When we do the Hong Kong audit and tax declaration, we often encounter the situation that there are subsidiaries. How do we deal with this situation in general?

If a company is established in Hong Kong and there are subsidiaries, it is required to make a consolidated audit report. The customer is required to provide the audit report issued by the subsidiary, and the end date of the audit report should be the same as that of the parent company. Without the subsidiary's audit report, the auditor cannot confirm the value of the subsidiary. The auditor will issue a qualified audit report at the time of the audit.

But there is an exception, if the Hong Kong company has a subsidiary, but is owned by another company100%Holding, there is no need for an audit report out of the merger, because the merger obligations are in the upper parent company.

When doing the Hong Kong audit and tax declaration, I have a certain understanding of the company's organizational structure, otherwise it will bring risks to the company. Therefore, when doing the audit and tax declaration in Hong Kong, we must find a regular company, reasonably analyze the company's business model and operating conditions, and avoid some unnecessary risks.

CycloseThe company is committed to providing domestic and foreign customers with corporate audit, tax declaration, registration, annual inspection, tax planning and other services in Hong Kong, Singapore, Dubai and other regions. Efficient, rigorous, intimate service has been favored by many private enterprises, listed companies and large state-owned enterprises.