What does it mean if the word “CORP” is printed in the business nature column of the business registration certificate? Once you find that your business registration certificate has “CORP” on it, the consequences can be big or small. If you don’t handle it properly, you will be fined and imprisoned at any time? This article will clear the above doubts for you.
What does “CORP” mean in the business nature of the business registration certificate?
If you find the word “CORP” after the “Nature of Business” column when you register a company in Hong Kong and apply for a business registration certificate, you need to pay more attention to avoid your company being sued by the Inland Revenue Department.
Many people don’t know the meaning of “CORP”. It turns out that as early as November 30, 2018, the Hong Kong Inland Revenue Department stipulated that all company corporations operating in Hong Kong, regardless of the form of business operation, should start their business operations. Business registration is required within one month from the start of the business, and the “Nature of Business” (or business scope) column is mandatory on the Business Registration Certificate.
The “CORP” in the column of business nature means that the public office “has no specific business restrictions, as long as it is a business that complies with the provisions of the company law, it can be operated.”
Therefore, the business nature of many newly registered companies is also “CORP” by default, allowing corporations to supplement the business nature when issuing them. Once the company fails to deal with the modification of the business nature in a timely manner, it will receive a penalty from the tax bureau at any time.
The nature of the business is “CORP”, what should I do?
If your company’s business registration certificate shows “CORP” for a long time, you will receive a “Notice of Incorporation Business Commencement” issued by the Business Registration Officer of the Inland Revenue Department. The proprietor will be required to add the nature of business. The proprietor should provide the business scope or nature of business as soon as possible to apply for a new business registration certificate, and please keep in mind that this is mandatory.
In the “Notice of Business Commencement of Corporations”, the Business Registration Ordinance is quoted, which stipulates that corporations registered in Hong Kong must supplement relevant business information, including business name, to the Inland Revenue Department in writing within one month after the actual business opening date. , business nature and description, business address and opening date, etc., or you can complete the form “IRBR200” and return it to the Inland Revenue Department for notification.
Among them, when filling in business, you should pay attention to the specification: use Chinese with no more than 28 characters; English with no more than 60 letters, including punctuation.
The business nature of a company registered in Hong Kong can be changed freely. If your company needs to change or increase its business nature due to reasons such as changing businesses or transferring companies, you should also apply for a new business registration certificate as described above. For some special industries such as banking, trust, construction, etc., you need to apply for a license to complete the procedures.
Penalty for not processing “CORP”
Once it is checked and it is found that the proprietor has not added “business nature” on the business registration certificate, it is illegal, and the court will issue a summons to the relevant proprietor to impose a fine or imprisonment on the company.
Consequences for failure to comply with the above are subject to a maximum fine of HK$5,000 and imprisonment for one year.
The above information is for reference only. If you have any questions about tax declaration and accounting, we welcome your inquiries.