Due to the differences between annual audits of Hong Kong companies and those in mainland China, many managers who have registered Hong Kong companies are not familiar with the knowledge of annual audits of Hong Kong companies. In addition, most people are not clear about the difference between annual audits and tax reporting for Hong Kong companies, and may not be able to distinguish between the time of annual audits and audits, as well as the specific content of annual audits and audits. Today, the editor will share with you these questions.
What is Hong Kong company annual audit?
Normally operating Hong Kong companies need to undergo an annual audit, which includes two aspects: the annual declaration form and the renewal and renewal of the business registration certificate.
The Hong Kong company annual declaration form means that after the Hong Kong company has been registered for one year, it is necessary to prepare an annual declaration document for the Hong Kong company, and to declare it every year thereafter. The content of the declaration document includes relevant information such as the company's shareholders, legal secretary, registered address, directors, etc.
The process of updating and renewing a business registration certificate also means that when a Hong Kong company reaches the year of registration, it needs to apply for and obtain a new year's business registration certificate, also known as annual review.
What will happen if Hong Kong companies do not undergo annual audits?
Hong Kong companies need to undergo an annual audit once a year, and not doing so will have a significant impact.
1. If a Hong Kong company does not undergo an annual audit, fines will be imposed after 42 days, and the fines will be accumulated. The more overdue, the more fines will be imposed.
2. If it is necessary to open a bank account or handle business for a Hong Kong company, it will be greatly affected, and there is a risk of company directors being detained by customs if they have traveled through Hong Kong.
3. Long term non annual review of Hong Kong companies will result in the company being expelled and its directors and shareholders being blacklisted. May result in restrictions on directors' passage through Hong Kong, preventing them from registering Hong Kong companies and listing for financing in Hong Kong in the future.
4. If the company annual audit is not processed normally, the tax bureau will report the relevant information to the court and enter legal proceedings.
The following situations may result in court summons and fines
1. Failure to submit the profits tax form on time
2. Failure to pay fees on time
3. Failure to submit the annual declaration form on time
4. Failure to promptly deregister non operating companies
Ignoring court summons during the annual review of Hong Kong companies can result in a significant accumulation of fines. The company's directors and shareholders have left a negative record with the Hong Kong government and have been blacklisted. They may be arrested and questioned at any time upon entering Hong Kong.