Business Certificate Renewal in Hong Kong
The Hong Kong Business Registration Ordinance requires every person who carries on a business in Hong Kong to apply for business registration within one month from the date of commencement of the business, and to display a valid Business Registration Certificate at its place of business. If you carry on business at a branch, you also need to apply for branch registration.
A person who is only holding an office or employment is not regarded as carrying on any business and is not required to apply for business registration.
Business Registration Renewal Process
A Business Registration Certificate is generally valid for one year, running from the date of commencement of business (anniversary date) to the date immediately before the next anniversary. However, under section 6(5C) of the Business Registration Ordinance (Cap. 310), an applicant may elect for the issue of BRCs with a validity period of three years.
An election under section 6(5C) is also applicable to the BRCs of all branches of the business. The expiry date of any Branch Registration Certificate will be the same as the expiry date of the current BRC of the main business.
Business Registration Certificate Fees
Hong Kong Business Registration fees include a registration fee and a levy for the Protection of Wages on Insolvency Fund. The current rates are as follows:
- Business Registration Certificate
- 1-year HKD2,200 (c. USD280)
- 3-year HKD6,020 (including HKD300 levy)
- Branch Registration Certificate
- 1-year HKD80
- 3-year HKD508 (including HKD300 levy)
Business Registration Number (BRN)
In December 2023, the Hong Kong Companies Registry introduced a new Unique Business Identifier (UBI) system for all entities under the administration of Hong Kong’s Registrar of Companies. Known as the Business Registration Number (BRN), it is comprised of the first eight digits of the Business Registration Certificate number assigned by the IRD’s Business Registration Office.
The BRN is an essential identifier for a Hong Kong incorporate or registered entity and serves a variety of purposes:
- Tax compliance – the IRD uses your BRN to track financial transactions, validate tax filings and confirm that income is being accurately reported. BRNs are also shared with foreign governments as a Taxpayer Identification Number (TIN) for tax treaty purposes or to comply with international tax regulations.
- Legal compliance – the Companies Registry uses the BRN as an identification number of every live company on the public register. The IRD requires a BRN for activities ranging from filing taxes and paying employees to withholding taxes. You cannot legally conduct business, hire employees or withhold taxes without a valid BRN.
- Financial institutions – banks and investment firms use BRNs as part of the Know Your Customer (KYC) process to confirm account holders’ identities for account opening and to mitigate the risk of money laundering and tax evasion. Financial institutions also use BRNs to report financial information to the IRD.
- Credibility – if you are negotiating contracts or working with financial institutions, a valid BRN demonstrates that your business is established and compliant. Certain transactions can also require one.
- Accounting and Audit – a valid BRN links income, payments and withholdings with your business, which is essential for accounting and audit purposes.
Cancellation of Business Registration
Every company incorporated in Hong Kong or re-domiciled company registered under the Companies Ordinance (Cap. 622), whether or not in operation, is deemed to be a person carrying on business and is required to take out a Business Registration Certificate annually until the company is dissolved or deregistered under the Companies Ordinance.
If you cease your business or any branch business, you must notify the Business Registration Office in writing within one month of the date of cessation. The business registration number / branch registration number, name, address and date of cessation should be stated clearly.
It is necessary to advise of a correspondence address after cessation and a contact telephone number. It is important to remember that the business registration fee and levy must be paid up to and including the year in which the business ceases.
Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
