Yes. Audit of financial statements is required for all companies, including companies falling within the reporting exemption, except dormant companies.

In Hong Kong, a company limited by guarantee (CLG) may be required to have an audit depending on its size and other factors. Generally speaking, a CLG is exempted from audit if it meets certain criteria:

  • It has total gross income of HKD 500,000 or less for the financial year;
  • It has total assets of HKD 3 million or less at the end of the financial year;
  • It has fewer than 5 employees on average during the financial year; and
  • It is not a subsidiary of a company that is required to be audited.
  • If a CLG does not meet the above criteria, it is generally required to have an audit. However, there are some exceptions. For example, a CLG may be exempted from audit if all members agree to the exemption, or if it is a charity that meets certain criteria.

It is important to note that the above information is for general guidance only and that the audit requirements for a CLG in Hong Kong can be complex. If you are unsure about whether your CLG is required to have an audit, you should consult a professional accountant or seek advice from the Companies Registry or the Inland Revenue Department.

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