Question 1

Must a limited company conduct an annual audit?

Accepted Answer

Yes. The Hong Kong Companies Ordinance requires limited companies to appoint a Hong Kong practising accountant annually to audit accounts and submit audited financial statements to the IRD. This statutory requirement cannot be waived.

Question 2

How long must financial records be kept?

Accepted Answer

Under section 51C of the Inland Revenue Ordinance, financial records must be kept for at least 7 years. Failure to comply without reasonable excuse carries a maximum fine of HK$100,000.

Question 3

When must profits tax returns be filed?

Accepted Answer

The first tax return for newly incorporated companies is generally issued within 18 months of incorporation, then annually by specified dates. Late filing may result in penalties or prosecution. We provide full tax return filing services.

Question 4

Can a director also act as company secretary?

Accepted Answer

If a company has only one director, that director cannot also act as company secretary under section 475(2) of the Companies Ordinance. With more than one director, a director may also serve as company secretary.

Question 5

What qualifications must a company secretary have?

Accepted Answer

Hong Kong law does not require a company secretary to hold specific professional qualifications, but the company secretary must be a Hong Kong resident or a legal entity with a place of business in Hong Kong.

Question 6

What are the duties of a company secretary?

Accepted Answer

Key duties include: maintaining statutory records and company seal, arranging and minuting board and shareholder meetings, filing statutory documents with the Companies Registry, and assisting with changes to company structure.

Question 7

How long does company deregistration take?

Accepted Answer

The entire process generally takes 6–12 months, mainly depending on the IRD processing time for the notice of no objection. Outstanding tax matters may extend this.

Question 8

What are the conditions for applying for company deregistration?

Accepted Answer

Main conditions include: all members consent to deregistration, the company has not conducted business in the 3 months prior to application, and has no outstanding debts or legal proceedings.

Question 9

How long does it take to incorporate a Hong Kong limited company?

Accepted Answer

Standard applications are generally completed within 5–7 working days after submitting complete documentation. We also offer express same-day incorporation services.

Question 10

Can mainland China residents incorporate a Hong Kong company?

Accepted Answer

Yes. Mainland China residents can incorporate a Hong Kong limited company with valid identity documents and proof of address, without needing Hong Kong residency.

Question 11

What documents are needed to incorporate a company?

Accepted Answer

Required documents include: identity documents for all shareholders and directors, proof of address (within 3 months), company name (Chinese and English), share structure and articles of association. We provide a complete checklist.

Question 12

What needs to be done after incorporation?

Accepted Answer

After incorporation you typically need to: open a bank account, appoint a company secretary, apply for relevant licences based on business type, and set up accounting and payroll systems. We provide one-stop post-incorporation services.

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