Q：
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What types of companies could be formed in Hong Kong?
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A：
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Companies formed under Business Registration Ordinance (Cap. 310):
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Sole proprietorship
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Partnership
Companies formed under Companies Ordinance (Cap. 622):
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Public company limited by shares
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Private company limited by shares
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Public unlimited company with a share capital *
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Private unlimited company with a share capital *
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Company limited by guarantee without a share capital
* These companies no longer could be formed now.
Companies formed under Securities and Futures Ordinance (Cap. 571):
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Q：
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Is there any statutory requirement to carry out audit to the companies?
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A：
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There is statutory requirement to carry out audit for companies formed under Companies Ordinance (Cap. 622) and Securities and Futures Ordinance (Cap. 571).
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Q：
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What are the general audit requirements for companies formed under Companies Ordinance?
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A：
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The general requirements for audit are:
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A company’s director must prepare financial statements that comply with sections 380 and 383 (section 379);
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A company’s director must prepare director’s report complies with sections 390 and 543(2) and Schedule 5, contains the information prescribed by the regulation made under sections 451 and 452 (the “Regulation”), and complies with other requirements prescribed by the Regulation (section 388);
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An auditor must be appointed for each financial year (section 394);
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The financial statements prepared by the directors must be audited (section 405); and
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The financial statements must be laid before company’s members in annual general meeting (section 429).
The above requirements do not apply to a dormant company (section 477). A company is dormant if it passed a special resolution declaring that it would become dormant and delivered to the Registrar of Companies for registration (section 5).
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Q：
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How often is statutory audit required for companies formed under Companies Ordinance?
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A：
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Audit is required annually (section 379). A dormant company is exempted from annual audit (section 447). A company is dormant if it passed a special resolution declaring that it would become dormant and delivered to the Registrar of Companies for registration (section 5).
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FAQ
