Our Services - Preparing Company Accounts


Accounting - Overseas Company Registered in Hong Kong
The information below is a summary of what we are normally asked:

• As the Branch office is simply an extension of the Overseas Company (OSCo.) the year end adopted will be the same as the OSCo.


• 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:
  • all amounts received and paid with regards to receipts and expenditure;
  • all sales, purchases and other income; and
  • all assets aquired and liabilities incurred.
  
  
• OSCo.s with Branches 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


• There is no requirement for the Branch to undergo an Statutory Audit in HK. The Branch will normally receive a Profits Tax Return annually which must be submitted to the IRD together with a Certified Balance Sheet and Profit and Loss Statement for the financial year.