Hong Kong is widely recognized as one of the most business-friendly locations in the world, offering a simple and efficient company registration process. Whether you are a local entrepreneur or an international investor looking to set up a business, understanding the business registration fee for an HK entity is crucial.
In this guide, we will cover the costs associated with business registration in Hong Kong, the registration process, and other essential details to ensure compliance with local regulations.
1. What is Business Registration in Hong Kong?
Business registration is a legal requirement for anyone operating a business in Hong Kong. The Business Registration Ordinance (Cap. 310) mandates that any entity conducting business in Hong Kong must apply for a Business Registration Certificate (BRC) from the Inland Revenue Department (IRD). This certificate serves as proof that a business is legally registered and authorized to operate.
Who Needs to Register?
- Sole proprietorships
- Partnerships
- Limited companies (both local and foreign entities operating in Hong Kong)
- Branch offices of overseas companies
- Any person or group engaging in trade, profession, or business
Failure to register a business on time can result in penalties and legal consequences.
2. Business Registration Fee for HK Entities
The 2024-2025 financial year, the Hong Kong government has implemented changes to the business registration fees and levies. ctive from April 1, 2024, the business registration fee has been increased by HKD 200, bringing the annual fee to HKD 2,200. Toigate the impact of this increase, the HKD 150 levy payable to the Protection of Wages on Insolvency Fund has been waived for two years, starting from the same date. (irgov.hk)
Below is a breakdown of the updated fees:
Certificate Type | Registration Fee (HKD) | Levy (HKD) | Total (HKD) |
1-Year Business Registration | 2,200 | 0 | 2,200 |
3-Year Business Registration | 5,720 | 150 | 5,870 |
1-Year Branch Registration | 80 | 0 | 80 |
**3-Year Branch Registration | 208 | 150 | 358 |
Note: The levy for the 3-year certificates res the total payable over the certificate’s duration.
For detailed information, please refer to the Business Registration Fee and Levy Table provided by the Inland Revenue Department.
These adjustments are part of the government’s ongoing efforts to balance fiscal respbilities while supporting the business community. Staying informed about such changes ensures compliance and aids in effective financial nning for your business operations in Hong Kong.
3. Business Registration Certificate (BRC)
Once your business is successfully registered, you will receive a Business Registration Certificate (BRC), which contains the following details:
- Business Name
- Nature of Business
- Business Address
- Expiry Date
- Business Registration Number
The BRC must be renewed annually or every three years, depending on your chosen certificate duration. It must also be prominently displayed at your place of business.
4. How to Register a Business in Hong Kong
Setting up a business in Hong Kong is a simple and efficient process. Follow these steps:
Step 1: Choose Your Business Structure
Decide whether you want to register as:
- Sole Proprietorship: A simple structure where the owner has full liability.
- Partnership: A business shared between two or more individuals.
- Limited Company: A separate legal entity with limited liability.
Step 2: Select a Business Name
Ensure your business name complies with Hong Kong’s regulations:
- The chosen business name must be unique and not duplicate any existing registered entity.
- It must not contain restricted or offensive words.
- You can check availability via the Companies Registry e-Search system.
Step 3: Prepare Necessary Documents
For a limited company, you need:
- Articles of Association
- Incorporation Form (NNC1 for new companies)
- Copy of directors’ and shareholders’ passports/IDs
- Business address proof
Step 4: Submit Application
- Apply online through the e-Registry or the Business Registration Office.
- Alternatively, submit the application in person at the Companies Registry.
Step 5: Pay the Registration Fee
Pay the required business registration fee and levy.
Step 6: Receive Your Business Registration Certificate
- Processing time: Usually within one working day if submitted online.
- Once approved, you will receive the Business Registration Certificate
5. Government Fee Waivers & Concessions
The Hong Kong government periodically offers fee waivers and concessions to encourage business activity. Some past measures included:
- 2023: Business registration fees were reduced for one year.
- 2022: Waivers for newly registered businesses.
- 2021: Reduction in fees due to COVID-19 relief measures.
Check the IRD website for the latest updates on fee reductions or waivers.
6. Common Mistakes to Avoid in Business Registration
When registering a business in Hong Kong, avoid these common errors:
- Failing to renew your BRC – Late renewal incurs penalties.
- Using an invalid or duplicate business name – Check name availability before submission.
- Not specifying the correct business type – Choose the structure that aligns with your operations.
- Providing incorrect details in the application – Ensure accuracy to prevent rejection.
- Operating without a BRC – This can result in fines and legal issues.
7. Benefits of Registering a Business in Hong Kong
Hong Kong offers numerous advantages for business owners:
- Low corporate tax rates (8.25%-16.5%)
- No VAT, capital gains tax, or withholding tax
- Business-friendly regulatory environment
- Access to global markets
- Efficient banking and financial services
Registering a business in Hong Kong not only enhances credibility but also opens doors to international trade and investment opportunities.
Conclusion
Understanding the business registration fee for an HK entity is essential for anyone planning to start a business in Hong Kong. With reasonable registration fees, a business-friendly environment, and a straightforward registration process, Hong Kong remains a top choice for entrepreneurs.
To stay compliant, ensure you renew your Business Registration Certificate on time, stay informed about government fee waivers, and avoid common registration mistakes. If you are ready to set up your business, you can consult with a professional agency.
For the latest updates on business registration fees and regulations, visit the Hong Kong Inland Revenue Department (IRD) website.
Do you need assistance with company registration in Hong Kong? Contact a professional business consultant today!
