Companies that are incorporated outside Hong Kong but have a place of business in Hong Kong are subject to the same reporting requirements as a Hong Kong company.
The basic requirements are that the foreign company has to register its business with the Business Registration Office of the IRD and to submit Profits Tax returns issued to it.
If foreign companies are required to publish their financial statements under the laws or regulations of their place of incorporation, they should also file financial statements in the annual return to the HK Registry.
Where a company is incorporated in a jurisdiction whose laws do not require accounts to be audited and no audit has been performed on the company’s accounts, the IRD will accept unaudited accounts filed in support of the return.
If an audit has actually been carried out, even when there is no such requirement under the laws of the relevant jurisdiction, the audited accounts should be submitted with the return.
Foreign companies whose securities are publicly traded on the Hong Kong Stock Exchange may prepare financial statements in accordance with either the HKFRS or the IFRS or, under certain limited conditions, other reporting frameworks such as the China Accounting Standards for Business Enterprises (ASBE) or the US Generally Accepted Accounting Principles (US GAAP).