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.
Our Advantageous Points
- Certified public accountant are there with experience in auditing a Japanese subsidiary under instruction of Big4 firms.
- We offer flexible advice on difference of accounting standards between HKFRS and J-GAAP.
- We also respond 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.