It is mandatory to register your business with the Inland Revenue Department (IRD), Hong Kong. If you want to start a business in Hong Kong, you need to have a Hong Kong Business Registration Certificate. For that, fees have been set by the government which was provided in the Revenue Order 2022.
But, the Revenue (Reduction of Business Registration Fees and Branch Registration Fees) Order 2022 expired on April 1st 2023. From now on, if you want to register your business or branch, you need to pay the authorized business registration fees or branch registration fees together with the levy to the Business Registration Office. Hong Kong Business Registration Certificate and Hong Kong Branch Registration Certificate are of two kinds. Startup will provide a 1-year certificate renewal for clients, and in the case of a 3-years certificate, there is no need for renewal every year.
Hong Kong Business & Branch Registration Fees 2023
The new fee for 1-year Certificate is given below:
Business Registration Certificate
- Fee – HK $2,000
- Levy – HK $150
- Total – HK $2150
Branch Registration Certificate
- Fee – HK $73
- Levy – HK $150
- Total – HK $223
The new fee for a 3-year Certificate is given below:
Businesses Registration Certificate
- Fee – HK $5200
- Levy – HK $450
- Total – HK $5650
Branch Registration Certificate
- Fee – HK $189
- Levy – HK $450
- Total – HK $639
The above-provided amounts may vary according to the announcements of the government. The government has the authority to change the fees which may vary over different years.
What are the businesses that need to be registered? Does every person have to do so?
According to the Inland Revenue Department (IRD), Hong Kong, businesses that need to be registered include,
- any form of trade, commerce, craftsmanship, profession, calling or other activity carried on for gain (whether through a brick-and-mortar presence or the internet);
- any club which provides facilities, services and exclusive club premises to its members for social intercourse or recreation;
- every company incorporated in Hong Kong under the Companies Ordinance or non-Hong Kong company that has established a place of business in Hong Kong, regardless of whether it is carrying on any business in Hong Kong;
- every non-Hong Kong company that has a representative or liaison office in Hong Kong, or has let out its property situated in Hong Kong, regardless of whether it has established a place of business in Hong Kong; and
- every limited partnership fund registered under the Limited Partnership Fund Ordinance, regardless of whether it is carrying on any business in Hong Kong.
However, 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.
And, it is also important that every company incorporated in Hong Kong needs to file an Annual Return (NAR 1) which is related to your company particulars as a recapitulation (nothing related to your business or profits). You can learn more about NAR1 here.
Need Expert Assistance in Registering Your Hong Kong Business?
In case you need expert assistance in registering your Hong Kong Business, Startupr is here to help you. We also offer expert assistance in bank account opening, mail forwarding, accounting and bookkeeping and virtual office service in Hong Kong. We also have an application called Eqvista which assists in issuing and managing your company shares and offering several other features including cap table management, business valuation, financial modeling etc.
As the Revenue Order 2022 has already expired, you must follow the new guidelines issued by the government. The Hong Kong Business Registration Fee 2023 has been provided in the new order. If you want to commence a business in Hong Kong and your business falls under the above-provided categories then you must register your business in IRD and have a Business Registration Certificate. If you have an office and its branches then each branch needs to be registered in IRD and have a Branch Registration Certificate. According to IRD, in case anyone is found guilty of providing false information or doing a wrongful act while registering, they will be liable to a fine of $5000 and 1 year imprisonment term.