For an effective working environment in Hong Kong, businesses must comply with regulations, and obtaining the necessary Hong Kong License is a key requirement. One of these eminent requirements is that of business licensing. A thorough insight into the licensing of companies in Hong Kong is essential for anyone intending to set up a business or expand it. Understanding the requirements and obtaining the necessary licenses can save you from legal charges and penalties. Moreover, certain industries require specific business permits in Hong Kong to operate legally.
If you are confused about Hong Kong business licenses, this article is for you. This guide provides a step-by-step approach to obtaining the necessary licenses, permits, and approvals for different business sectors. Whether you plan to open a restaurant, import/export goods, sell alcohol, or operate in the financial industry, this guide can help you navigate Hong Kong regulations efficiently.
Understanding the Regulatory Landscape in Hong Kong
Businesses in Hong Kong might encounter various types of regulatory requirements. These requirements depend on the industry and the work they are involved in. Businesses are required to obtain a Business Registration Certificate (BRC) and industry-specific licenses. Financial reporting, tax compliance, intellectual property protection, data protection and privacy laws, and environmental and public safety regulations are also some of the regulatory requirements in Hong Kong. Every business operating in Hong Kong must comply with the city’s regulatory framework, including licenses, permits, certificates, and approvals.
Hong Kong Business Licenses, Permits, Certificates, and Approvals
A license permits operating in specific industries such as food, finance, real estate, healthcare, etc. Business permits in Hong Kong are special permissions given for certain business activities, such as selling alcohol. Certificates refer to compliance-type documents, which are requirements needed to obtain a license or permit. Approvals are granted by the government to allow certain activities, like organizing a public event.
Although not all companies are required to obtain business licenses, some companies operating in specific fields need a business license. There are many licences for each sector in Hong Kong, such as a business license and an intellectual property license. The specific industries needing a business license include healthcare, e-commerce, travel, oil and gas services, hospitality, and others. The cost of business licenses in Hong Kong depends on the license you are applying for.
I have set up a business in Hong Kong. Do I need any other licenses?
After all, every business sector is specific. Therefore, every business is required to obtain the relevant licenses and business permits from authorised government agencies.
Entrepreneurs can find information from key government bodies involved in issuing these documents. The Hong Kong government’s website provides detailed information about business permits for different industries in Hong Kong.
To get the most precise information, follow the steps below.
- Visit the Business Licence Information Service (BLIS) portal.
- Search by products or services to find the required licenses.
- Apply through the relevant government department by following the instructions.
How to Get a License in Hong Kong: Application Process
Entrepreneurs must follow a set procedure to get a license in Hong Kong.
- Determine the Required Licenses : Each industry has different licensing requirements. Entrepreneurs must identify the licenses they need before starting their business. To identify the licenses, they can visit the BLIS portal.
- Submit an Online or Paper Application : Businesses can apply for Hong Kong business licenses through the GovHK website, the official government portal for online applications. You may also need to submit the application directly to some regulatory agencies, like the FEHD or the Trade and Industry Department.
- Prepare the Necessary Documents : The business license application is submitted along with some necessary documents, including a business registration certificate, proof of business address, identification documents of owners and directors, and other industry-specific documents.
- Application Review and Approval : Regulatory bodies review applications before approving them to ensure compliance with Hong Kong regulations. Once the license is approved, it is issued with a validity period. If you want to stay compliant and complete the application process smoothly, start early, be organised, and seek professional help from industry experts.
Maintaining Compliance or How to Avoid Penalties and Stay Ahead
Obtaining a business license is just the first step in running a business. It is crucial to maintain compliance with Hong Kong regulations. To maintain compliance, you should focus on renewing business licenses in Hong Kong.
The validity and renewal deadline of some licenses are mentioned in the examples below:
- The Liquor License is valid for one year, and the renewal application must be submitted at least three months before its expiry.
- The Food Business License also has a 1-year validity; the renewal deadline is 1 month before the expiry.
- The Money Service Operator (MSO) License is valid for two years and must be renewed 45 days before expiration.
Various government bodies regularly perform inspections and audits in Hong Kong. Health and Safety Inspections, Fire Safety Inspections, Financial and Compliance Audits, and Customs and Trade Inspections are just a few of the most common inspections and audits that the authorities carry out. It is highly advisable to keep a watchful eye on changes to Hong Kong regulations through the government website. This can help you stay ahead of competitors and save you from fines and penalties.
Examples of Key Business licenses for Hong Kong Businesses
To operate successfully in Hong Kong, businesses must obtain various business licenses. Below are detailed examples of some business licenses.
What Kind of license Do I Need to Sell Online in Hong Kong?
If you engage in trade or provide services online, you must adhere to Hong Kong regulations under the Business Registration Ordinance (Cap. 310) and obtain a Business Registration Certificate (BRC).
Do I Need a license for a Crypto Business?
Let’s look at the licensing requirements for the financial sector in Hong Kong. Businesses dealing with virtual assets or cryptocurrencies require specific licenses from the Securities and Futures Commission (SFC). The Virtual Asset Service Provider (VASP) License is required for cryptocurrency exchanges and digital asset platforms. Banking, insurance, securities, and virtual asset businesses require various licenses from the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC).
Import/Export licenses Restricted Items in Hong Kong Customs
Businesses involved in international trade should comply with Hong Kong customs regulations. The licenses required for import/export business in Hong Kong depend on the goods exported or imported by the company. Pharmaceuticals, firearms, and dangerous goods require special approval from various authorities. Tobacco products need a Tobacco Control Import License.
Can I Own a Real Estate Agency in Hong Kong as a Foreigner?
Foreigners can own a real estate agency in Hong Kong. An Estate Agent’s License (EAL) is required to set up an agency. Individuals involved in selling, buying, and renting properties need a salesperson’s license (SPL). Agencies must comply with the Estate Agents Authority (EAA) regulations to operate legally.
Do I Need a License to Sell Alcohol in Hong Kong?
Businesses engaged in selling alcohol require a Liquor License from the Liquor Licensing Board (LLB). If the alcohol is served on-site, they also need a restaurant license from the FEHD. To obtain a liquor license, you must submit the application form FEHB 106 to the LLB.
What other Licenses do I Need in the Restaurant Sector?
If you are wondering how to apply for a food business license in Hong Kong, this section has the answer. The restaurant industry is strictly regulated in Hong Kong. Opening a restaurant in Hong Kong requires multiple licenses to ensure food safety and hygiene. Businesses need a Food Business License from the Food and Environmental Hygiene Department (FEHD). If the company sells liquor, then it should have a Liquor License. A Hotel Licence is required to provide food services within a hotel.
The Requirements for Hosting Events in Hong Kong
Entertainment businesses and event organisers-specific arts, entertainment & recreation licenses. A Public Entertainment Permit is required for concerts, theater performances, and festivals. A Cinema and theatre license is needed to set up a cinema or a theatre. It is issued by the Television and Entertainment Licensing Authority (TELA).
Are you Confused About the Whole Process? Seek Professional Assistance in Hong Kong!
Entrepreneurs should take the necessary steps to secure the required licenses and business permits in Hong Kong. The consequences of operating a business without a license in Hong Kong can be severe. Therefore, entrepreneurs can consult with lawyers, accountants, or business consultants specializing in licensing.
Consulting with experts can help you obtain all the licenses and permits correctly. Moreover, they have years of experience in the regulatory framework of Hong Kong. They can help you avoid mistakes in the application process. This can help you be safe from legal charges and penalties. If you are looking for a licensing consultant in Hong Kong, you can contact Startupr. It is a reputed service provider in Hong Kong that offers many business services.
