The business registration levy has been reduced to HK$150. What is the total fee for applying and renewing a business registration certificate this year?

According to the Business Registration Ordinance, business registration is required for any form of business. In recent years, in view of the financial situation of Hong Kong, upon the suggestion of the Financial Secretary, the business registration fee has been waived by HK$2,000 until March 31, 2023. The Business Registration Ordinance (Amendment to Schedule 2) Order 2022, which was recently passed by the Legislative Council, even lowered the business registration levy rate to HK$150.

Reduced business registration levy to HK$150

The Business Registration Ordinance (Amendment of Schedule 2) Order 2022 was gazette on 10 June this year. According to the order, from June 17, the levy rate for business and branch registration will be reduced from 250 yuan per year to 150 yuan per year.

The Protection of Wages on Insolvency Fund made a proposal to reduce the levy rate after considering the sound financial position of the Fund and other relevant factors and was approved by the Labour Advisory Committee and supported by the Legislative Council.

The new business registration levy rates apply to:

• Incorporation submission for simultaneous business registration application on or after 17 June;

• Business or branch registration certificate effective on or after June 17th.

What is the total fee for applying and renewing a business registration certificate this year?

The Gazette Decrees to lower the “Business Registration Levy” (Levy), but the fee for the Hong Kong Business Registration Certificate also includes the “Business Registration Fee” (Fee).

Due to the tax measures in the 2021-22 Budget, all application and renewal fees for business registration certificates can be obtained in accordance with Section 5A(1)(a) of the Business Registration Ordinance (Cap. 310). $2,000 HKD waiver. As suggested by the Financial Secretary, the relief measure will be extended for one year from April 1, 2022, that is, until March 31, 2023. All applications for business registration fees can be waived by HK$2,000.

In other words, before March 31, 2023, the total fee for applying and renewing a one-year business registration certificate is HK$150 (business registration fee: $0, business registration levy: $150).

For comparison, from March 31, 2023, unless there is a new relief order, the total fee for applying and renewing a one-year business registration certificate will be HK$2,150.

Note the one-year, three-year validity period

There are two types of business registration certificates and branch registration certificates, which are valid for one year and three years. For the amount to be paid for each registration certificate, please refer to the latest business registration fee and levy table.

The amount payable is determined on the effective date of the registration certificate. For a local company established under the one-stop company registration service, the amount payable for the first business registration certificate is determined by the date of submission of the relevant incorporation to the Companies Registry, and the effective date of the registration certificate is its registration date. For subsequent renewals, the amount payable will be determined on the commencement date of renewal. For a new business opened by a non-local company, the effective date of its first registration certificate is the date of business opening, not the date of application for business registration or branch registration.

The above information is for reference only. If you have any questions about tax declaration and accounting, we welcome your inquiries.