What is the cost of a one-year/three-year business registration certificate? How to deal with the renewal of business registration certificate

The “Business Registration Ordinance” stipulates that those who operate businesses in Hong Kong must apply for a business registration certificate (Business Registration, referred to as BR) within one month of opening. However, many people do not know that the business registration certificate is valid for one year and three years. What is the cost? Are there any precautions for the renewal of the business registration certificate? This article will explain to you one by one.

What are the types of Business Registration?

According to the “Business Registration Ordinance”, business registration can be divided into two types: Business Registration and Branch Registration Certificate.

As far as the validity period is concerned, the Business Registration Certificate (Business Registration) and the Branch Registration Certificate will be divided into 1-year and 3-year periods. There is basically no big difference except for the validity period and the fee.

What is the application fee for business registration?

Before applying for a business registration certificate (Business Registration), it is necessary to understand the cost of business registration. Whether you want to apply for a one-year permit or a three-year permit, the business registration certificate (Business Registration) fee includes the registration fee (charged by the Inland Revenue Department) and the levy of the Insolvency Wage Protection Fund (collected by the Labour Department).

Starting from April 1, 2020, as indicated in the Budget, there will be a discount of HK$2,000 for the fees for business registration. The fees are as follows:

• Business registration certificate, registration fee (free) plus levy ($250) for a one-year certificate, totaling $250;

• Business Registration Certificate, registration fee ($3,200) plus levy ($750) for a three-year certificate, totaling $3,950;

• Branch registration certificate, registration fee (free) plus levy ($250) for a one-year certificate, total $250;

• Branch Registration Certificate, registration fee ($116) plus levy ($750) for a three-year certificate, totaling $866

Therefore, the proprietor can consider applying for a one-year or three-year business registration certificate (Business Registration) according to the nature of the business whether it is a long-term or a short-term operation.

In addition, if the average monthly business volume of the business is not more than $10,000 (profit based on services), or $30,000 (other businesses), you can also choose to waive the payment of business registration fees and levies, but the applicant must not operate too many businesses. In one (sole proprietorship, the partnership also).

Business Registration Certificate renewal?

Another thing to pay attention to, once the business registration certificate (Business Registration) expires and needs to be renewed, the Inland Revenue Department will generally issue a business registration payment notice in the middle of the month one month before the effective month of the business registration renewal certificate, if After completing the payment, the Business Registration will be validly renewed.

However, if you have not sent the notice to you after the above time, you need to notify the Commissioner of Inland Revenue in writing within 1 month of the expiry of the current Business Registration. matter.

Failure to register and renew business registration certificate on time

If the proprietor forgets to register or renew a valid Business Registration on time, the consequences for violators can be severe, with the chance to be fined up to HK$5,000 and imprisoned for one year.

In addition, if anyone applies for a business registration certificate (Business Registration) after one year of business operation, the applicant needs to make up the business registration fee and levy paid for that year, as well as all business registration fees and levies that should be paid in previous years. fee.

The above information is for reference only. If you have any questions about business registration certificates and business registration, we welcome your inquiry.