Complete Guide to Hong Kong Business Registration Certificate Application Process: 4 Types & Application Steps
Whether operating as a sole proprietorship, partnership or limited company in Hong Kong, applying for a Business Registration Certificate (BR) is mandatory. Many entrepreneurs or persons-in-charge of newly established companies may be unfamiliar with the application process. This article will analyze in detail the application process, required documents and fees for Business Registration Certificates to provide you with a comprehensive guide.
Importance of Business Registration Certificate and Legal Requirements
According to the Business Registration Ordinance (Chapter 310), all persons or companies operating businesses in Hong Kong must apply for business registration within one month of commencing business. This is a legal requirement and non-compliance may result in penalties. A Business Registration Certificate is not only proof of legal operation but also an important document for dealing with government departments, banks and business partners.
In fact, many entrepreneurs ask: "Do I need to apply for a Business Registration Certificate for my small online shop or Instagram store?" The answer is yes. Regardless of business size, as long as you conduct business activities and generate profits in Hong Kong, you need to apply for business registration.
Four Major Steps of Business Registration Certificate Application Process
Applying for a Business Registration Certificate can be divided into four main steps:
- Choose Application Method: Can apply in person at the Business Registration Office of IRD, by mail or online
- Determine Application Category: Choose appropriate application type based on business nature
- Obtain and Complete Application Form: Select corresponding form based on business type
- Prepare Application Materials and Pay Fees: Prepare required supporting documents and pay registration fee and levy
Once the above preparations are completed, you can submit the application according to your chosen method.
Three Application Methods Explained
1. In Person
You can apply at the Business Registration Office on 2/F of the Kai Tak IRD Building. To save waiting time, it is recommended to make an online appointment for counter service.
Advantages: Can make enquiries on the spot and obtain paper BR certificate about 30 minutes after submission. Disadvantages: Need to go in person and may need to queue.
2. By Mail
Mail completed application form and required documents to P.O. Box 29015, East Kowloon Post Office.
Advantages: No need to go in person, convenient for remote applicants. Disadvantages: Longer processing time, usually takes about 2 working days after IRD receives application.
3. Online
Apply electronically through the GovHK website. Note this method is only available for sole proprietorships, partnerships (except Limited Partnership Funds) and branch registrations. Digital certificate or iAM Smart+ account required for identity verification and digital signature.
Advantages: Can apply 24 hours, no need to visit office. Disadvantages: Requires digital certificate or iAM Smart+ account and not applicable to all business types.
Four Major Application Categories
Before applying, you need to determine your business registration type as different types require different forms and documents. Here are the main categories:
1. Sole Proprietorship - Form 1(a)
Applicable to businesses wholly owned by one person.
Required Documents:
- Copy of proprietor's HKID; if non-HK resident, copy of passport or resident ID issued by relevant government authority.
2. Body Corporate (Company) - Form 1(b)
Applicable to companies incorporated in Hong Kong or overseas.
Required Documents:
- Copy of Certificate of Incorporation or equivalent document issued by local government of place of incorporation;
- If not in Chinese or English, certified Chinese or English translation required.
3. Partnership Business - Form 1(c)
Applicable to businesses owned jointly by two or more persons.
Required Documents:
- Copies of HKID of all partners; if non-HK residents, copies of passports or resident IDs issued by relevant government authorities.
4. Limited Partnership Fund - Form 1(CA)
Applicable to limited partnership funds registered under Limited Partnership Fund Ordinance (Chapter 637).
Required Documents:
- Copy of Certificate of Registration issued by Companies Registry;
- Copy of general partner's HKID; if non-HK resident, copy of passport or resident ID;
- If general partner is body corporate/limited partnership fund/limited liability partnership, copy of valid BR or incorporation/registration certificate.
There are also other categories for unincorporated bodies (Form 1(c)) and branch businesses (Form 1(d)), each with different document requirements.
How to Obtain and Complete Application Forms
You can obtain IRBR194 application form through:
- Email to taxbro1@ird.gov.hk
- Mail request
- Fax to 2824 1482
Sample forms for different business types available for download on IRD website but cannot be used directly for application:
- Form 1(a) - Business Registration Application for Individual Carrying on Business in Hong Kong
- Form 1(b) - Business Registration Application for Body Corporate
- Form 1(c) - Business Registration Application for Partnership (except Limited Partnership Fund) or Other Body Unincorporate Carrying on Business in Hong Kong
- Form 1(CA) - Business Registration Application for Limited Partnership Fund
- Form 1(d) - Business Registration Application for Branch Registration
Business Registration Certificate Fees and Levies
Business Registration Certificates are available for one-year or three-year validity periods, with fee structure including registration fee and levy.
Validity Period and Commencement Date
Except for local companies incorporated through one-stop company incorporation and business registration service, BR certificate commencement date varies by application type:
- Hong Kong registered companies: Usually the date of successful registration application.
- Non-Hong Kong companies operating in Hong Kong: Should be the date business operations commenced.
Fee Structure
1-year Certificate (as of 2023):
- Registration fee: $2,000
- Levy: $250
- Total: $2,250
3-year Certificate (as of 2023):
- Registration fee: $5,200
- Levy: $750
- Total: $5,950
Please note fees may be adjusted. Check IRD website for latest fee information before applying.
Frequently Asked Questions
Q1: Do online shops or social media stores (e.g. IG shops) need to apply for BR certificate?
A: Yes, according to Hong Kong law, any person or business conducting business activities and generating profits in Hong Kong must apply for BR certificate regardless of size or whether physical store exists. Even small online shops or social media platform stores need business registration if there are commercial transactions and profit-making purposes.
Q2: How long does BR certificate application take?
A: Processing time varies by application method:
- In person: Can obtain BR certificate in about 30 minutes
- By mail: About 2 working days after IRD receives application
- Online: Can download electronic record after about 2 working days
Q3: What are the consequences of not applying for BR certificate on time?
A: According to Business Registration Ordinance, failure to apply for business registration within one month of business commencement may result in penalties. Recommended to apply promptly to avoid unnecessary legal risks.
Conclusion
Although the BR certificate application process is relatively simple, first-time entrepreneurs may still be unfamiliar with many aspects. If you wish to save time and effort, L&F Business Services team can provide professional assistance.
You don't have to go it alone on your entrepreneurial journey! L&F Business Consulting provides one-stop business consulting services with professional knowledge and rich experience to help you realize your business blueprint! For any questions about BR certificates or Hong Kong company registration, feel free to contact L&F Business Services team anytime.