When do I submit my first audit report to the IRD?

• If you have formed a HK company, you’ll receive your first Profits Tax Return (PTR) in around 18 months after the date of incorporation, and so you’ll need to well prepare your accounting records and submit your first audit report together with the completed tax return to the IRD within a 3 month submission period. 
• Thereafter, you’ll receive your PTR once a year, which means you have to prepare your accounting records and audit report every year.

Can I handle the accounting & audit work by myself?

• Surely you can handle the accounting work on your own, whilst your audit work needs to be managed by a HK Certified Public Accountant (CPA).
• The advantage of getting a professional firm to take care of your accounting reports is that it is very important to build a good foundation for your financial report structure from the start - with a benefit that can be felt later when the company develops into a more complicated business.
• Some might think they can handle their accounts and audit part by just passing some simple bookkeeping records to the CPA for audit use. It is actually infeasible as those records are not sufficient; a full set of P&L, Balance Sheet, etc. must be prepared in a proper way for the auditor to assess yearly. What’s more, if your reports were built well, you’ll stand a good chance to execute tax efficiency when making profits.