What Records Must a Hong Kong Company Keep? Section 373 Checklist

Section 373(3) of the Companies Ordinance says the records must in particular contain:

1. Daily entries of all sums of money received and expended, and the matters they relate to (a cash book or bank-based ledger usually does this); and
2. A record of assets and liabilities, such as receivables, payables, loans, fixed assets and stock.

On top of those, section 373(2) sets the quality test: the records must show and explain the transactions, disclose the financial position and performance with reasonable accuracy at any time, and allow directors to ensure the financial statements comply with the Ordinance.

In practice this means:

• a general ledger and sub-ledgers (sales, purchases, bank);
• supporting documents for each entry: invoices, receipts, contracts, bank statements, payroll records;
• fixed-asset and stock records where relevant; and
• records of amounts owed to and by directors and related parties.

Section 376 adds that the information must be recorded in a form that stays available for later reference.