Reliable And Resourceful Accountants You Can Depend On
Accounting
Under the Hong Kong Companies Ordinance, the requirement is to keep accounting records that must be sufficient to show and explain the company’s transactions; disclose with reasonable accuracy the company’s financial position and financial performance; and enable the directors to ensure that the financial statements comply with the Ordinance. The Inland Revenue Ordinance requires every person carrying on a trade, profession or business in Hong Kong to keep sufficient records of income and expenditure to enable the assessable profits to be readily ascertained. Such records shall be retained for a period of not less than 7 years.
Taxation
Hong Kong taxation is well known for its low tax rate where taxes are levied on profits, salaries and property income with varying rates. Estate duty was completely abolished in 2006. Hong Kong has no sales or VAT tax nor is there any form of dividend or capital gain tax. Hong Kong tax is based on the “territorial” or “source” concept. As a general rule, only profits derived in Hong Kong are assessable for taxation and genuine offshore transactions are not subject to Hong Kong tax, although the Inland Revenue Department is extremely diligent in its determination of onshore and offshore profits.
Audit
Directors of a company incorporated in Hong Kong must prepare financial statements for each financial year complying with the statutory requirements of the Hong Kong Companies Ordinance. The audited financial statements together with the independent auditor’s report on the financial statements are required to be laid at AGM or sent to members within the prescribed period of time.
Company Secretarial Services
A private limited company must have a company secretary and at least one director who is a natural person (i.e. an individual). The sole director of a private company must not be the company secretary. A company limited by guarantee must have a company secretary and at least two directors, one of whom may be the company secretary. It must not have a body corporate as its director.
Annual Return
A local private limited company must in respect of every year deliver its annual return to the Registrar of Companies for registration within 42 days after the anniversary of the date of the company’s incorporation in that year (the prescribed time period). The annual return contains the particulars of the company such as the address of the registered office, shareholders, directors, company secretary, etc. as at the made up date of the return.
Deregistration
A local private company or a local company limited by guarantee, other than those companies specified in section 749(2) of the Companies Ordinance, may apply for deregistration. The company must be a defunct solvent company. A defunct solvent company which meets the required conditions may be dissolved by applying for deregistration under section 750 of the Companies Ordinance. Deregistration is a relatively simple, inexpensive and quick procedure for dissolving defunct solvent companies.
Company Formation
L & C Secretarial Limited provides Hong Kong company incorporation service for different forms of business entities:
- Private Company Limited by shares
- Company limited by guarantee
