No audit jurisdictions?

[inector]

Hi,

Curious which countries do not require auditing.

US LLC is one, until its not, but works for low volumes.

Singapore is, below 7M USD.

Any more?

 

[CyprusLawyer101]

Seychelles, bvi, belize, panama, nevis, marshall islands, vanuatu, etc etc.

 

[Sols]

There aren't a lot of jurisdictions where audits are mandatory for all companies. Cyprus, Malta, and Hong Kong (which has exceptions) come to mind, among jurisdictions typically in scope for these discussions.

Practically all relevant jurisdictions have audit requirements for companies of a certain size (usually one or a combination of turnover, profit, employee count), except the kind of jurisdictions that by each passing year becomes less and less feasible to run a business under.

 

[Dandyline]

Hi,

Curious which countries do not require auditing.

US LLC is one, until its not, but works for low volumes.

Singapore is, below 7M USD.

Any more?

UK LTD, below £10.2 million turnover, Cyprus LTD below €200,000 net turnover. Many countries has no audit requirements below certain thresholds.

 

[myhand]

Why do you want to avoid the audits? but yeah, UK, Cyprus and all the other mentioned jurisdictions don't require an audit.

 

[inector]

Why do you want to avoid the audits?

I assume this usually means bookkeeping has to be in place? With it, it's costly & hard tbh. Just filing tax returns is fine and can be done annually.

 

[myhand]

So a UK LTD would work perfectly fine for you, same with Cyprus company

 

[Don]

So a UK LTD would work perfectly fine for you, same with Cyprus company

Georgia - no audit if revenue is below 20M GEL (7M EUR).

 

[Alenka]

Hi,

Curious which countries do not require auditing.

US LLC is one, until its not, but works for low volumes.

Singapore is, below 7M USD.

Any more?

From which amount audit required for US LLC?

 

[JimBeam]

Cyprus:
"Companies may submit their financial statements for review instead of audit, by a statutory auditor or statutory audit firm, performed according to the International Standard on Review Engagements (ISRE) 2400, when the company’s net turnover does not exceed the amount of €200,000 and the total value of the assets (gross, not net, i.e. without deducting liabilities) does not exceed the amount of €500,000. It is anticipated that these initial thresholds, which had been the subject of most of the bill’s debating, are likely to be re-visited in the near future and re-considered in the light of early application experience with a view to revising them upwards, so that more companies are enabled to escape the full ISA audit requirement."

Source:
https://uhy.com.cy/changes-to-audit-requirements-in-cyprus/

 

[pfser]

Estonian companies are not required until meet certain conditions.

Mandatory if meets at least 2 conditions:

• annual net sales of 4 000 000 euros and more;
• balance sheet volume of 2 000 000 euros and more;
• average number of employees is at least 50.

or meets at least 1 condition:

• annual net sales of 12 000 000 euros and more;
• balance sheet volume more than 6 000 000 euros,
• average number of employees is at least 180.

 

[lacomaco]

Audited financial statements give you credibility with banks…

 

[Dandyline]

I assume this usually means bookkeeping has to be in place? With it, it's costly & hard tbh. Just filing tax returns is fine and can be done annually.

Bookkeeping has to be in place regardless of audit-requirements.

 

[aragon]

There aren't a lot of jurisdictions where audits are mandatory for all companies. Cyprus, Malta, and Hong Kong (which has exceptions) come to mind

Do you know how to avoid the annual audit of a Malta company? From what I can find online, the qualifications for an audit exemption are quite limited.

 

[Sols]

Do you know how to avoid the annual audit of a Malta company? From what I can find online, the qualifications for an audit exemption are quite limited.

Unless you qualify for the very narrow exemptions, I'm not aware of any way to avoid it. Every Malta company I've been involved in has been audited. It's so easy, costs are negligible thanks to healthy competition, and banks/payment processors like it.

 

[JimBeam]

Unless you qualify for the very narrow exemptions, I'm not aware of any way to avoid it. Every Malta company I've been involved in has been audited. It's so easy, costs are negligible thanks to healthy competition, and banks/payment processors like it.

How much does the audit on Malta costs for average small company compared to audit on Cyprus.

 

[Sols]

How much does the audit on Malta costs for average small company compared to audit on Cyprus.

From what I've seen, it's about the same in both. 1-2,000 EUR for a small company with a good auditor.

 

[lacomaco]

From what I've seen, it's about the same in both. 1-2,000 EUR for a small company with a good auditor.

Is that what you call as a negligible small amount?

 

[saintjohnny]

From which amount audit required for US LLC?

From none lol. I wonder why some people on the forum just love making up stuff to satisfy their need for paranoia. If you're a non resident alien and operate a single-member LLC all you have to do is file 5472 + 1120 each year – and that's it. Up to you what you do in your home jurisdiction.

 

[Dandyline]

Is that what you call as a negligible small amount?

Sounds pretty cheap. In tier 1 countries, price is usually 3-4000 EUR.