HK$2000 OFF

when you

 when you register your company with Sleek

and subscribe to our accounting plans.

register your company with Sleek and subscribe to our accounting plans.


Financial Year End for Hong Kong Companies

4 minute read

When you establish your business, it is crucial to determine the Financial Year End (“FYE”). If you choose a suitable FYE for your company, you may benefit from:

  • Lower accounting fee;
  • Lower auditing fee; and
  • An extended period of tax reporting.

For a Hong Kong company, it is free to choose any date as its FYE. Sounds easy, right?  But you may wish to know more about what is Financial Year and from the accounting and tax perspective on how to determine the most suitable FYE for your company. Meanwhile, we also share with you information about the change of FYE. Let’s look into all of these together.


What is a Financial Year?

A financial year is a period of any 12 consecutive months that a company uses for accounting purposes and preparing financial statements. It is not necessarily the anniversary month of your company incorporated. Accounting records must be kept in relation to a company’s financial year.

Where a company has any subsidiaries, the board of directors (“Board”) should ensure that the financial year of each of its subsidiary coincides with the company’s financial year, unless there are good reasons for that.

The First FYE

When a Hong Kong company is incorporated, its first financial year commenced on the date of incorporation and ends on a date determined by the Board. The Board should specify a date as the FYE of the company before the first anniversary of incorporation of the Company. Where the Board fails to do so, the last day of the month of the company’s first anniversary of incorporation would be treated as the first FYE of the company. In addition, the first FYE must fall within 18 months. In other words, the first financial period of the company should not be more than 18 months.

Here are two examples for illustration:

Incorporation date: 1 May 2018
FYE: 31 December
First FYE: 1 May 2018 – 31 December 2018
(The first financial period cannot exceed 18 months so the first FYE cannot be until 31 Dec 2019.)
Incorporation date: 1 October 2018
FYE: 31 December
First FYE: 1 October 2018 – 31 December 2019

From the Accounting perspective – 

When you have a group of companies, you should ensure all your companies adopt the same financial year-end unless you have a good reason for not doing so. This is not only because it is requested under the Companies Ordinance but also for the sake of ease in accounts preparation. Other than preparing accounts for each company, the holding company also has to prepare consolidated accounts.

If the group companies have different FYE, the companies have to prepare two sets of accounts, one for its own FYE and one for the FYE of the holding company for consolidation purpose. The fee that you need to pay to the accountants and auditors would be much more than just one set of accounts. Hence, you save both time and cost to have the same FYE for the group companies.

From the Taxation perspective – 

The Inland Revenue Department (“IRD”) will issue the first Profits Tax Return (“PTR”) to the company in 18 months of its incorporation.  If a company has already commenced business and is not a dormant company, the PTR has to be completed with the audited financial statements and related tax computation as supporting for submission to IRD.  The company has three months’ time to file its first PTR. For subsequent PTR, the IRD will issue it to the company in early April each year.

The filing deadline would depend on whether the company has appointed a tax representative and/or its FYE. If the company has not appointed a tax representative, it will have no extension of submission regardless of its FYE and has to file its PTR within one month from the issue date.

Normally, your auditors will also act as the tax representative of your company in Hong Kong. They will help your company to apply for extension of submission in due course. Below are the extended filing dates in respect of difference FYE:

FYE PTR Extended Due Date
From 1 April to 30 November (Accounting Date Code “N”) No extension (Normally end of April)
From 1 December to 31 December (Accounting Date Code “D”) Extension to 30 September
From 1 January to 31 March (Accounting Date Code “M”) Extension to 30 November

After you have filed your PTR, IRD will issue the Profits Tax Assessment and the Demand Note to the Company for settlement of profits tax a few months later.

Therefore, you may take the above into consideration and see whether the FYE which has the reporting deadline falls into the peak season of your industry and whether you would have any cash flow issue in the months that you need to pay the tax.

We built a calculator to estimate your Audit fee. Try it now!

The Common FYE in Hong Kong

In Hong Kong, the most common FYE are 31 December and 31 March. The former is the calendar year-end and the latter is the financial year-end of Hong Kong government. That is why IRD would offer extension for companies with these two FYE.

Change of FYE

If your company is a standalone company, it is rather free to choose FYE. However, if your company becomes a member company of a group (or for any other reasons), the company may wish to change its FYE. It is allowable but there are some limitations:

  • The first financial year or period after the change of FYE must not be prolonged to more than 18 months;
  • A company must not change its FYE if the period within which the company is required to present its audited financial statements and/or related documents in a general meeting for the such FYE is expired;
  • Shareholders’ approval is needed if it is not the first time for the company to change and extend its FYE unless it is for the purpose of aligning with its holding company’s FYE; and
  • A public company or a company limited by guarantee must report such change within 15 days with the Companies Registry by a prescribed form.

