The invention provides a process for producing a hydroxy compound including the following steps: (a) chlorination step: a step of producing a chlorinated hydrocarbon and hydrogen chloride from a hydrocarbon and chlorine; (b) hydrolysis step: a step of producing a hydroxy compound and hydrogen chloride from the chlorinated hydrocarbon and water; and (c) oxidation step: a step of producing chlorine by reaction of oxygen and hydrogen chloride obtained in the chlorination step and/or the hydrolysis step, and (d) recycling at least a portion of the chlorine to the chlorination step.