Bookkeeping and Accounting in Hong Kong
- Roman Verzin
- a few seconds ago
- 3 min read
Managing a Hong Kong company can feel complex at first.
Many foreign founders are surprised by the sequence of renewals, filings, and audits required each year.
Understanding the full cycle of Hong Kong accounting and audit obligations is critical to staying compliant and avoiding last-minute stress.
This guide will explains bookkeeping and accounting in Hong Kong through breaking down each step, the roles of service providers, and practical tips for smooth annual compliance.
Annual Compliance Cycle for Hong Kong Companies
Your Hong Kong company follows a predictable annual routine. Once you understand it, you can plan ahead and prevent surprises.
So, let's illustrate all steps in the annual compliance cycle:
Business Registration Renewal (BR)
The BR acts as your company’s official ID.
Renew around the incorporation anniversary (takes ~1 week).
Service providers typically handle the payment and collect the new certificate.
Annual Return Filing (NAR1)
Confirms directors, shareholders, company secretary, and registered address.
Secretary needs a confirmation that no ownership changes occurred.
Deadline: 42 days after incorporation anniversary.
Often filed alongside BR renewal.
Banks may request the latest BR and NAR1 for verification.
Bookkeeping and Accounting
Collect bank statements, invoices, and contracts.
Accountants prepare financial statements; allow time for questions or adjustments.
Submission timing aligns with Profits Tax Return (PTR) requirements.
Annual Audit
Mandatory for all active companies (except dormant ones).
CPA reviews financial statements and issues audited statements.
Audited statements often submitted alongside PTR.
Profits Tax Return (PTR)
First PTR: 18 months post-incorporation; thereafter annually.
Typically filed 3–5 months after financial year-end, with CPA assistance.
Extensions up to 3 months are common.
Paying Profits Tax
Tax Office issues Notice of Assessment (NOA).
Pay within 1–2 months, or receive a “nil” notice for losses or offshore status.
Property Tax Return (if applicable)
Required if your company owns local real estate.
Submitted alongside PTR.
Employer Filings and Staff Obligations (if applicable)
Forms IR56B, IR56A, IR56E/F/G.
MPF contributions monthly; annual summary submitted with Employer’s Return.
Skip entirely if team is fully remote outside Hong Kong.
Annual License Renewals (if applicable)
Applies to regulated businesses; renew 1–2 months in advance.
Most consulting or trading firms do not require this step.
Dividends
Distribute profits once financial year closes and accountant confirms real profit.
Banks may require audited statements for large distributions.
-------------------------------------------------------------------------------------------------------------------------------
Core Service Providers: Company Secretary & Registered Address
Mandatory service providers ensure compliance and reduce risk.
Company Secretary
Maintains statutory books, prepares board resolutions, files changes with Companies Registry.
Acts as official correspondence contact.
Without a licensed secretary, the company is non-compliant.
Registered Address
Official government mailing address and statutory book location.
Often provided as a virtual office.
Essential for legal and audit correspondence.
-------------------------------------------------------------------------------------------------------------------------------
Bookkeeping, Audit, and Filing in Hong Kong
Accurate bookkeeping is the foundation for audits, PTR, and global compliance, so you need to:
Maintain clear records of all invoices, contracts, and bank statements.
Accountants prepare financial statements, reviewed by a CPA.
Audit confirms the integrity of financial statements.
PTR files follow the audit to ensure timely tax compliance.
Timing Recommendations:
Start bookkeeping immediately after year-end.
Allow 4–6 weeks for accountant review and audit preparation.
Schedule PTR submission with potential extensions in mind.
-------------------------------------------------------------------------------------------------------------------------------
Optional Services: Beyond Compliance
Additional services help your Hong Kong company operate globally with minimal in-house support.
Examples:
Document Handling:
Mail forwarding, Certificates of Good Standing, legalization/apostille.
Banking Support:
Offshore claims, KYC/EDD assistance, account management guidance.
Strategic Advisory:
Global structure advice, practical trade insights, expansion planning.
Why it matters:
Founders with sensitive passports or complex setups benefit from providers who combine compliance knowledge with real business experience.
-------------------------------------------------------------------------------------------------------------------------------
Choosing the Right Service Provider
Experience matters as much as compliance knowledge.
So when you choose your service provider, consider the following criteria:
Teams experienced with high-risk or sensitive founders.
Providers who actively run businesses, not just law or accounting firms.
Ability to handle practical banking, tax, and document challenges.
Outcome:
Avoid costly mistakes, delays, and rejections while building a trusted global presence.
-------------------------------------------------------------------------------------------------------------------------------
Key Takeaways
Annual cycle:
BR renewal → Annual Return → Bookkeeping → Audit → PTR → Profits Tax → Optional filings.
Mandatory services: Company secretary and registered address are essential.
Bookkeeping & audit: Core for compliance and timely PTR.
Optional services: Banking, document handling, and advisory streamline operations.
Provider selection: Provider with practical experience plus compliance expertise is critical.
Next Step:
Audit your compliance workflow and confirm your service provider covers both mandatory and optional services.