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A Comprehensive Guide On The Hong Kong Business Registration Fee

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Hong Kong Business Registration Fee

Hong Kong laws state that businesses intending to operate in the jurisdiction must register with the Inland Revenue Department (IRD). It’s commonly called the Hong Kong Business Registration. This business registration ensures entrepreneurs can access all their legal rights, obligations, and benefits. 

To avoid unnecessary sanctions, business owners need to ensure that their business registration is up to date, including paying the business registration fee. Many business owners are unclear about the meaning and importance of the business registration fee. This piece will provide a detailed Hong Kong business registration fee breakdown.

What Types of Companies Require Business Registration?

Hong Kong businesses are required to register with the government, and failure to do so may result in penalties or legal action. Business registration in Hong Kong is required for most businesses, including those that operate from home, even if the business has yet to make a profit. Now, let’s review the types of businesses that require business registration in Hong Kong.

Sole Proprietorships

Sole proprietors are individuals who own and operate their businesses. In Hong Kong, sole proprietors must register their businesses with the government if they wish to conduct business activities. This includes obtaining a Business Registration Certificate and a Business Registration Number. The business owner must also register for any necessary licenses and permits to operate their business.

Partnerships

Partnerships in Hong Kong require business registration, just like sole proprietorships. Partnerships are formed when two or more individuals come together to start a business. Each partner is personally liable for the business’s debts and obligations. Therefore, it is crucial to register the partnership to ensure that all partners are aware of their responsibilities and liabilities.

Limited Companies

Limited companies are separate legal entities from their owners. They require business registration with the Hong Kong Companies Registry. This includes obtaining a Certificate of Incorporation, a Business Registration Certificate, and a Business Registration Number. Limited companies must also file annual returns and maintain proper accounting records.

Branch Offices

Foreign companies wishing to establish a presence in Hong Kong must register their branch office. This includes obtaining a Certificate of Registration and a Business Registration Certificate. The branch office must also comply with all Hong Kong laws and regulations.

Non-Profit Organizations

Non-profit organizations that operate in Hong Kong, such as charities and foundations, must also register their business with the government. This includes obtaining a Business Registration Certificate and a Business Registration Number.

How to Register Business in Hong Kong

Registering a business in Hong Kong is a straightforward process that can be completed within a few days. The process involves submitting the required documents and information to the Hong Kong Companies Registry and the Business Registration Office. Next, we will outline the steps to register a business in Hong Kong.

Choose a Business Structure

Before registering a business in Hong Kong, you must choose a business structure that suits your needs. The most common business structures in Hong Kong are sole proprietorships, partnerships, and limited companies. Each structure has advantages and disadvantages, and it’s crucial to understand them before deciding.

Choose a Company Name

Once you have chosen a business structure, the next step is to choose a company name. The company name should be unique and not already used by another company. You can check the availability of the name on the Hong Kong Companies Registry website.

Prepare and File Documents

The next step is to prepare and file the required documents with the Hong Kong Companies Registry. The documents required depend on the business structure you choose. Here are the documents required for each business structure:

Sole Proprietorship:

  • Application for Business Registration
  • Copy of Hong Kong Identity Card or Passport

Partnership:

  • Application for Business Registration
  • Copy of Hong Kong Identity Card or Passport of each partner
  • Partnership Agreement

Limited Company:

  • Application for Incorporation of a Company
  • Articles of Association
  • Form NNC1 (Incorporation Form (Company Limited by Shares))

Note that you must appoint a company secretary and a director for a limited company.

Apply for Business Registration Certificate

Once the documents are filed with the Hong Kong Companies Registry, the next step is to apply for a Business Registration Certificate. You can do this online, by mail, or at the Business Registration Office. You will need to pay a registration fee based on the type of business structure you choose.

Obtain Licenses and Permits

The type of business you wish to open will determine the licenses and permits you need to get from the relevant authorities. For example, if you plan to open a restaurant, you must obtain a food license from the Food and Environmental Hygiene Department. You can check the licensing requirements on the Hong Kong government website.

Open a Bank Account

The last thing to do is to open a bank account for your firm. This is important for managing finances, accepting payments, and paying bills. You must provide the Business Registration Certificate and other documents to open a bank account.

How to Pay your Business Registration Fee

The business registration fee in Hong Kong can be paid online or in person at the Business Registration Office. To pay online, you must have a valid credit card and a registered online account with the government. You can access the government portal and select the “pay business registration fee” option. The fee can also be paid in person at the Business Registration Office by cash, check, or credit card. The fee varies based on the type of business structure, and it needs to be renewed annually.

How Can We Help

Running a Hong Kong business is plenty of work, especially in its early stages. But no one is excused from paying the Hong Kong business registration fee. To avoid any sanctions, it’s worth hiring a partner to handle the process for you. Premia TNC is the ideal partner to make this happen. 

Premia TNC is a top-rated business consultancy firm. It’s our job to partner with companies to keep them performing at the top level. We can help you handle business incorporation, including paying the Hong Kong business registration fee. Our job is to use a team of experts to tackle basic business processes, such as incorporation, taxation, accounting, etc.

Q: How much does it cost to register a business in Hong Kong?

A: Every Hong Kong business should be registered. It’s a way to prove the business’s authenticity and protect consumer interest. The business registration fee for each type of business varies. Business owners should research to determine how much they are liable for.

Q:How do I pay the Hong Kong business registration fee?

Business owners can decide how they wish to pay their Hong Kong business registration free - online or physically. It’s best to pick whichever alternative they’re familiar with.

Q: Can I hire someone to pay Hong Kong business registration fee?

Business owners with limited time on their hands can hire another entity - individual or organization to pay their business registration fee. However, such an entity must be licensed to perform such activity.