Regulations
In Hong Kong, except for the first financial year, a general meeting of shareholders is required to be held within 9 months from the end of the accounting year (Sec. 610: Companies Ordinance). Additionally, regardless of whether a company is listed or non-listed, a Certified Public Accountant’s audit is mandatory (Sec. 405: Companies Ordinance).
Furthermore, although there are exemption criteria, even non-listed companies are generally required to prepare consolidated financial statements (Sec. 379(2): Companies Ordinance). This is the reason why Japanese subsidiaries with a parent company in Hong Kong are also subject to financial statement audits.
However, for non-listed Hong Kong companies, since the general meeting is often held 9 months after the financial year-end, there is usually no urgency to conduct the audit immediately. In many cases, completing the audit by August to September for March year-end companies or by May to June for December year-end companies is considered sufficient.
At our firm, we conduct audits for such Japanese subsidiaries of Hong Kong-based companies while collaborating with the auditors of the parent company. We also provide consultations and estimates, so please feel free to contact us.
Please here for frequent asked questions (FAQ)
Our Advantageous Points
・A certified public accountant with experience in auditing a Japanese subsidiary of a major audit firm handles the engagement.
・They offer flexible advice on accounting standards such as IFRS and US-GAAP.
・They also cater to requests for reporting and explanations in English.
・The level of service provided is comparable to that offered by major audit firms.
・Due to a small and efficient team, the workload is minimized, resulting in reasonable audit fees.
Please click here for detailed information regarding our service fees.
