For newly incorporated Hong Kong companies, the first 18 months establish critical accounting and compliance foundations. Accounting Plus Corporate Advisory Limited specializes in guiding new companies through these essential initial requirements to ensure full statutory compliance from the start.
Key First-Year Accounting and Audit Requirements
The Hong Kong Companies Ordinance (Cap. 622) establishes specific timelines and requirements for new companies:
- First Financial Year: Begins on incorporation date and extends for a period determined by directors (not exceeding 18 months)
- Accounting Records: Must be established immediately and maintained properly from day one
- First Annual Return: Due within 42 days after the anniversary of incorporation
- First Audit: Required for the company’s first set of financial statements (unless exemption criteria are met)
“The first 18 months set the compliance tone for your company’s entire lifecycle,” explains our new business specialist. “Starting right makes all future requirements easier to meet.”
Establishing Proper Accounting Systems
New companies must implement appropriate accounting systems immediately. This includes:
- Setting up proper bookkeeping procedures
- Establishing financial controls
- Creating document retention systems
- Implementing audit-friendly record-keeping
Our tailored onboarding service helps new companies create systems that scale with growth while meeting compliance requirements from day one.
First Audit Preparation: What to Expect
For most Hong Kong companies, the first audit will cover the initial accounting period. Preparing for this crucial first audit involves:
- Organizing incorporation documents
- Maintaining meticulous transaction records
- Properly documenting director decisions
- Preparing first-year financial statements in compliance with HKFRS or SME-FRF
“Your first audit establishes baseline financial reporting standards,” notes our audit preparation specialist. “Professional guidance during this initial period prevents common compliance pitfalls.”
Director Responsibilities in the Initial Period
Company directors have specific responsibilities during the first 18 months:
- Determine the length of the first financial year (not exceeding 18 months)
- Ensure proper accounting records from incorporation
- Approve the first financial statements
- Hold the first Annual General Meeting (if required)
- File necessary documents with the Companies Registry on time
How Accounting Plus Supports New Companies
Our specialized service for new Hong Kong companies includes:
- Initial accounting system setup
- Regular bookkeeping and financial reporting
- First-year financial statement preparation
- Audit coordination and support
- Compliance timeline management
“Starting a company is challenging enough without worrying about compliance details,” says our new business director. “We handle the accounting and compliance requirements so founders can focus on building their business.”
With Accounting Plus as your accounting partner from incorporation, you can approach statutory compliance with confidence. Our expertise ensures your new Hong Kong limited company establishes proper financial foundations for long-term success.
For more information about our new company accounting services or to schedule a consultation, contact our team today.
