Many clients often confuse the annual review of Hong Kong companies with the audit of Hong Kong companies. It is wrong to often review the year as an audit. After the annual review, the company no longer needs to audit, which is not the case. Now we will tell you in detail about their specific differences
Annual review of Hong Kong companies
After one year of operation, the company must apply to the government to continue to exist. The first is to apply to the Inland Revenue Department for a new business registration certificate for the following year and pay the government fee at the same time. The second is the annual return, which is not a financial statement, but a report that records the company's update, including the company's latest name, the number of shares in the company, the proportion of shares allocated, the shareholders' and members' board of directors, and details of the company's changes in the previous year. The above is collectively referred to as annual review or annual inspection.
· Annual audit of the operation process of the Hong Kong company
1. Confirm and sign the annual declaration: After one year of registration of the Hong Kong company, the Hong Kong company must make an annual declaration document based on the company's shareholders, directors, legal secretary, registered address and other information
2. Replacement of new business registration certificate: From the date of the company's establishment anniversary, a new business registration certificate should be obtained from the tax bureau every year. Expired business registration certificates do not need to be refunded, and the business registration fee for that year should be paid to the Inland Revenue Department.
3. Submission of annual review documents: The annual review materials to be submitted include: signed annual review power of attorney documents, annual declarations, annual declaration confirmation signed by directors or shareholders, register of major matters registered in Hong Kong company and valid id cards of all directors and shareholders.
audit
Generally speaking, an audit is a review of a company's financial position for the previous year. It is an independent accountant who is responsible for assessing the safety, reasonableness and legitimacy of a company's finances. Auditing is an important part of economic oversight. It mainly examines the authenticity, legitimacy and efficiency of finance, financial balance mixers, and other economic activities. It is external and independent. Depending on the purpose, audits can be divided into multi-purpose audits. Usually, we contact more tax audits, which are also known as tax audits. There are other purpose audits, which we call "special purpose audits".
· Audits include
Conduct accounts, audits, fill out tax forms, submit tax returns, withdraw tax certificates, assist in tax payment, answer tax questions, tax planning services, etc.
· Laws relating to audits in Hong Kong
If you encounter real (manual) or commission (commission) in the process of registering a Hong Kong limited company, please pay attention to the following guidelines:
1. Any person/event who obtains a salary or commission from a Hong Kong company will be subject to the jurisdiction of the Tax Authority of the Hong Kong Government;
2. If the salary is collected by a Hong Kong person or a Hong Kong company, it is sufficient to fill in the personal salary return at the end of April of each year and submit it to the Inland Revenue Department;
3. However, if the salary or commission is received by a non-Hong Kong person or a non-Hong Kong company, the company is entitled to withhold the relevant tax in order to pay the tax to the Inland Revenue Department;
4. If the Government is unable to find such a non-Hong Kong person or non-Hong Kong company, it will recover the corresponding tax from the Hong Kong company that issued the salary or commission;
5. Therefore, when encountering the above two items, it is necessary to retain the relevant information of the other party, that is, if you are not a Hong Konger, you need to retain your name, valid ID number and address;
6. If it is not a Hong Kong limited company, it is required to retain its company name, number and address of the Inland Revenue Department.