Any business owner who wishes to do business in Hong Kong is required by law to register their incorporation with the Inland Revenue Department (IRD) Hong Kong. This business registration allows businesses to operate with the legal rights, benefits, and obligations that come with operating in Hong Kong. To ensure that your business remains legal, it is important to keep your business registration up to date and paid consistently.
In this article, we will take a closer look at Business Registration in Hong Kong, an overview of what the BR Fee entails, who needs to pay it, and how to navigate the payment process effectively. Let’s dive into the essential aspects of Business Registration Fees in Hong Kong.
Content Outline
What is the Business Registration Fee in Hong Kong?
For Hong Kong businesses to receive their Business Registration Certificate, the company must make a payment (HK BR Fee) to the business registration office. In Hong Kong, the BR Fee is an annual payment required for all businesses. It ensures that your business is recognized by the government and complies with local regulations. Upon payment, you will get a Business Registration Certificate which will legitimize your business and show you are compliant with Hong Kong law.
Key Takeaway
- BR Fee is a mandatory annual payment for all businesses in Hong Kong.
- To legalize your business and ensure compliance.
- The fee varies depending on business type and registration period.
- Timely payment is crucial to avoid penalties.
Who Needs to Pay the Business Registration Fee Hong Kong?
All businesses in Hong Kong must pay the BR Fee regardless of their business structure. This includes:
- Sole proprietorships
- Partnerships
- Limited companies Even businesses that don’t make a profit are still required to pay the fee within one month of commencing operations. However, charitable organizations and some other entities may be exempted.
Knowing what types of businesses and companies are required to register can help you better navigate the process of registration. In Hong Kong, here are the types of companies and businesses that are required to register according to the IRD:
- Any form of business that operates in trade and commerce
- Any form of business that operates in craftsmanship or profession for the purpose of profit
- Any club that offers facilities and services to members for the purpose of social recreation
- Any company that is incorporated under the Companies Ordinance
- Any foreign company that has established a business location in Hong Kong
To know if your company or organization qualifies under the law for business registration, speak with a team of experts. FastLane’s team of experienced legal and financial experts will help you look at whether or not your company identifies as needing business registration, and how to properly register.
How Much is the Business Registration or BR Fee in Hong Kong?
The amount payable for the BR Fee depends on the type of registration chosen:
- One-year Business Registration: HK$2,200
- Three-year Business Registration: HK$5,870
There are other business registration fees for those looking to open a “branch location” of the same company that is already registered. Business registration for branch sites operates similarly, with one and three-year registrations:
- One-year Branch Registration: From HK$80
- Three-year Branch Registration: From HK$358
Understanding the Business Registration Certificate and Levy Table
Upon registration, you will get a Business Registration Certificate. This document is crucial to legitimize your business in Hong Kong.
What Information is Included on the Business Registration Certificate?
The certificate will have the following details:
- Business Registration Number (BRN)
- Business name
- Business address
- Nature of the business
- Commencement date of the business
- Expiry date of the certificate
How to Calculate the Business Registration Fee Using the Levy Table
The levy table is found on the Business Registration Certificate and outlines the fees associated with maintaining your business registration. As of April 1, 2024, the BR Fee is HK$2,200 for one-year registration and the levy used to support the Protection of Wages on Insolvency Fund is temporarily waived until April 2026.
While the levy is currently waived in Hong Kong, the levy table can still be used to calculate prorated fees if your business starts before April 1, 2024. Here’s how to use the levy table (remember the levy is currently waived):
- Get Levy Table: Download the Business Registration Fee and Levy Table from the Companies Registry website.
- Find Your Commencement Date: This is the date your business started.
- Find the Row and Column: The table will have rows for the commencement date range (e.g. Jan-Mar 2023, Apr-Jun 2023) and columns for the type of certificate (one-year, three-year).
- Find the Fee: The base registration certificates’ fee (excluding the currently waived levy) is at the intersection of your commencement date range and chosen certificate type.
How To Waive Your Business Registration Fee?
There are exemptions available for companies who wish to avoid paying the business registration fee. If your company operates as a charitable organization or makes less than $10,000 a year in sales from your primary source of income, you may be eligible for exemption from the business registration fee. Temporary levy waivers such as HK$150 insolvency levy are available for businesses registered from April 1, 2024 to March 31, 2026. To learn if you may qualify for the exemption, speak with a trained and experienced business registration expert.
How To Pay Your Business Registration Fee?
To register your business, you must submit your documentation and fee to the Hong Kong Companies Registry upon application of incorporation.
You can pay your registration fee by paper mail or via electronic payment. The IRD recommends that you pay online to avoid hassle and risk. Once you pay your fee and your registration is complete, you will receive a confirmation and your Business Registration Certificate – recognizing your company as a legal entity under Hong Kong law.
Is There a Concessionary Refund for the Business Registration Fee?
Currently, there is no active concessionary refund scheme for the BR Fee. The last concessionary refund was offered by IRD for businesses that paid the fee between April 1, 2022 and March 31, 2023 to provide relief during the pandemic.
How Often Must the Business Registration Fee Be Paid?
The BR Fee must be paid annually or every three years depending on the type of registration chosen. Timely renewal is important to avoid penalty or invalidation of your business registration.
Conclusion
Staying compliant with business registration in Hong Kong is crucial for your business to be in good standing. Paying the BR Fee on time ensures your company complies with local rules and avoids penalties or disruption to your operations.
How Can FastLane Group Help?
FastLane Group provides expert support for businesses in Hong Kong and guides you through from company incorporation to the registration process, managing compliance with IRD and ensuring timely payment of the BR Fee. Our team can help you navigate any exemptions or waivers applicable to your business and keep your registration up to date.
Frequently Answered Questions
The BR Fee is an annual payment required by all businesses in Hong Kong to maintain their legal registration with the government.
The fee is HK$2,200 for one-year registration or HK$5,870 for three-year registration. Different rates apply to branch registrations.
The BR Fee is due upon initial registration and must be renewed annually or every three years depending on the certificate chosen.
Failure to pay the BR Fee on time can result to penalty, fines and possible prosecution.
Yes, the BR Fee can be claimed as business expense in your tax filings.
