FAQs

1. How does our Accounting Services Work?

Step 1:

Accounting system implementation

We will help you setup a tailored account based on your unique business operations
 

Step 2:

Training

Our advisor to provide training and consulting session to your team on using the software
 

Step 3:

Bookkeeping

Simply take a photo or scanned copy of all your receipts and upload them to cloud storage solutions. 

We will take care of the rest!

2. What is an Audit and Why is it Necessary? 

Audits are examinations of a company’s financial reports, conducted by an independent party for the purpose of complying with the disclosure requirements set out in the Hong Kong Company Ordinance and tax obligations outlined in the Inland Revenue Ordinance.
Pursuant to this Ordinance, all Hong Kong incorporated companies are statutorily required to audit their financial reports on a yearly basis. Financial reports will include a balance sheet, an income statement, a statement of changes in equity, and a cash flow statement. 

3. Can I handle the Statutory Audit myself?

The purpose of conducting an statutory audit in Hong Kong is to obtain a true and accurate representation of the financial statements of a company, without any internal bias. In Hong Kong, the financial statements, profits, and taxes payable to the government are usually verified and audited by a third party. 
As the financial statements and tax returns of a company must be compiled without bias, companies cannot conduct the audit themselves. Audits must be completed by a neutral third party.
However, accounting can be done internally. Typically, a company can use their internal staff or professional accounting firm to conduct bookkeeping activities. In the event that an audit is conducted, auditors will rely on the internal records kept by a company’s accounting staff. 

4. How should one prepare for an Audit and Tax Filing?

To complete a successful audit, a company should complete / prepare the related documents to improve the audit process, contact us to get the audit preparation checklist!

5. How can a Professional Audit Firm help?

1. Professional audit firms like BAFS(HK) can greatly improve the audit and taxation process of a company. With our team of qualified professionals, we can assist clients in meeting their statutory audit by reviewing and ensuring the validity and legality of your financial records, and by advising on how to be more tax efficient and compliant. 

2. With the daily stress associated with running a business, thinking about accounting and auditing is often the last thing you want to do. If you’ve been thinking of outsourcing services for your accounting and bookkeeping, our team is happy to assist. 

3. Outsourcing your accounting and bookkeeping tasks will allow you to get back to the part of your company that you love. Rather than devoting your efforts to paperwork and administrative tasks, you’ll free up substantial time to focus on the core aspects of what your business does!

4. Our audit firm,
BAFS(HK) is well-versed in all facets of compliance, auditing, accounting and more. We will help you manage your compliance obligations to keep your risk-levels down. With BAFS(HK), you can expect a personalised approach and top-level support for all your businesses accounting and taxation needs. 

6. When do I need to submit my first Profits Tax Return? 

The IRD will generally issue the first Profits Tax Return for newly incorporated businesses 18 months after the date of their commencement. However, the IRD may issue a Provisional Profits Tax Return at an earlier date where circumstances warrant.
Upon receipt of a Profits Tax Return, the taxpayer should submit the return along with any required supplementary forms within 1 month from the date of issue. The compliance date of submission for each Profits Tax Return will be specified on page 1 of the Profits Tax Return. 

7. Can I extend the Filing Deadline for Profit Tax Return?

When you appoint BAFS(HK) as a tax representative, you can apply for an extension of the Profits Tax Returns and extend the filing period to the following dates:
 

- Accounting year end date ranged from 1 April to 30 November - no extension and submission deadline is in May 2019

- Accounting year end date range from December 1 to 31 December - can be extended to 15 August 2019

- The accounting year end date ranges from January 1 to March 31 - can be extended to 15 November 2019 or 31 January 2020

8. What are the Consequences if I didn’t file the Profit Tax Return on time?

To the extent that a taxpayer fails to submit their tax return on time, they may be required to pay a penalty or may even face prosecution. A further consequence is that the taxpayer in question may be liable to pay increased tax. The maximum penalty for non-compliance is HK$10,000 plus treble the amount of tax undercharged. 
In situations where taxes have been underpaid, the IRD may impose an additional 5% of the taxable amount as penalty.

9. What is a Company Secretary? 

Firstly, a company secretary is not the same with your clerk. On the contrary, it holds a high rank in your firm and it is appointed by the directors of a firm. Furthermore, they need to work and interact with the directors and shareholders of the company. Moreover, they are also responsible for communicating with the government and legal bodies (e.g. the Registrar of Companies, IRD, SFC, and the Stock Exchange of Hong Kong). Finally and most importantly, they make sure that the organisation stick with the rules. 

10. Who can be a Company Secretary? 

Hong Kong company secretaries can be either:
An individual ordinarily residing in Hong Kong; or 
A body corporate, having its registered office or a place of business in Hong Kong 
A director of a Hong Kong company may also, at the same time, act as the company secretary. However, private Hong Kong companies that only have a sole director cannot have that individual also act as the company secretary.

11. What does a Company Secretary do and when would Require to be Appointed? 

The general duties of a company secretary are to ensure that the company is in compliance with the regulations regarding the organisation of the meetings of directors and shareholders. Company secretaries must be appointed with effect from the date of the Hong Kong company incorporation. The company secretary will be mentioned in the Hong Kong company certificate of incorporation.

12. What is a Company Secretary so important to your Business and how’s our Professional help?

A capable company secretary is vital to a company success, given that their chief responsibilities involve ensuring their company compliance with all laws and regulations that are related to the working of a business. 
The
BAFS(HK)  offers a full-range of specialized company secretarial services, such as filing annual return, providing registered address and being your company secretary. As a result of our familiarity with Hong Kong company laws and regulations, we have obtained extensive experience helping local and international companies comply with their Hong Kong statutory obligations. You will no longer have to worry about staying up to date with their statutory obligations. We will represent your company for all government filings and requirements to ensure excellent standing of your company with the Hong Kong government and their relevant authorities.

13. Can I change my Company Secretary? 

Yes you can. If you choose to change your corporate services to BAFS(HK), we will facilitate an easy transfer of responsibilities. We will take over all the documents and registers from your current provider and process all the necessary paperwork on your behalf. We guarantee a seamless transition.