Can an overseas or group auditor audit my Hong Kong company instead of a local one?
Not for the statutory audit. Only a practice unit can be appointed as auditor of a Hong Kong company, so an overseas firm would need to be a Hong Kong registered practice unit. A group auditor can still work with the local auditor on group reporting.
The rule Section 393 limits appointment as auditor of a company to a practice unit. Practice units are registered in Hong Kong through the AFRC. An overseas firm without that registration cannot sign the Hong Kong statutory audit report.
Common set-ups for foreign-owned companies
- Local statutory audit + group reporting. A Hong Kong practice unit audits the Hong Kong company; the parent's group auditor issues instructions and receives reporting packages. The two auditors communicate under their own standards.
- Network firms. The Hong Kong member of an international network is often the local auditor and the group auditor's contact.
Where an overseas name might still appear
- IRD's circular allows a Hong Kong branch of a foreign company to file unaudited branch accounts with specified supporting information if the foreign company is audited abroad, but that is a branch, not a Hong Kong limited company.
- Non-Hong Kong companies registered in Hong Kong have different rules (Part 16).
Practical advice Ask the group auditor for its reporting deadlines and templates early. The Hong Kong auditor then plans the work around them.
Independence rules apply to the Hong Kong auditor and, depending on the group structure, the wider network.
Legal basis
- Companies Ordinance (Cap. 622), s.393
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- Do I need consolidated accounts if my Hong Kong company has subsidiaries?A holding company must normally prepare consolidated statements and have them audited. There are exceptions for wholly owned subsidiaries and, with notice, partly owned ones, and for reporting-exempt groups, which may exclude some subsidiaries.
- My Hong Kong company claims its profits are offshore. Do I still need an audit?Yes. An offshore claim is a tax position; it does not change the Companies Ordinance audit duty. IRD still expects audited accounts with the return, plus a statement of reasons and supporting details for the offshore claim.
- Does the audit cover the Significant Controllers Register?Not as a stated part of the audit report. The Significant Controllers Register is a separate Companies Ordinance duty of the company. Auditors may still ask who owns and controls the company when assessing related parties and client acceptance.
- Why does my auditor ask for ID and source-of-funds information?Audit firms are regulated for anti-money laundering and counter-terrorist financing, and AFRC inspects firms' compliance. Firms therefore verify who owns and controls a client before accepting it, which is separate from the audit tests.
- Does every Hong Kong limited company need an audit?Yes. Every Hong Kong company must have an auditor for each financial year and its financial statements audited, whatever its size or whether it trades. The only company that escapes is a qualifying private company that has validly become dormant under s.5 and s.447 of the Companies Ordinance.