Books, audit and annual compliance duties

Bookkeeping

A company must keep accounting records sufficient to explain its transactions and disclose its financial position (Companies Ordinance s.373), for at least 7 years, kept in Hong Kong or producible on demand. Financial statements follow HKFRS or an applicable SME framework; management is responsible for them.

Simplified reporting and audit

Simplified reporting does not waive the audit requirement. The statutory exception for dormant companies must be assessed separately.

Who may audit

Bookkeeping, preparing accounts and independent audit are distinct tasks. Where an audit is required, engage a qualified auditor and confirm independence and the scope of the engagement.

Three separate questions

Link to the tax return

Prepare accounts, tax computations and supporting documents under the applicable IRD filing arrangements. Follow the actual due date and any granted extension. Tax attachment requirements do not determine the Companies Ordinance audit duty.

Consequences

Private-company annual returns are generally due within 42 days after the incorporation anniversary. Late delivery attracts higher registration fees and may also have legal consequences. Business-registration renewal and tax filing have separate deadlines.