Updated 2025: PTR Filling And Audit Requirements for Hong Kong Offshore Company

1. Audit Requirements Regulations

According to the auditing rules in Hong Kong, all offshore companies incorporated in Hong Kong must have their financial statements audited by a registered CPA (Certified Public Accountant). The purpose of the audit is to ensure that the information and documentation submitted to the IRD (Inland Revenue Department) is accurate and free from internal bias. To avoid any miscalculations and false audit reviews, the IRD requires a third-party audit review of the accounts and financial statements of companies in Hong Kong.

In addition to the annual audit, offshore companies in Hong Kong are required to file profit tax returns (PTR) with the IRD. It is important to note that offshore companies earning income outside Hong Kong may be eligible for tax exemption under the territorial tax system in Hong Kong. However, the company must still file tax returns and comply with all regulatory requirements.

Regarding the audit timeline, Hong Kong offshore companies must submit audit reports and tax returns 18 months after establishing the company in the first year, and 12 months after the Financial Year end of the company for the following years. Statutory Audits of Hong Kong Companies must be prepared prior to the filling of PTR to the IRD. The deadline for PTR filling of Hong Kong companies are as follow:

2. Tax Filing and Reporting Procedures

To comply with the annual compliance in Hong Kong, the company needs to provide financial statements in accordance with Hong Kong accounting standards to file annual tax and annual returns. Financial statements to be presented to auditors should include:

• Balance sheet
• Income statement
• Bank statements
• Ledger of business transactions
• Business / Transaction Invoices
• Expenditure receipts
• Contracts
• Other relevant accounting documents

Penalty for Non-Compliance

Failure to comply with the audit and filing requirements can result in severe penalties for offshore companies. These penalties include: fines, late filing charges, or in extreme cases, the company will face a court summons and the potential of company dissolution. Therefore, it is crucial for companies to ensure meeting the audit and reporting deadlines every year.

3. Why is G.O.C a trusted partner in this section?

With inclusive accounting & tax works, the Hong Kong Certified tax accountants of G.O.C will ensure that your company’s financials are properly prepared & strategized to your best interests. We prepare reports, provide financial advice, sign off accounts and file documents to the authorities, giving you peace of mind that your company’s legal obligations will be properly fulfilled.

Here’s what we can offer with our accounting services:

• • Powerful Cloud-based Software: Automatize your accounting & tax planning process with advanced cloud-based software.
  • Intensive Consulting Approach: Prioritize accuracy & business tax goals to provide appropriate strategic advice.
  • Quality Experts & Customer Services: Receive dedicated support from our experienced experts and customer care team.
  • Ethical & Confidential: Maintaining the client’s confidentiality & best interests is our utmost priority.

Conclusion 

The audit requirements for offshore companies in Hong Kong reflect the jurisdiction's continued commitment to transparency and business integrity. All offshore companies in Hong Kong are required to prepare an audit report, maintain accurate financial records, and submit tax returns on time. Adhering to these requirements will help businesses avoid penalties and ensure good standing with the authorities in Hong Kong.

If you have concerns about auditing requirements after the incorporation, Global Offshore Company is here to assist you. The audit fees for Hong Kong offshore companies are generally based on revenues/turnover as well as total annual transactions. Please contact your Hong Kong Tax Professional at Global Offshore Company for a detailed quotation.