A business registration certificate is a crucial document that legitimizes a business’s operation in Hong Kong. It represents your company’s compliance on local regulations, thus showcasing credibility and trustworthiness. This guide outlines the essential steps and considerations for obtaining a business registration certificate.
Content Outline
What is a Business Registration Certificate Exactly?
The BRC (Business Registration Certificate) is a fundamental permit required for the registration of any business in Hong Kong. It is obtained from the Inland Revenue Department’s Business Registration Office.
In addition, it’s the legal document that is linked to your company’s Tax Identification Number (TIN). The TIN must be clearly shown in the office as well as a proof of company incorporation.
Key Takeaways
- Essential Document: The Business Registration Certificate (BRC) is crucial for any business operating in Hong Kong, serving as legal proof of registration and linking to the Tax Identification Number (TIN).
- Application Timeline: The BRC must be applied for within 30 days of business incorporation.
- Electronic Process: The application process is now fully electronic, enhancing efficiency and convenience.
- Regular Renewal: The BRC requires timely renewal to avoid penalties and maintain business legitimacy.
- Update Requirements: Any changes in business details must be reported within one month to ensure the BRC remains valid.
How To Apply For A Business Registration Certificate?
According to the Inland Revenue Department, from 4 September 2023 onwards, the paper-based applications are fully replaced by the electronic service “Online Application for Business Registration Documents and Duplicate of a valid Business Registration Certificate”. You can still apply in person by appointment, but there are no walk-in services.
This is a video provided by the Inland Revenue Department, we will go through this video below in a step-by-step manner and teach you how to apply for the business registration certificate..
Start by selecting “View Services” on the eTAX page, then choose “Application for Supply of Information on the Business Register” and click “Begin Application.”
Step 1: Read the “Personal Information Collection Statement” and click “Agree.”
Step 2: Select “Apply for Supply of Information on the Business Register” and click “Continue.”
Step 3:
- (a) Enter the business registration number and branch number.
- (b) If it’s a main business, use triple zeros for the branch number. Select “Certified copy of a valid business/branch registration certificate,” enter the verification code, and click “Continue.”
- (c) Confirm your application details.
- (d) Choose to submit another application or not.
| Application channel | How it’s issued | Delivery method | Turnaround time |
|---|---|---|---|
| In-person to Business Registration Counter Services | Paper certificate | Collect over the counter | Issued within 30 minutes if properly filled |
| By post | Paper certificate | Send by post | Issued within two working days if properly filled |
| Through GovHK | Electronic record | Download via GovHK | Issued within 2 working days if properly filled |
Step 4: Select the delivery mode and fill in the applicant’s name and contact information. If receiving by post, include your postal address, then click “Continue.”
Step 5:
- (a) Note the “Transaction Reference Number” and click “Pay Now.”
- (b) Choose your payment method and click “Pay.”
Step 6:
- (a) After payment, save or print the acknowledgment page.
- (b) If collecting in person, visit the Business Registration Office within 2 months with the acknowledgment page and your ID. Companies should also bring their company chop.
What Information Does The Business Registration Certificate Include?
As we can see from the sample certificate image above, the business registration certificate includes the following information:
- Business Name: The registered name of the business or branch.
- Business Registration Number: A unique identification number assigned to the business. This is a very important number, as it is essentially your Tax identification Number as well. The next section will explain the importance of this number.
- Date of Issue: The date the certificate was issued.
- Business Address: The registered address of the business.
- Nature of Business: A brief description of the business activities.
- Type of Business Structure: Indicates whether it is a sole proprietorship, partnership, or corporation.
- Validity Period: The duration for which the registration is valid, typically one year.
- Registered Owner(s): Names of the business owners or directors, depending on the business structure.
This certificate serves as legal proof of the business’s registration and is required for various business operations, such as opening bank accounts and applying for licenses.
