Top 10 Frequently Asked Questions about Business Registration Certificates

The Business Registration Certificate is valid for 1 year. In the course of business, you may encounter problems such as changing your name, changing the nature of your business, changing your address, or under what circumstances you will be exempted from paying the registration fee, etc. This article will summarise the Frequently Asked Questions (FAQs) about the Business Registration Certificate for you.

What will happen if I do not submit my Business Registration Certificate application on time?

According toInland Revenue DepartmentFailure to submit an application for a Business Registration Certificate in a timely manner will render the offender liable to a fine of $5,000 and imprisonment for one year.
Any person who registers a business more than 12 months after the commencement of the business shall pay.
(a) business registration fee and levy for the year; and
(b) under section 7(3) of the Business Registration Ordinance in respect of business registration fees and levies for previous years.

Is there any exemption from registration?

All business activities for profit, in whatever form, are required to apply for a business registration certificate in a timely manner, although there are exceptions:
Charitable organisations (charitable organisations charged to profits tax on profits derived from a trade or business do not qualify for exemption from business registration);
Agricultural, horticultural or fishing operations (this exemption does not apply to companies incorporated or required to be registered under the Companies Ordinance);
Shoe shine business; and
All types of hawking businesses (except those operating in buildings) for which a licence is required under the Hawker Regulation.
The business registration of the above businesses is exempted from the application for a Business Registration Certificate if they meet the eligibility criteria.

What are the conditions for exemption of business registration fee and levy?

The average monthly business turnover of a business providing services for profit does not exceed $10,000;
The average monthly business turnover of the other businesses does not exceed $30,000;
In person or in writing by post"Form 3.The Government will apply for exemption of the business registration fee and levy by means of GovHK or through GovHK:
Application information is required to provide the average monthly amount for the 6 months prior to the submission of the application. The exemption will only be granted at the time of application and will be valid for 1 year until the expiry of the "Business Registration Certificate stating the grant of exemption". Subsequent applications for exemption must be resubmitted annually in accordance with the exemption conditions and application procedures in force at the time.

Do I need to apply for a Business Registration Certificate for online business such as IG shop?

This question is often asked: Can a small business with a monthly business turnover of less than $30,000 be exempted from this requirement?Application for Business Registration CertificateWhat?
All profit-oriented business activities, regardless of their form, are required to apply for business registration certificates in a timely manner. The Inland Revenue Department (IRD) has also made it clear that online businesses are also required to comply with the business registration requirements, and that small-scale business operators eligible to apply for exemption from the payment of business registration fees and levies may apply for such exemption, but they are still required to apply for business registration.
That is to say, the exemption of business registration fee is based on the application for a valid Business Registration Certificate before applying for the exemption, and it is not the case that traders such as online shops/ig shops consider that their turnover can be exempted from the business registration fee and levy, which is tantamount to not needing to apply for a Business Registration Certificate.

Business Registration Certificate Renewal and Replacement

For registered businesses, the Business Registration Office will issue a Business Registration Demand Note around the middle of the month one month before the month in which the Business Registration Renewal Certificate is to take effect. Upon payment of the Demand Note, the Business Registration Certificate will become a valid Business Registration Certificate.
If a Business Registration Demand Note is not received or is lost after the expiry of the Business Registration Certificate and Branch Registration Certificate, the Business Registration Certificate may be exchanged in person or by post.

What should I do if I need to change my address for business registration?

If there is a change of business address, you are required to register the change of address in writing or online within one month after the change of address.
Notify the Business Registration Office in writing and choose to complete the form.IRC 3111AOr you can write your own notification letter with your business registration number and business name,Old and New Business AddressesBoth of them will need to provide proof of the new address, such as the tenancy agreement.

What should I do if I change my business name in the Business Registration?

If the business name has been changed, you need to fill in the form within 1 month after the change.IRC 3110AOr you can write your own notice to the Business Registration Office in writing, clearly stating your business registration number,Old and New Business Names, business address and date of change, etc.

What should I do if I change the nature of my business in the business register?

If the business name has been changed, you need to fill in the form within 1 month after the change.IRBR 193Or you can write your own notice to the Business Registration Office, stating clearly your business registration number and address,Date and details of change of nature of businessetc.

What should I do if I want to cancel my business registration?

Any person who ceases to carry on business or cancels his/her business registration is required to notify the Business Registration Office in writing within 1 month from the date of cessation of business, either by completing Form IRC3113 or by writing your own notification letter, stating clearly in your letter your business registration number/branch registration number, name, address, date of cessation of business, correspondence address after cessation of business, and contact telephone number.

It should also be noted that any company incorporated in Hong Kong under the Companies Ordinance (Cap. 622), whether or not it is in operation, is required to apply for a Business Registration Certificate (BRC) on an annual basis until it is dissolved or deregistered under the Companies Ordinance.

Do I still need to pay the business registration fee after cancelling my business registration certificate?

The payment of business registration fee is calculated on an annual basis, so even if the business closes in the middle of the year, the business registration fee for that year is still payable.

Conclusion

Whether you choose to set up a company or run a business through an online shop, you must apply for a business registration certificate. Having a business registration certificate gives you peace of mind when operating your business. If you have more questions about applying for a business registration or setting up a company, you can contact Lonfon's business consultants to help you solve your problems. Lonfon provides one-stop services for setting up a company so that you can easily solve the problem of your company's business.

Extended reading: "TheDefinition of Business Registration Certificate, its function and its difference from a company in a single article》