FAQs - CPA Firm

Applicants are required to complete and submit “Application for the Registration of a Firm Name and Firm” (Form FIRM-1) through the AFRC Online Registration System, together with the application fee and all necessary supporting documents.

Please refer to the AFRC’s Guide for the Registration of Firm Names and Firms paragraphs 3.3.3 to 3.3.5 for details of the application procedures and supporting documents.

A CPA firm should register its name in English as well as in Chinese, if it has or in fact uses both English and Chinese names. A CPA firm name will only be approved if it:

• is not the same as a firm name already registered under the Accounting and Financial Reporting Council Ordinance (Cap. 588) (“AFRCO”);
• does not, in the opinion of the AFRC, so nearly resemble a firm name already registered under the AFRCO as to be likely to cause confusion; and
• is not, in the opinion of the AFRC, misleading, offensive or otherwise contrary to the public interest.
   

A CPA firm name can broadly be divided into three categories:

• personalized name;
• the name of an overseas / international accountancy practice registered outside Hong Kong; or
• other non-personalized (trading) name.
   

In the case of categories (A) and (B) above, the AFRC will normally expect that the firm name satisfies the following additional criteria:

• where the firm name is a personalized name:
  • the name is sufficiently indicative of the names of the sole practitioner or full-time practising partner(s), but not any other persons; and
  • where the applicant is a sole practitioner, the name should include the initials or other names of the sole practitioner in addition to his or her surname (e.g. “A.B. Chan & Co.” instead of “Chan & Co.”); and
• where the firm name is the name of an overseas / international accountancy practice registered outside Hong Kong:
  • the applicant should be properly authorized by the overseas / international accountancy practice concerned to use the name; and
  • the overseas / international accountancy practice concerned should be duly registered under the jurisdiction of an accountancy body accepted by the AFRC (i.e. an International Federation of Accountants (“IFAC”) member).

Pursuant to section 20AAZE of the Accounting and Financial Reporting Council Ordinance (Cap. 588), all partners of a CPA firm practising accountancy in partnership need to be certified public accountants registered with the Hong Kong Institute of Certified Public Accountants (“HKICPA”); and at least two-thirds of the partners are certified public accountants (practising) registered with the AFRC. As such, you cannot register a CPA firm with individuals who are not certified public accountants registered with the HKICPA or are not certified public accountants (practising) registered with the AFRC.

Yes, if you can satisfy all issuance criteria for the issue of a practising certificate and all registration criteria for registration of a CPA firm.

Please refer to the following guides issued by the AFRC:

• Guide for the Issuance of Practising Certificates for details of the issuance criteria for the issue of a practising certificate; and
• Guide for the Registration of Firm Names and Firms for details of the registration criteria for the registration of a CPA firm.

You have to complete and submit “Notification for Change in Particulars of a CPA Firm” (Form FIRM-3) through the AFRC Online Registration System, together with all necessary supporting documents, to obtain the AFRC’s approval on the proposed name before making the change.

If the AFRC approves the proposed name, you may proceed to change the firm name. You are required to submit the following documents online within 14 days of the change, to complete the name change request:

a. certified copy of the Business Registration Certificate bearing the new name of the CPA firm; and

b. specimen signatures of the new name of the CPA firm signed by the sole practitioner / all practising partners and authorized signatories on a separate sheet.

You must notify the AFRC of the change by completing and submitting “Notification for Change in Particulars of a CPA Firm” (Form FIRM-3) through the AFRC Online Registration System within 14 days of the change.

Where the CPA firm changes its address of registered office, the notification should be accompanied by the following documents:

• documentary evidence to prove the ownership of the property such as land search results, if the CPA firm is the landlord of the registered office; or
• a letter of consent from the landlord or leaseholder authorising the use of his or her or its premises as the CPA firm’s registered office, if the CPA firm is not the landlord of the registered office; and
• a copy of the Business Registration Certificate bearing the new address of registered office.

No, the annual renewal fees are non-refundable.

You are required to notify the AFRC of the change in partners composition by completing and submitting “Notification for Change in Particulars of a CPA Firm” (Form FIRM-3) through the AFRC Online Registration System within 14 days of the change.

The notification should be accompanied by the following documents:

• where the change is related to an admission of a practising partner who is currently practising on a part-time basis or will resign / has resigned from the present / last employment and intends to practise on a full-time basis in the name of the CPA firm, documentary evidence to prove the resignation of the practising partner from the present / last employment and that he or she will not engage in other full-time employment; or
• where the change is related to an admission of a non-practising partner, copies of the non-practising partner’s identity document (for example, Hong Kong identity card or passport) and the certificate of registration as a certified public accountant issued by the Hong Kong Institute of Certified Public Accountants (HKICPA).
   

You should also ensure that your CPA firm’s partners composition complies with the following registration criteria after the change:

• all the partners are certified public accountants registered with the HKICPA; and
• at least two-thirds of the partners are certified public accountants (practising) registered with the AFRC.

You are required to notify the AFRC of the registration of authorised signatories by completing and submitting “Notification for Change in Particulars of a CPA Firm” (Form FIRM-3) through the AFRC Online Registration System within 14 days of the change.

You are also required to notify the AFRC in the same way when withdrawing such authorisation. You also need to ensure that a nominated authorised signatory is a certified public accountant (practising) registered with the AFRC, who is authorised to sign on behalf of your CPA firm.

Regardless of the date of registration of your CPA firm, the registration of your CPA firm expires on 31 December of the year in which the registration takes effect.

You may apply to the AFRC for renewal of your CPA firm registration no later than 15 December of the year in which the current registration expires. The AFRC will accept renewal applications from 1 November of each year.

You are required to complete and submit “Renewal Application for a CPA Firm” (Form FIRM-2) through the AFRC’s Online Registration System. The Online Registration System can be accessed with your CPA firm’s login ID and password.

If you do not submit the renewal application to renew your current CPA firm registration, your current CPA firm registration will expire on 31 December this year and you are prohibited from issuing statutory audit reports under the name of your CPA firm from 1 January next year. If you intend to continue your practice through a CPA firm, you need to re-apply for the registration of a CPA firm by completing and submitting “Application for the Registration of a Firm Name and Firm” (Form FIRM-1) through the AFRC Online Registration System, together with all necessary supporting documents.

You have to complete and submit “Application for De-registration of a CPA Firm” (Form FIRM-4) through the AFRC Online Registration System to cancel the CPA firm registration and remove the name of the CPA firm from the AFRC’s register of CPA firms.

However, the AFRC will not process such application if partners’ declaration does not bear the signatures of all partners. Meanwhile, a notation “in dissolution” may be added after the firm name in the AFRC’s register of CPA firms.

No, if you intend to continue to practise as the sole practitioner or a practising partner of your CPA firm, you must renew your practising certificate.

However, if you intend to change your role from a practising partner to a non-practising partner of your CPA firm, you may consider not to renew your practising certificate with the AFRC if your CPA firm can still satisfy the following registration criteria:

• all the partners are certified public accountants registered with the Hong Kong Institute of Certified Public Accountants; and
• at least two-thirds of the partners are certified public accountants (practising) registered with the AFRC.

The AFRC maintains a register of CPA firms and corporate practices containing the full name of each CPA firm / corporate practice and the address of its registered office on our website. The register is also available for public inspection during office hours at our office.