Many clients will arrange complicated structures when registering a Hong Kong company. Will these structures affect the audit and tax declaration of a Hong Kong company? See the case study below.

Recently, there was a case in which three natural persons were wholly owned shareholders to set up threeBVICompany, three companies as shareholders, and the establishment of a Hong Kong companyA, Hong Kong CompanyARe-establish a wholly owned Hong Kong companyB.

Hong Kong companyATo do the audit tax declaration, in addition to do their own financial statements, but also must be Hong Kong companyBConsolidated financial statements becauseA100%controllingBAt the same timeAThe top shareholders do not100%Holding company in Hong KongATherefore, the obligation to audit the merger in the tax return is in Hong Kong companiesA.

As the Hong Kong companyATo do certain business with a bank, the bank needs a special audit report, which clients do not want to be reflected in the audit reportBThe financial data of the Hong Kong companyAWill need to be held during the accounting periodBThe shares of the company are transferred out, so that this long-term investment is disposed of, so it doesn't show up on the balance sheet, but it shows up in the income statement as a gain from the disposal of this long-term investment.

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