How Long Must a Hong Kong Company Keep Accounting Records? (7 Years)

Company law (s.377). The company must preserve its accounting records for 7 years after the end of the financial year to which the last entry in them relates. Directors who fail to take all reasonable steps to comply face a fine of HK$300,000, and a fine plus up to 12 months' imprisonment if the failure is wilful. It is a defence to show that you reasonably believed a competent and reliable person was responsible and able to do the job.

Tax law (s.51C). The IRD says business records must be kept for at least 7 years after the completion of the transactions to which they relate.

The two clocks start at different points, so the safe approach is to keep each record until the later of the two dates has passed. Example: for an invoice in a financial year ending 31 March 2027, the company-law period runs to 31 March 2034. A simple rule many businesses adopt is: keep everything for seven full years after the end of the financial year in which the document was used.

Records for assets or contracts that still run (for example a lease or a loan) are worth keeping beyond seven years, because you may still need them to prove your position.