Why we need Audit and Assurance

According to Chapter 622 of the Hong Kong Companies Ordinance, Hong Kong limited companies are required to appoint a practicing accountant to conduct annual audits and submit an audit report signed by a practicing accountant every year. In addition to dormant companies, the Inland Revenue Department also requires Hong Kong limited companies to attach financial statements audited by accountants when submitting profits tax returns.
In addition, audited financial statements must also be provided when borrowing from banks, applying for funding from the government, and financing from the private market.

Our services including

Our services including :

· Statutory audit
· Internal audit
· Litigation audit
· Merging and Acquistions Audit
· Migration Audit
· NGO Audit
· Project Assurance
–        Gross income report
–        Technology Voucher Programme (TVP)
–        Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD)
–        Film Development Fund (FDF)
–        Any other government subsidy

Hong Kong Tax

Hong Kong adopts “Territorial Source Principle” ^{note 1} and simple low tax rate policies, all persons or companies carry business in Hong Kong are liable to pay the tax in Hong Kong. (whether the person or company is incorporated in Hong Kong or not)

Hong Kong major tax divided into 3 categories :

· Profit tax
· Salaries tax
· Property tax

Hong Kong does NOT have :

· Sales tax
· Value added tax (“VAT”)/ Gross Services Tax (“GST”)
· Dividend tax ¹
· Capital gain tax ¹
· Bank interest ¹

The person in charge of the business shall submit a tax return to the Inland Revenue Department every year.
The tax return of the limited company or partnership is generally posted in April of each year and the salaries tax return is usually posted in May of each year from Inland Revenue Department.
The deadline for submission of tax returns is 1 month. However, profits tax return can be extended according to the financial year ended date of the company.

Our services including:

Providing tax advisory and tax planning (To minimize tax liabilities in a legitimate way)
· Acting as Tax Representative (Individual or Companies)
· Filling the tax return, tax computation and declare
–    Profit tax
–    Salaries tax
–    Property tax
–    Employer’s Return of Remuneration and Pensions
–   Remuneration paid to Persons other than Employees

· Applying for the extension of submission of tax return
· Applying for holdover of provisional tax
· Assisting for objection of tax assessment
· Assisting for handling the tax queries from IRD
· Assisting for applying the offshore income claims exemption
· Assisting for applying the tax certificate of resident status
Conducting tax field audit and investigation

What is Due Diligent

Due diligence is the process of carefully examining a potential investment opportunity to ensure that it is sound and in line with the investor’s risk tolerance and investment goals. This process involves researching, analyzing, and verifying the accuracy of financial statements, looking into the financial history of the company, and assessing the potential risks and rewards associated with the investment. The due diligence process helps investors make informed decisions and helps to protect their investments.

Major Scope of our financial due diligence engagement:

· Financial analysis, examine the financial statements and all related accounting records
· Review all the statutory records and tax related matters of the target company
· Review the major agreement or related contract
· Obtain the information of related parties relationship and verify the valuation of related parties transactions
· Overall site visit and physical inventory count
· Verify the existence, ownership and valuation of particulars of working capital, including current assets and liabilities
· Validate the financial data are genuine, accurate and recorded completely
· Identify any potential defects, unrecorded or understated liabilities and unpaid commitment
· Assess the credibility of the target company

Winding Up

Hong Kong Corporation can undergo members voluntary winding up when the company is solvent by passing a special resolution.
Major Scope of liquidator under voluntary winding up:
· Assiting in preparing the statement of affairs
· Preparing the minutes of the board of directors and extraordinary general meeting
· Acting as liquidator and complete the legal process
Hong Kong Corporation can undergo creditors voluntary winding up when the company is insolvent by passing a special resolution.