After incorporating a company in Hong Kong, you need one more thing - registering it with the Business Registration Office. You will be issued with a business registration certificate (BRC) which must always be displayed at your company’s head office for inspection by Hong Kong authorities. This post is a closer look at BRC to help you answer the question, “Does your business need a business registration certificate?”
What is Business Registration?
Business registration involves registering a company to run its operations in Hong Kong. You are required to make an application to the Inland Revenue Department (IRD) to get issued with a business registration certificate (BRC). The certificate implies that you have notified IRD about the business, and the company is now official.
Businesses Required To Have Business Registration Certificates
Hong Kong Business Registration law requires every individual running a business in its jurisdiction to have a business registration certificate. However, there are some exceptions. So, here is a list of the businesses that require the certificate and those that do not
• Any Type Of Business Or Activity Opened For Profit
If you come to Hong Kong to run a business, such as retail enterprises or manufacturing, the law requires you to apply for a business registration certificate. You are required to register the business within one month of starting the business operations.
• Clubs Offering Membership For Sale
One of the most lucrative businesses in Hong Kong is running clubs and selling membership. These are enterprises such as gyms and meeting rooms that charge alumni for a fee. In order to continue offering these services, you should get a business registration certificate and display it in the headquarters.
• Representative Offices In Hong Kong
If your company is a representative office of the parent firm back home, its mandates might include finding local vendors and running marketing tasks. These activities are expected to help the parent company win competitive advantage and grow sales. So, you are required to register with the Business Registration Office after setting up operations in Hong Kong.
Other businesses required to have a business registration certificate include non-Hong Kong companies with properties on the island, hospitality companies, and consultancies.
Only the following activities are required not to have a business registration certificate in Hong Kong:
i. Approved charity organizations.
ii. Businesses dealing with agriculture, rearing livestock, fishing, and gardening.
iii. Individual shoe polisher businesses.
iv. Hawking business. In this case, you will need to get a license under the Hawker Regulation.
Apply For Business Registration Certificate Using An Agency
Although you are required to apply for the business registration certificate one month after starting operations, working with an agency can simplify the process. The agency can help you to apply for both the certificate of incorporation and business registration certificate (BRC) at the same time. This implies that you will receive both certificates at the same time. Note that the agency of experts will not just help with company incorporation and business registration, but you can also use it to act as the company secretary and crafting market entry strategies.
The Bottom Line On Business Registrations
Business registration in Hong Kong is a statutory requirement, and you should adhere to it to avoid incurring penalties. As far as your business is formed to make profits, it is paramount to have a business registration certificate (BRC). Consider working with an agency of experts because it can also hold your hand during company registration and entry into the Hong Kong market.