Wrap Up

If all of this sounds complex and overwhelming, fret not.

Sleek is able to help with your company’s accounting and finances matters including business management. With our team of experts, we are confident to make the process as easy, seamless and convenient as possible so that you can reap the benefits you deserve!

Talk to us today if you need any further assistance in determining your FYE.

Ready to grow your business?
Our expert team is here to help you. Explore our accounting services or contact our team to get personalised advice today.

Start a business in less than 3 hours with us. Talk to our experts today.

Subscribe to our newsletter

Our jam-packed newsletter covers monthly compliance updates, upcoming events and exclusive offers

Other articles that might interest you

Related content

Contact us

We’d love to help. Share your contact details and we’ll call you back

We are here to help you!

In the beginning, the whole matter may seem complex to you. If that is the case, we are here to help. Take a look at our incorporation services or contact our team to find out more information

Start a business in less than 3 hours with us. Talk to our experts today.

WhatsApp Us

Get HK$2000 off on
your first Sleek
service purchase!

Offer valid when you register your company with Sleek and subscribe to our accounting OR audit and tax plans. T&Cs apply. Privacy policy.

Terms and Conditions of the Promotion:

Before participating in this promotion, you must carefully read and agree to abide by the following terms and conditions.

  1. Eligible Users: To enjoy this offer, customers must purchase Incorporation package with registered address and audit and tax/accounting services at the same time. Valid customers will receive a fee waiver of HKD 2,000.
  2. Promotion Period: This promotion is valid from Jun 19-Jul 2, 2023. Sleek reserves the right to end this promotion at any time without prior notice to customers.
  3. Fees and Payment: Customers must pay the service fees according to Sleek’s standard payment terms. The HKD 2,000 waiver will be applied as a discount on the customer’s invoice.
  4. Governing Law and Jurisdiction: These terms and conditions shall be governed and construed in accordance with the laws of Hong Kong. Any dispute arising out of or in connection with these terms and conditions shall be subject to the exclusive jurisdiction of the courts of Hong Kong.
  5. Confidentiality: Sleek shall treat all information provided by the customer as confidential and shall not disclose such information to any third party, except as required by law or with the customer’s consent.
  6. Limitation of Liability: To the extent permitted by law, Sleek shall not be liable for any direct, indirect, or consequential loss or damage arising out of this promotion.
  7. Disclaimer: To the extent permitted by law, Sleek shall not be responsible for any loss or damage arising from the customer’s use of this promotion. Sleek does not guarantee the accuracy, completeness, reliability, timeliness, suitability, or availability of the website and its content. Sleek reserves the right to change the website and its content at any time without prior notice to customers.
  8. Cancellation of Orders: If customers wish to cancel an order, they must contact Sleek’s customer service department within 24 hours of submitting the order. Orders cannot be cancelled if they have already been processed
  9. Links to Third-Party Websites: Sleek’s website may contain links to third-party websites that are not under Sleek’s control. Sleek is not responsible for the content, privacy policies, or practices of third-party websites and does not endorse or recommend them. Customers should carefully read the terms and conditions and privacy policies of any third-party website before using it.
  10. Accuracy of Registration Information: Customers warrant that all registration information provided is accurate, complete, and up-to-date. If a customer’s registration information changes, the customer should update their account information promptly. Sleek shall not be liable for any loss or damage arising from the customer’s provision of inaccurate or incomplete registration information.
whatsapp icon

Chat with us on WhatsApp from your mobile

30 day moneyback guarantee

30 Days Money Back Guarantee

Our refund policy:

We care about you – within 30 days from your purchase, if you’re unhappy with our services, we’ll refund our fee. Email or call us, and we’ll process the refund within five working days.

What it doesn’t cover:

We will not be able to refund Government fees once the application has been submitted, nor any third-party processing fees.

When it applies:

We cannot guarantee any specific legal outcomes when you use our services. For instance, a company registration might be filed correctly but still get rejected by the Company Registry for reasons beyond our control. We can only refund our fees for issues we are directly responsible for. In the case that you purchase a service and later change your mind, we can’t issue a refund.

Our customer support team is at your disposal for any questions or issue you may face.

Need help?

Our sales team is available from Mon - Fri 9am to 7pm (Hong Kong Time)

Let's get in touch

Book a time with our experts to guide you in finding the best solution.