How often do Hong Kong company audits take place

Hong Kong is a region with a high degree of internationalization, attracting many enterprises to register and establish companies here. Companies registered in Hong Kong are required to comply with the audit requirements stipulated by the Hong Kong Company Law. So, how often do Hong Kong companies conduct audits? This article will provide you with detailed answers.

1、 Basic requirements for auditing Hong Kong companies

According to the Hong Kong Company Law, all companies registered in Hong Kong are required to undergo audits. The purpose of an audit is to ensure that the company's financial statements reflect the company's financial condition and performance truthfully, accurately, and completely. The audit includes reviewing the company's financial statements, inspecting the company's books and records, and evaluating the company's internal control system.

2、 How often do Hong Kong companies conduct audits?

According to the Hong Kong Company Law, all companies registered in Hong Kong are required to undergo an annual audit. The audit should be completed within 6 months after the end of the company's fiscal year. For example, if the company's fiscal year is from January 1, 2021 to December 31, 2021, then the company needs to complete the audit before June 30, 2022. It should be noted that if the number of shareholders of the company does not exceed 50 and the company's annual total income does not exceed HKD 10 million, the company can apply for exemption from auditing. However, even if the company applies for exemption from auditing, the company's financial statements still need to be prepared and submitted.