Business Registration Number Importance
The other important aspect of legality in your business is the Business Registration Number. It is your TIN (Tax Identification Number), which is one of the key elements in tax compliance. It is also used for filing annual returns.
By possessing a Business Registration Number, you can benefit in:
- Tax compliance
- Being the bridge from Hong Kong to Mainland China
- Receiving preferential treatment from states with bilateral trade agreements
- Ensuring adherence to legal requirements
- Protecting assets
Business Registration Certificate Vs Company Incorporation Certificate
Although the Certificate of Incorporation and the Business Registration Certificate have the same objective for the Hong Kong company, they are not the same.
Only the limited liability companies are required to file a Certificate of Incorporation to prove the establishment and registration of their business entities. The Business Registration Certificate is required for all companies running a business in profit in Hong Kong regardless of the business structure. It allows the company to get a registration number which is essentially its tax ID.
For a better grasp of the significant differences between the two, let’s take a look at their specific purpose and conditions, and the authorities that typically issue them. To understand more about what information exactly the business registration certificate includes, continue our guide below.
Read Hong Kong Company Registration Number vs Business Registration Number
What Business Structure is Required to Have a BRC?
There are no exemptions to the types of business that need business registration certificate from the business registration office and the Inland Revenue Department. It is a must for any company or enterprise that intends to make a profit, including local and offshore ones, and within the first month of commencement of the business.This includes:
- Sole proprietorship
- Partnership
- Unincorporated body of persons
- Non-Hong Kong company
Whether it is a partnership, an unincorporated entity, a corporation foreign corporation to do business in Hong Kong, or a non-profit organization, they all must be legally registered with the business registration certificate. In this regard, it is imperative to note down the issuing date of the certificate in order to keep renewing and meeting the necessary compliance with the incorporation statutes. A company secretary service can assist you with the non-financial part of financial administration and prevent you from getting overwhelmed.
When Do You Need To Apply For The BRC?
You must apply for the business registration certificate in no later than 30 days after your Hong Kong company is fully incorporated.
For example, a business that has a sole proprietorship or a partnership will need to apply for registration within one month of the start of the business operations. Likewise, foreign enterprises which are intending to start a branch in Hong Kong are also required to obtain this certificate within one month of their place of business establishment in Hong Kong.
Make sure you have all necessary documents ready for submission, such as:
- Proof of Identity
- Application Form
- Incorporation Form
- Articles of Association
Penalties for Not Applying for a BRC
Failure to obtain and maintain their business registration certificate can be costly and may have court and financial implications. These can be among other things such as fines and imprisonment.
These following penalties are quite severe for the violation. The maximum amount of fine and jail terms might be HK$5,000 and 1 year respectively.
Display Requirement for Business Registration Certificate
There is a lot of more to getting your BRC than just securing it. It must be displayed prominently and visible at your work place. It not only shows your compliance with the required regulations but it also boosts your business credibility. The business registration certificate is the proof of the legitimacy of your business after all.
If you do not show your BRC, you may face fines and penalties which could be up to HK$5,000. Thus, it is not just the business registration certificate that should be obtained but also the business certificate should be properly displayed. However, what is the most appropriate way and location for the BRC to be presented? Let’s explore this below.
Where to display your BRC
The procedure for exhibition of your BRC is also not quite complicated. It is imperative that it gets an imposing location at the address where your business is located. This requires that it be located in the front part of the space that is easily seen and accessed.
What should be also paid attention to is that the commercial registration certificate is not used in electronic form. It will have to be printed out or made in a physical form of some sort. If you don’t have your BRC displayed properly and in a prominent place, you can be fined HK$5,000 and up to 1 year of imprisonment, so try to display it the right way.
Renewal & Updates of the Business Registration Certificate
The BRC is not a single-step process it is a journey. Renewal is an ongoing task that it is needed to perform to ensure its validity. The business registration certificate will be valid for one to three years after the company has been incorporated. It is recommended that it is renewed one month before the expiry of the term.
