Our Services - Preparing Company Accounts


Hong Kong Limited companies
The information below is a summary of what we are normally asked:

• A HK limited company can choose any date as its financial period end however the first financial period end must be within 18 months of incorporation and subsequent period ends can not exceed 15 months. Typical financial year ends are:
  &bull 31st March;
  
  &bull 31st December; and
  
  &bull 30th April.
  
   
  
• The HK Tax year is 1 April to 31 March. The date on which the company's financial year end falls determines in which tax year the results must be reported. For example 31 March 2004 falls in the Tax Year 2004 whereas 30 April 2004 falls in the Tax Year 2005


• Requirement to keep accounts for all transactions which include:
  
  &bull all amounts received and paid with regards to receipts and expenditure;
  
  &bull all sales, purchases and other income; and
  
  &bull all assets aquired and liabilities incurred.
  
   
  
• Companies in HK either employ an accounts clerk or out source the accounting function to a service provider such as LLB Accounting Services Ltd.


• Corporate Bank accounts can be opened at most of the major financial institutions in Hong Kong and the decision for which bank to use may depend on the nature of your business, the location of branches and banks currently used by your major clients.


• Hong Kong Accounting Standards (HKAS), issued by the Hong Kong Institute of Certified Public Accountants, lay down the generally accepted accounting practice (GAAP) to be adopted in Hong Kong.


• In the absence of a HKAS, HK Statements of Standard Accounting Practice (SSAP) provide the GAAP. The HKAS issued to date are bringing HK in line with International Accounting Standards


• Annual Statutory Audits can only be performed by Certified Public Accountants (Practising)