Do Dormant Companies Need Accounting and Audit in Hong Kong?

No, but only if the company is formally declared dormant under the Companies Ordinance. In Hong Kong, companies generally need to prepare audited financial statements to support their Profits Tax Return, even if there is no business activity. Filing a NIL Profits Tax Return does not automatically exempt you from these obligations.

To qualify for an audit exemption:

• The company must pass a special resolution declaring its dormant status.
• The resolution must be registered with the Companies Registry.

Once registered as dormant, you aren't required to prepare audited financial statements for the dormant period. Without this formal registration, directors remain responsible for preparing and auditing financial statements, even if no income or transactions occurred.