account and auditor's report with the return. The main exception is a dormant company: a private company becomes dormant by delivering a special resolution to the Companies Registry under section 5 of the Companies Ordinance, and a dormant company is exempt from the audit requirement (section 447).

The audit is carried out by a certified public accountant (practising) who is independent of the company. We keep the books, prepare the draft statements and schedules, and deal with the auditor's questions so the audit runs to timetable.

Claims that profits are sourced outside Hong Kong are reviewed by the IRD on the facts. If you plan to make one, tell us early: it needs contracts, invoices and evidence of where the work was done.

UK and Singapore: accounts and audit exemptions

UK private companies file annual accounts with Companies House and a corporation tax return with HMRC. Small companies can be exempt from audit. For financial years starting on or after 6 April 2025, a company generally qualifies if it meets at least two of three conditions: turnover up to £15 million, assets up to £7.5 million, and 50 or fewer employees on average.

Singapore companies file annual returns with ACRA and a corporate income tax return with IRAS. A private company is exempt from audit as a small company if it meets at least two of three criteria for the immediate past two consecutive financial years: total annual revenue of SGD 10 million or less, total assets of SGD 10 million or less, and 50 or fewer employees. A company in a group qualifies only if the group also meets the criteria on a consolidated basis.

We check each year whether your company qualifies, because the answer can change as the business grows.

Offshore companies: records and financial returns

Offshore jurisdictions have moved away from companies that keep no records at all. In the BVI, for example, every company must file an annual financial return with its registered agent within nine months after the end of its financial year. A company that does not file loses its good standing and faces penalties.

Other jurisdictions have their own accounting record and economic substance rules. We tell you what applies to your company and keep the records in a form your registered agent and bank will accept.

• Accounting records kept for the period the law requires
• Annual financial return or summary prepared for the registered agent
• Economic substance notifications where they apply

Why clean books matter beyond compliance

Banks ask for financial statements at account reviews. Payment providers ask for them when you request higher limits. Buyers and investors ask for them in due diligence. Up-to-date books make each of these a quick request rather than a project.

Late filings also cost money: most registries and tax authorities charge penalties that grow with time. A fixed monthly plan spreads the work across the year so year-end does not arrive as a surprise.

What you provide and what we handle

Your part is small but regular. Send bank statements and invoices each month, answer our questions on transactions we cannot identify, and approve the final statements before they are signed.

We do the recording, reconciliations, year-end adjustments, statement drafting, auditor liaison and the tax filing itself. Each deadline sits in your portal calendar, and we remind you well before it so there is time to collect anything missing.

If your company has transactions with you or a related company, such as director loans or shared costs, tell us early. They need clear paperwork, and auditors and tax officers ask about them first.

• You: documents each month, answers to queries, approval of the statements
• We: bookkeeping, reconciliations, statements, audit coordination, tax filing, reminders