Financial Year of a Hong Kong Company

Every Hong Kong company must follow the requirements for preparation of financial statements. One of the first step is that the company must specify its financial year.

Financial Year

The first financial year of the company commences on the first day of its first accounting reference period and ends on the last day of the accounting reference period. The following financial year will be commenced on the date following the last day of the previous financial year.

The Directors must define the accounting reference period anytime before the first anniversary of the establishment of the company. The accounting reference period must fall within 18 months from the date of incorporation of the company.
The accounting reference date of a Hong Kong company shall be specified in relation to:

• The previous accounting preference period of the company and subsequent accounting reference period subject to either the period for laying the reporting documents for the financial year at AGM has expired or the period for sending out the reporting documents for the financial year has expired.

Companies limited by guarantee and public companies are required the new accounting period to the Companies Registry within 15 days.
A new accounting reference date cannot be specified:

• for a date which would extend the accounting reference period longer than 18 months,
• within 5 years from the last change.

Sample form NAC4

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