Navigating the Latest Updates in Hong Kong Company Law: What Businesses Need to Know in 2026
- Kristina Coluccia
- 3 days ago
- 3 min read
As we step into 2026, businesses operating in or through the Hong Kong SAR need to sharpen their focus on several recent legislative and regulatory shifts. These developments signal an evolving environment: more inward-facing corporate flexibility, stricter governance expectations, tighter oversight of insolvency and restructuring, and new employment law thresholds that affect every organisation.
1. Inward re-domiciliation regime opens new doors
The Companies (Amendment) (No. 2) Ordinance 2025, effective 23 May 2025, introduces Hong Kong’s inward re-domiciliation regime.
Why it matters:
Non-Hong Kong incorporated companies can now transfer their place of incorporation into Hong Kong without winding up in their original jurisdiction.
Once re-domiciled, the entity becomes a Hong Kong company under the Companies Ordinance (Cap. 622).
This creates new opportunities for regional or international groups to centralise their structure in Hong Kong for strategic, regulatory, or tax reasons.
Action points:
Review offshore entities for potential re-domiciliation.
Assess corporate governance readiness and statutory filing obligations.
Prepare boards and investors for operational changes arising from a shift in jurisdiction.
2. Higher corporate governance standards for listed companies
From 1 July 2025, amendments to the HKEX Corporate Governance Code and Listing Rules introduced stronger disclosure and training requirements.
Key updates:
Boards must publish a skills matrix and conduct annual effectiveness reviews.
Independent non-executive directors face tenure and multiple-directorship limits.
New directors must complete at least 24 hours of training within their first year.
These apply to financial years beginning on or after 1 July 2025, so most listed companies will feel the effects from FY2026 onwards.
Implications:
Listed entities should map board competencies and plan training programmes now.
Non-listed companies may choose to follow the principles voluntarily to strengthen investor and stakeholder confidence.
Governance reporting will attract greater scrutiny from regulators, auditors, and institutional shareholders.
3. Developments in insolvency and restructuring law
Recent case law and reforms in 2025–26 continue to shape Hong Kong’s insolvency landscape.
Courts are recognising more foreign insolvency proceedings.
Corporate rescue frameworks are gaining structure, aligning more closely with international standards.
Arbitration and winding-up interactions are being tested and refined.
Next steps:
Review your group’s cross-border debt and contract terms for jurisdictional risk.
Establish internal triggers for early restructuring or rescue planning.
Keep board members informed about the new obligations and recognition mechanics.
4. Employment law changes from January 2026
The Employment (Amendment) Ordinance 2025 takes effect on 18 January 2026, redefining who qualifies for continuous employment.
Key change:
Employees qualify if they work either:
at least 17 hours per week for 4 consecutive weeks (“417 rule”), or
at least 68 hours across 4 weeks (“468 rule”).
Impact:
Wider eligibility for statutory benefits such as sick leave, holidays, and severance.
Employers engaging part-time or casual workers must review contracts and payroll processes.
Non-compliance could trigger back-dated liabilities and disputes.
5. Practical checklist for 2026
How Woodburn Can Help
At Woodburn Accountants & Advisors, we work with foreign-invested and Hong Kong-based companies to ensure compliance transitions smoothly into strategic advantage.
Here’s how we can support your business in 2026:
Corporate governance updates
Our compliance specialists review board structures, training obligations, and reporting frameworks to align with the 2025 HKEX governance reforms, whether you’re listed or privately held.
Cross-border restructuring support
We advise on group structure planning, director responsibilities, and insolvency risk exposure, working alongside your legal counsel to protect assets and reputation.
HR and payroll compliance
Our team updates contracts and systems to reflect the 2026 employment law changes, helping you maintain compliance and minimise employee disputes.
Continuous compliance monitoring
Through our corporate secretarial and accounting services, we track deadlines, filings, and policy developments—so you can focus on growth, not paperwork.
If your company operates in Hong Kong or plans to relocate there, now is the time to review your structure, governance, and workforce policies.
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.
