What must a Hong Kong company's accounting records contain?
The law names two things: daily entries of all money received and spent, with what each was for, and a record of the company's assets and liabilities. Beyond that, the records must be sufficient to explain transactions and show the financial position accurately at any time.
Section 373(3) of the Companies Ordinance says the records must in particular contain:
- 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
- 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.
Legal basis
- Companies Ordinance (Cap. 622), s.373
- Companies Ordinance (Cap. 622), s.376
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
- What is the difference between bookkeeping and accounting in Hong Kong?Bookkeeping is the day-to-day recording of transactions: sales, purchases, payments and receipts. Accounting uses those records to prepare financial statements, interpret results and support tax and audit work. In Hong Kong the law cares about both: the company must keep adequate records, and its directors must prepare financial statements from them.
- Is a Hong Kong company legally required to keep accounting records?Yes. Section 373 of the Companies Ordinance (Cap. 622) requires every company to keep accounting records that explain its transactions and show its financial position and performance at any time. Directors who fail to take all reasonable steps risk a fine of HK$300,000, and up to 12 months' jail if the failure is wilful.
- How long must a Hong Kong company keep its accounting records?Seven years. Under section 377 of the Companies Ordinance, a company must keep its accounting records for 7 years after the end of the financial year to which the last entry relates. The Inland Revenue Department separately requires business records to be kept at least 7 years after the transactions they relate to.
- What does section 51C of the Inland Revenue Ordinance require from my business?Anyone carrying on a trade, profession or business in Hong Kong must keep enough records, in English or Chinese, to work out assessable profits, and keep them for at least 7 years. Failing to do so without reasonable excuse can lead to a fine of up to HK$100,000.
- 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).