HONG KONG

Meru Accounting specializes in providing expert Accounting and Bookkeeping services in Hong Kong. Our team possesses deep expertise in accounting and bookkeeping software commonly used in Hong Kong, ensuring accurate and efficient financial management for our clients. With extensive experience in the local market, we deliver tailored solutions that meet the specific needs of businesses operating in Hong Kong.

1. Goods and Services Tax (GST): 

Hong Kong does not impose a comprehensive GST or Value Added Tax (VAT) on goods and services. Instead, it relies on other forms of indirect taxes.

2. Stamp Duty:

 Although primarily a duty on documents, stamp duty also functions as an indirect tax when applied to specific transactions such as stock transfers.

3. Environmental Levy:

 Levied on certain products like plastic shopping bags to reduce waste and encourage recycling.

4. Betting Duty:

It is the Duty levied on betting transactions.

5. Vehicle License Fees: 

Fees levied on vehicles based on engine size and type

In Hong Kong, several bookkeeping and accounting software solutions are popular among businesses, few of them are listed below;

1. Xero:

 Xero is widely used globally and has gained popularity in Hong Kong for its cloud-based accounting features, ease of use, and integration capabilities.

2. QuickBooks:

 QuickBooks is another popular choice among small to medium-sized businesses in Hong Kong, known for its user-friendly interface and comprehensive accounting tools.

3. MYOB:

 MYOB (Mind Your Own Business) has a strong presence in Hong Kong with its accounting and business management software tailored for small and medium enterprises.

4. Sage 50:

 Sage 50 is used by many businesses in Hong Kong for its robust accounting features and customization options suitable for various industries.

5. Wave:

 Wave is known for its affordability and is popular among startups and small businesses in Hong Kong for its basic accounting and invoicing features.

6. SAP Business One:

 SAP Business One is an integrated enterprise resource planning (ERP) solution that is preferred by larger businesses in Hong Kong for its comprehensive financial management capabilities

In Hong Kong, the currency used for bookkeeping and financial transactions is the Hong Kong Dollar (HKD), and its ISO currency code is HKD. It is subdivided into 100 cents. The Hong Kong Dollar is freely traded on the foreign exchange markets and is widely accepted for all financial and commercial purposes within Hong Kong.

In Hong Kong, English and Chinese (both Cantonese and Mandarin) are commonly used languages for bookkeeping and accounting purposes. English is widely used in Hong Kong's business and financial sectors, including for official documents, financial statements, and business correspondence. Many accounting firms, multinational companies, and businesses use English as their primary language for bookkeeping.

Many businesses in Hong Kong maintain bilingual practices, where both English and Chinese are used interchangeably depending on the context and the preference of the parties involved.

In Hong Kong are governed primarily by the Companies Ordinance (Cap. 622) and the Hong Kong Financial Reporting Standards (HKFRS).

1. Appointment of Auditors:

• Auditors must be appointed within three months of incorporation for new companies, and subsequently at each annual general meeting (AGM). The auditors must be approved by shareholders.

2. Audit Standards:

• Audits must be conducted under Hong Kong Standards on Auditing (HKSAs) issued by the Hong Kong Institute of Certified Public Accountants (HKICPA).

3. Filing of Audited Financial Statements:

• Audited financial statements must be presented at the AGM for shareholders' approval and filed with the Companies Registry.

Managing payroll in Hong Kong involves several key considerations and requirements. Here are the main aspects you need to be aware of:

1. Statutory Requirements:

Employers in Hong Kong are required to comply with various statutory requirements related to payroll, including the Employment Ordinance and the Mandatory Provident Fund (MPF) Schemes Ordinance.

2. Salary Payments:

Payment and Salary should be made in Hong Kong dollars unless otherwise agreed with the employee.

3. Taxation: 

Hong Kong operates a territorial tax system. Employees are subject to salaries tax, which is calculated based on their income earned in Hong Kong. Employers are required to withhold salaries tax from employees' salaries through the Pay-As-You-Earn (PAYE) system.

4. Mandatory Provident Fund (MPF):

MPF is a compulsory retirement savings scheme for employees and self-employed persons in Hong Kong. 

5. Employment Contracts and Documentation:

It's mandatory to provide employees with a written employment contract specifying terms and conditions of employment, including salary details, benefits, and working hours.

In Hong Kong, financial reporting standards are primarily guided by the Hong Kong Financial Reporting Standards (HKFRS), which are largely converged with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).

1. HKFRS Adoption:

• Hong Kong has adopted HKFRS as the accounting standards for preparing financial statements. HKFRS are based on IFRS with modifications and interpretations relevant to Hong Kong's regulatory environment.

2. Application of HKFRS:

• HKFRS are applicable to all companies listed on the Hong Kong Stock Exchange, as well as other entities required to prepare financial statements under the Companies Ordinance.

3. Financial Statements:

• Companies must prepare annual financial statements that comply with HKFRS. These statements include a balance sheet, income statement, statement of changes in equity, statement of cash flows, and notes to the financial statements.

4. Consistency and Fair Presentation:

• Financial statements must be prepared on a going concern basis and present a true and fair view of the company's financial position, performance, and cash flows.

5. Disclosure Requirements:

• HKFRS prescribes specific disclosure requirements to ensure transparency and provide users of financial statements with relevant information about the company's financial performance and position.

As a bookkeeping and accounting company we provide many features to Businesses and companies to keep records and finances accounts at a particular space. We also keep information regarding indirect tax laws of Hong Kong like GST, stamp duties, environmental laws taxes etc.

Meru Accounting also initiates effective payroll processes such as Mandatory Provident Fund salary payments of employees. Maintaining all the records in technological software and databases. Acquiring audit requirements data as well as GAAP requirements and records of statements include a balance sheet, income statement, statement of changes in equities.