Paul Chan, Hong Kong’s financial secretary, unveiled the Special Administrative Region’s (SAR) government budget for the fiscal year 2024–2025 on February 28, 2024 (the “2024–25 Budget”). The budget outlines the government’s plans for the upcoming fiscal year. It includes projected revenue from taxes, fees, other sources, and planned expenditures on healthcare, education, infrastructure, and social welfare.
Below, we discuss the changes in Hong Kong business registration fees and what business owners should know about them.
Business Registration Fee Increase in Hong Kong
The Business Registration Ordinance (BRO) requires every business owner in Hong Kong to submit an application for business registration and pay the required business registration fee within one month of the business’s launch date.
The one-year and three-year certificates are the two varieties of business registration certificates in Hong Kong. The 2024–25 Budget report has suggested raising the business registration costs by $200 to $2,200 per year (or a 10% increase) from April 1, 2024, because these rates have not been increased for nearly 30 years.
Waiver of Business Registration Levy
A two-year waiver of the HK$150 (US$19.16) business registration charge owed to the Protection of Wages on Insolvency Fund would be implemented to lessen the burden on enterprises. Also, the total business registration certificate Hong Kong fees will be HKD 2200+ 150 = HKD 2350 after two years.
A business operator must pay a levy ($150 annually) for each business or branch registration in addition to the business registration or branch registration cost. This is done to support the Protection of Wages in the Insolvency Fund. In light of the Fund’s healthy financial situation and to mitigate the impact of the increase in business registration and branch registration fees on firms, the 2024–25 Budget has proposed to suspend the $150 levy for two years beginning on April 1, 2024.
Impact on Business Owners
Small business owners have to pay an increased registration fee for their company, so they need to plan their financial budget. The fee structure proposed by the Hong Kong government has made the business market more competitive
The Financial Services, Treasury Bureau, and Securities & Futures Commission (SFC) have been tasked with creating a vision statement and roadmap to support businesses and financial institutions with sustainability reporting and data analysis to encourage sustainable financing. As a result, businesses must ensure that their sustainability disclosure policies comply with global guidelines.
Also, the business registration certificate in Hong Kong is compliant with the updated fee regulations.
Want to Know More about the Updated Hong Kong BRC Fees?
Assessing a service provider’s experience, expertise, and standing in the industry is essential before choosing one for help with Hong Kong company registration. You may evaluate their qualifications by checking that they are registered with the relevant government agencies, looking through client endorsements, and asking for recommendations from other companies. And if you want to know more about the 2024-25 Business Registration Compliances of the Hong Kong Budget, you can visit us at Startupr.