How long can a Hong Kong company's first financial period be?
Up to 18 months from incorporation, because the first year-end date the directors choose must fall within 18 months of incorporation. If the first period is longer than 12 months, the deadline to lay or send the accounts is extended to the later of two dates set in the Ordinance.
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. Check separately how your first period interacts with tax filing, which is outside this accounting section.
Legal basis
- Companies Ordinance (Cap. 622), ss.369, 431
Sources
Applies to 2026 · Last reviewed 29 October 2026
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.
Related questions
- Does the Business Registration Ordinance require me to keep accounting records?Not directly. The Business Registration Ordinance deals with 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 (for companies) and section 51C of the Inland Revenue Ordinance (for all businesses).
- How do I choose the financial year end for a new Hong Kong company?Directors can specify the first (primary) accounting reference date, as long as it falls within 18 months after incorporation. If no date is specified, the default is the last day of the month in which the first anniversary of incorporation falls. Choose a date that suits your business cycle and workload.
- What is the deadline to approve and send financial statements to members in Hong Kong?For most private companies, the directors must lay the reporting documents at the annual general meeting, or send them to members, within 9 months after the end of the accounting reference period. Public companies have 6 months. The first period and shortened periods have special rules.
- What is a chart of accounts and how should a small Hong Kong business set one up?A chart of accounts is the numbered list of categories your ledger uses: assets, liabilities, equity, income and expenses. Keep it short, consistent and aligned to the statements you must produce. Separate accounts for director loans, MPF, tax and foreign-currency balances make year-end work easier.
- When must MPF contributions be paid, and what happens if they are late?Contributions are generally due by the 10th of the following month for the previous wage period, paid through the eMPF Platform. Late payment can bring a charge of the greater of HK$5,000 or 10% of the amount due, a 5% surcharge on default amounts, and criminal penalties of up to HK$450,000 and four years' jail in serious cases.