Who this is for
- Newly incorporated Hong Kong limited companies facing their first bookkeeping and audit cycle
- SMEs with no in-house accountant that want to outsource day-to-day bookkeeping
- Companies whose shareholders or directors live outside Hong Kong and need someone local to organise their documents and accounts
- Companies with one or two years of accounts that were never put in order
- Companies thinking about dormant status that want their accounts sorted out first
What's included
- Bookkeeping: recording transactions from bank statements, invoices and receipts, and preparing the general ledger and trial balance
- Management accounts: internal profit and loss statements and balance sheets when you need them (quarterly or annually)
- Financial statement preparation: a draft of the annual financial statements for the auditor
- Audit file preparation: bank reconciliations, receivable and payable schedules, fixed asset registers and the other schedules auditors usually ask for
- Referral to an independent auditor: if you need one, we refer you to an independent practising certified public accountant for the audit; you sign the audit engagement letter directly with the auditor
- Hand-off to tax filing: once the auditor's report is signed, we use the audited financial statements for your Profits Tax return (see our Profits Tax Filing service)
What's not included
- The audit itself: only an independent "practice unit" (a certified public accountant (practising) or a firm of certified public accountants, under section 393 of the Companies Ordinance) can sign an auditor's report. HKESC does not issue auditor's reports or audit opinions and is not a party to the audit engagement. You sign the engagement letter directly with the auditor, who quotes and charges its own fee.
- Tax planning, or representing you in tax disputes or investigations
- Internal audit, due diligence, or accounting work for listings or M&A
- Payroll and MPF processing (ask us about these separately)
- Legal advice
Government / statutory fees
Bookkeeping and the audit carry no government fees. The statutory fees below come with a company's annual compliance (checked October 2026):
| Item | Amount (HKD) | Official source |
|---|---|---|
| Annual Return NAR1 (private company, delivered within 42 days after the incorporation anniversary) | HK$105 | Companies Registry |
| Late NAR1 (after 42 days up to 3 months / 3–6 months / 6–9 months / over 9 months) | HK$870 / 1,740 / 2,610 / 3,480 | Companies Registry |
| Business Registration Certificate, 1-year (commencing 1 Apr 2026 – 31 Mar 2027, including HK$150 Protection of Wages on Insolvency Fund levy) | HK$2,350 | IRD fee table |
| Business Registration Certificate, 3-year (same period, including HK$450 levy) | HK$6,170 | IRD fee table |
Documents required
This is a general document checklist; confirm the applicable items and secure handover arrangements at consultation. Please do not send identity or accounting records through the website form; your consultant will arrange a secure handover.
- Certificate of Incorporation, Business Registration Certificate and the latest Annual Return
- Statements for every bank account (all currencies) for the financial year
- Sales invoices, purchase invoices and expense receipts
- Contracts, tenancy agreements and loan documents
- Payroll and MPF records (if you have employees)
- Documents for fixed assets bought or sold
- Last year's audited financial statements (if any)
Process and timeline
Case timing is confirmed during consultation and depends on documents, authorities and third parties. No completion or approval time is guaranteed; statutory deadlines require separate checking.
- Consultation: we look at your transaction volume, financial year-end and the services you need, then send a quote
- Engagement confirmed; you send us your documents
- Bookkeeping, trial balance and draft financial statements
- We refer you to an independent practising certified public accountant; you sign the audit engagement letter directly with the auditor
- The auditor carries out the audit; we provide the organised accounts and audit files the auditor asks for
- Once the auditor's report is signed, work moves to Profits Tax filing (if you have engaged us for it)
Timing: depends on how complete your information is; we confirm it at the consultation. The auditor decides how long the audit takes.
Annual obligations and statutory deadlines
- Keep accounting records: section 373 of the Companies Ordinance requires a company to keep accounting records that show and explain its transactions, and section 377 requires them to be kept for 7 years. Section 51C of the Inland Revenue Ordinance also requires anyone carrying on business in Hong Kong to keep sufficient records of income and expenditure for at least 7 years.
- Financial year: the directors set a new company's primary accounting reference date, which must fall within 18 months after incorporation. If they don't set one, it is the last day of the month in which the first anniversary of incorporation falls.
- Annual audit: every company's financial statements must be audited, including companies that qualify for the simplified reporting exemption. The only exception is a dormant company under section 5 of the Companies Ordinance (section 447).
- Annual general meeting: a private company that is not a subsidiary of a public company generally holds its AGM within 9 months after the end of its accounting reference period. Single-member companies, companies acting by written resolution, and companies whose members have all agreed to dispense with the AGM are exempt.
- Annual Return NAR1: deliver it to the Companies Registry within 42 days after the anniversary of incorporation each year.
- Profits Tax return: a corporation with gross income generally files audited financial statements with its return (see our Profits Tax Filing service).
FAQ
Does every Hong Kong company need an audit?
Yes. According to the Companies Registry, every company's financial statements must be audited, including small private companies that qualify for the reporting exemption. The only exception is a dormant company that has passed a special resolution under section 5 of the Companies Ordinance and delivered it to the Companies Registry.
Can HKESC audit my company?
No. Under section 393 of the Companies Ordinance, only a practice unit can be appointed as a company's auditor and sign the auditor's report. HKESC only does the bookkeeping, drafts the financial statements and prepares the audit files, and can refer you to an independent practising certified public accountant. You sign the audit engagement letter directly with the auditor.
My company had no business this year. Do I still need bookkeeping and an audit?
If the company still had bank movements, paid company secretarial fees or made any other transaction, it generally has accounting transactions and needs bookkeeping and an audit. If the company qualifies, dormant status may be an option, but the years before it became dormant may still need accounts. Talk to us first.
How long must accounting records be kept?
At least 7 years. Both section 51C of the Inland Revenue Ordinance and section 377 of the Companies Ordinance set a 7-year retention period.
How long does the first set of accounts take?
It depends on how long the first financial year is (up to 18 months after incorporation) and how many transactions there are. Timing depends on how complete your information is, and we confirm it at the consultation.
What if some documents are missing?
We record what we can from the bank statements first, then send you a list of the documents still needed. Whether the auditor accepts the records is the auditor's call under auditing standards.
Is the auditor's fee included in your quote?
No. You sign the audit engagement letter directly with the independent auditor, who also quotes and charges its own fee. HKESC may receive a fee for the referral; details will be stated in our quotation.
Can you work with bank accounts outside Hong Kong?
Yes, as long as you send statements for every account. Note that if the accounting records are kept outside Hong Kong, section 374 of the Companies Ordinance requires the related accounts and returns to be sent to and kept in Hong Kong.
What comes after the accounts and the audit?
The audited financial statements go with your Profits Tax return. A private company also needs to hold its AGM on time (or deal with it by written resolution) and deliver its Annual Return.
Is the referred auditor independent?
Yes. The auditor is appointed in its own name as a practice unit and must ensure its own independence under the HKICPA Code of Ethics for Professional Accountants. HKESC does not take part in or influence any audit judgement.