In this course · 5 of 6
Course 1
Know your record duties
6 lessons · 7 min
- 1Bookkeeping vs Accounting in Hong Kong: What Is the Difference?
- 2Is a Hong Kong company legally required to keep accounting records?
- 3What Records Must a Hong Kong Company Keep? Section 373 Checklist
- 4What Does Section 51C Require from a Hong Kong Business? (IRD Records)
- 5Does Business Registration Cover Bookkeeping in Hong Kong?
- 6Penalties for Not Keeping Accounting Records in Hong Kong
The short answer
No. Hong Kong's Business Registration Ordinance (Cap. 310) covers registering the business and notifying changes, such as a new business address or name, within one month. The duty to keep accounting records comes from the Companies Ordinance (Cap. 622) for companies and section 51C of the Inland Revenue Ordinance (Cap. 112) for all businesses.
A common mix-up: owners hear "business registration" and assume it covers books and records. It does not.
What the Business Registration Ordinance does cover, according to the IRD:
- holding a valid business registration certificate;
- notifying the Business Registration Office in writing within one month of changes to business particulars (for example business name, nature of business or address);
- for partnerships, notifying admission or retirement of partners within one month. The IRD states that failure to notify is an offence with a maximum fine of HK$5,000 and imprisonment of one year.
Where the bookkeeping duty actually sits:
- Companies: Companies Ordinance (Cap. 622), s.373 for keeping records and s.377 for the seven-year retention.
- All businesses: Inland Revenue Ordinance (Cap. 112), s.51C.
If your business is registered but has no transactions yet, you should still set up a simple record system from day one so the first transaction is captured properly.
Legal basis and sources
The law
- Business Registration Ordinance (Cap. 310)
- Inland Revenue Ordinance (Cap. 112), s.51C
- Companies Ordinance (Cap. 622), s.373
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.
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