Delay in renewal of the BRC will expose you to penalties that include a penalty of HK$300 for late renewal. If the permit lapses before it is renewed, you could be faced with additional penalties, court proceedings, and possibly be denied the chance to continue doing business in Hong Kong.
However, the question arises: what steps are taken to renew the BRC? In this regard, we will also give you the necessary details.
Timely renewal of BRC
Being up-to-date with registration certificate renewal is essential as far as the continuation of business activities is concerned. The renewal of BRC must be carried out every year, and no later than one month prior to the expiration date.
To renew your BRC, you will need to submit a filled out form along with the required documents and a crossed check either by mail to the address of the Inland Revenue Department (IRD) or in person at the IRD office with your old business registration certificate which will entice the IRD to issue a fresh demand note. It is the government that also sends notices and notifications for the renewal of the BRCs, which is very useful.
Nonetheless, I recommend you to make a reminder yourself every 12 months and not to forget about the coming deadline.
Business Details Update on BRC
As the business grows and expand, some details may evolve over time. It is important to update your business registration certificate whenever there are changes in the business details, for instance, when you have a new business address. Changing business details entails reporting to the Business Registration Office within one month of the alteration to ensure the validity of your BRC.
To update your valid business registration certificate, follow these steps:
- Visit the Office of the Business Registration in person with the old certificate or the digital certificate.
- Ask for a new demand note.
- Submit any changes in writing to the office’s attention within one month.
You should be aware that not keeping up your business registration certificate in the event of changes in the details of your business may lead to penalties and legal consequences.
Additional Licensing Process Considerations
As our main concern is the documents required for compliant business registration, you might still need some business licenses, permits, certificates, and approvals to run your business in Hong Kong. These types refer to money forms that are difficult to use other than the specified activities and usually come from the Hong Kong government.
To apply for these additional licenses and permits, you need to:
- Identify the necessary documents for the operation of your business by checking on the government website.
- Fill up the relevant forms
- Before you get your business licenses, ensure that you have registered your company respectively with the Companies Registry (CR).
- Conducting business activities in Hong Kong without the required permits is forbidden and may cause punishment like a fine and imprisonment.
Keep in mind that in Hong Kong the renewal period of various business licenses, i.e. the registration certificate of business, is not the same for each license type, so you should always check the official website for the renewal requirements for each license.
Why Should You Outsource The BRC Application Process?
Outsourcing the Business Registration Certificate (BRC) application process in Hong Kong offers several advantages:
1. Expertise and Knowledge
Professionals familiar with the local regulations can navigate the complexities of the application process, ensuring compliance and reducing the likelihood of errors.
2. Time Efficiency
Outsourcing saves valuable time, allowing you to focus on core business activities while experts handle the paperwork and interaction with government authorities.
3. Streamlined Process
Specialists can streamline the application process, often expediting approvals and minimizing delays, which is crucial for starting or expanding your business quickly.
4. Reduced Stress
Handling the application process can be stressful, especially for new entrepreneurs. Outsourcing alleviates this burden, providing peace of mind.
5. Access to Resources
Outsourcing firms often have resources and tools that can simplify the application process, making it more efficient and effective.
6. Cost-Effectiveness
While there is a fee for outsourcing, the potential costs associated with mistakes or delays can far exceed the expense of hiring professionals.
7. Ongoing Support
Outsourcing firms can provide ongoing support for future compliance, renewals, and other regulatory requirements, ensuring your business remains in good standing.
How FastLane Group Can Help?
At Fastlane, our team of experts has walked many companies through applying for and obtaining a Business Registration Certificate. Fastlane can also serve as your company secretary if you need assistance on various aspects related to business registration in Hong Kong. Having a professional and experienced firm on your side as a new company or business operating in Hong Kong can help you avoid the mistakes that many startups make.
Ready to learn more? Contact the Fastlane team today, and find out how our services can help you obtain your business registration certificate in Hong Kong—and much more!