Business Record Keeping in Hong Kong: Legal Requirements and Best Practices

Maintaining accurate and complete business records is not only a regulatory requirement in Hong Kong — it is a cornerstone of effective business management. Whether you operate a small enterprise or a multinational group, understanding your obligations around record keeping helps ensure compliance, transparency, and operational efficiency.

Why Record Keeping Matters

Hong Kong’s business environment is built on credibility and transparency. The Companies Ordinance (Cap. 622) and the Inland Revenue Ordinance (Cap. 112) both require companies to maintain proper accounting and corporate records. These records provide an accurate view of the company’s financial position, support tax filings, and form the foundation for audits, due diligence, and investor confidence.

Failing to maintain proper records can result in penalties, tax disputes, or even legal challenges, which can be particularly damaging in a jurisdiction that values corporate governance as highly as Hong Kong.

Key Record Keeping Requirements

1. Company Records

Every Hong Kong-registered company must keep statutory records that include:

• Incorporation documents and amendments

• Registers of directors, company secretaries, and shareholders

• Records of share transfers and allotments

• Minutes of board and shareholder meetings

• The company’s latest annual return and business registration certificate

These documents must be maintained at the company’s registered office or another approved location within Hong Kong.

2. Accounting Records

Under the Companies Ordinance, companies must prepare and maintain accounting records that:

• Explain the company’s transactions and financial position

• Enable the preparation of accurate financial statements

• Allow for audit verification

Records should include invoices, receipts, bank statements, payroll records, and contracts.

3. Retention Periods

According to the Inland Revenue Ordinance, accounting and business records must be retained for at least seven years from the transaction date. For companies that cease operations, records should still be kept for seven years following cessation to satisfy any post-closure compliance requirements.

4. Language and Format

Records may be maintained in English or Chinese. While electronic record keeping is widely accepted, businesses should ensure that digital files are securely stored and easily retrievable upon request by authorities or auditors.

Best Practices for Effective Record Keeping

• Centralise documentation – Maintain a clear filing system for both physical and digital records.

• Regular reconciliation – Review and reconcile financial data monthly or quarterly.

• Access control – Restrict sensitive data to authorised personnel only.

• Backups and data security – Implement secure cloud storage or encrypted backups to protect records against loss or tampering.

• Periodic review – Schedule compliance reviews to ensure ongoing alignment with regulatory requirements.

The Role of Technology

As Hong Kong moves toward digital transformation, many businesses are adopting cloud-based accounting and document management systems to streamline compliance. These tools not only improve accuracy but also make it easier to collaborate with accountants, auditors, and regulators.

How Woodburn Can Help

At Woodburn Accountants & Advisors, we understand that accurate record keeping is the backbone of compliance and long-term business success. Our team supports clients in establishing robust accounting systems, maintaining statutory registers, and ensuring full compliance with Hong Kong’s Companies Ordinance and Inland Revenue Ordinance.

Whether you’re incorporating a new entity, restructuring your operations, or reviewing your internal processes, Woodburn provides end-to-end corporate, accounting, and compliance services to help you operate with confidence and clarity in Hong Kong.

---

Woodburn Accountants & Advisors is one of China and Hong Kong’s most trusted business setup advisory firms.

Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.

Contact us