In this course · 3 of 7
Course 3
Pick your year end
7 lessons · 7 min
- 1What Is a Financial Year End in Hong Kong? (Accounting Reference Date)
- 2How do I choose the financial year end for a new Hong Kong company?
- 3How long can a Hong Kong company's first financial period be?
- 4Can I change my Hong Kong company's financial year end, and how?
- 5HKFRS, HKFRS for Private Entities or SME-FRF: Which in Hong Kong?
- 6What Is SME-FRF and Who Can Use It in Hong Kong?
- 7Who can use HKFRS for Private Entities in Hong Kong?
The short answer
A Hong Kong company's first financial period can be up to 18 months. If it is longer than 12 months, the deadline for the accounts is the later of 9 months after the first anniversary of incorporation and 3 months after the period ends (private company, Companies Ordinance (Cap. 622) s.431).
The primary accounting reference date, which closes the first period, must fall within 18 months after the date of incorporation (s.369(6)). The first financial period therefore runs from incorporation up to a maximum of 18 months. If directors specify nothing, the first period ends on the last day of the month of the first anniversary of incorporation.
Deadline for the first set of accounts. For a private company whose first period is longer than 12 months, section 431 gives whichever of these ends later:
- 9 months after the first anniversary of incorporation; or
- 3 months after the end of the first accounting reference period.
For a period of 12 months or less, the ordinary deadline applies: 9 months after the year end for most private companies.
Longer first periods spread set-up costs over one audit, but they also mean a larger first set of accounts and a longer wait before you have audited figures. Tax filing dates are separate, so ask your tax adviser how your first period fits them.
Legal basis and sources
The law
- Companies Ordinance (Cap. 622), ss.369, 431
Official sources
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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