FAQ for Accounting in Hong Kong

Can Get Started HK provide me with Accounting service?

Yes. Get Started HK is an accounting firm. We are managed by a practising CPA in Hong Kong, and our accountants have 30+ years accounting experience.

What is the corporate tax rate in Hong Kong?

For Offshore company, the corporate tax rate can be 0%. For Onshore company, the corporate tax rate is 8.25% for the first 2 million of profits. For the rest of the profits, the corporate tax rate is 16.5%.

Does HK Offshore company need to submit accounting reports?

Yes. Even the corporate tax rate for offshore company is 0%, you still have to prepare and submit accounting reports to the HK government.

To apply for Offshore status, what documents should I provide?

Offshore status is based on a matter of fact. In order to qualify for offshore, company have to provide supporting documents, i.e. bank statements, invoices and expense receipts. Our accountant will present the facts (offshore) in the accounting reports.

How often do I need to submit accounting reports to the HK Government?

The Hong Kong Government will issue the first tax form 18 months after the date of incorporation. In other words, you have to prepare and submit your first accounting report in the 2nd year. After that, you have to submit accounting report on a yearly basis.

Do I need to submit accounting report on a monthly basis?

The Hong Kong Government will only ask you for the first report 18 months after the date of incorporation. Hence, there is no need to submit accounting report each month.

If I have no business operation, do I still have to submit accounting reports?

No need. If you have no business operation at all, there is no need to submit accounting reports yet. You just need to inform the Tax Department by submitting a NIL tax form.

What should I prepare for the account reporting? (Minimum)

Entrepreneurs should keep all bank statements, invoices and expense receipt properly. Ideally you should scan all documents and store them in your computer. You can share these documents with us through google drive, dropbox or by email at the end of each financial year.

Is there any recommended accounting software?

If you have less than 100 transactions each month, you can consider using a FREE accounting software – Akaunting – and this software is quite useful. 

Or you can just use Microsoft Excel to keep all your data. 

If you have thousands of accounting transactions each month, you can consider using the software – XERO. XERO is not cheap, but it is good for companies with many transactions. If you are our existing customer, you can ask our staff for a discount code for the XERO software.

Is it necessary to use an accounting software?

It is not necessary to use any accounting software. An accounting software just help you keep things organized internally. If you want to keep cost low, you can just pass our accountant all your data at the end of the financial year. We will prepare all the accounting reports for you.

What if I lose all my bank statements and invoices?

If you lose your folder for bank statements and invoices, it is impossible for our accountant to prepare and submit the accounting and auditing report. In the worst scenario, the Inland Revenue Department may open a file for investigation. Hence, if you lose your bank statements, you will need to contact your bank to retrieve duplicate copies. If you lose your invoices, you need to ask your customers to send you back the copies.

Is it a must to hire a HK CPA (Practising)?

Yes. The HK Inland Revenue Department will only accept audited accounting reports from a Hong Kong Practising CPA. They do not accept reports from an overseas accountant.