Definition of Business Registration Certificate, its function and its difference from a company in a single article

Definition of Business Registration Certificate, its function and its difference from a company in a single article

It is required by law to apply for a Business Registration Certificate (BRC) to operate a business in Hong Kong. This article will introduce in detail the definition of BRC, the businesses that need to be processed, the BRC number, and the difference between BRC and registered company.

What is a Business Registration Certificate?

Business Registration (BR), according to the Business Registration Ordinance of Hong Kong, persons carrying on business in Hong Kong are required to apply for business registration within one month of commencing business. In addition, the Inland Revenue Department (IRD) has clearly pointed out thatAll business activities for profit, in whatever form, are required to apply for a Business Registration Certificate in a timely manner.

In other words, the Business Registration Certificate BR is a necessary registration procedure to confirm that a company or an individual needs to carry out a profit-making project. No matter whether you are operating a physical shop, an online shop, or a freelance Freelancer, you need to apply for a Business Registration Certificate, which proves that you are operating legally, and that you need to renew the certificate on a regular basis during the course of your operation.

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Businesses subject to business registration

According to the Inland Revenue Department (IRD), the businesses that need to be discerned include:

To engage in any form of business, commerce, craft, profession, occupation or other activity, whether conducted physically or through the Internet, for profit;

A club that provides facilities, services and exclusive use of premises for social or recreational activities for its members;

All companies incorporated in Hong Kong with limited liability under the Companies Ordinance or companies not incorporated in Hong Kong but having a place of business in Hong Kong, irrespective of whether or not they actually carry on business in Hong Kong；

all non-Hong Kong incorporated limited companies which have a representative office or liaison office in Hong Kong, or which lease their properties in Hong Kong, whether or not they have established a place of business in Hong Kong; and

All limited partnerships registered in Hong Kong under the LLPs Ordinance, irrespective of whether they actually carry on business in Hong Kong.

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What is the business registration number?

A Business Registration Number is issued by the Business Registration Office (BRO) and is used for a variety of purposes, including filing tax returns, tax refunds and opening company bank accounts. When a business operator applies to the Business Registration Office and pays the relevant fee, he/she will be issued with a Business Registration Certificate, which contains a Business Registration Number, if his/her application is successful. The Business Registration Certificate number can be used as a tax identification number in the form of XXXXXXXXXX-&&&&-&&&-&&-&, where the first 8 digits represent the business registration number, and the next digits and letters represent the month and year the Business Registration Certificate is effective, as well as other information required by the Inland Revenue Department.

 

What is the business registration number?
Business Registration Certificate.

Differences between Business Registration Certificate and Company Registration

The Certificate of Incorporation (CI), which is handled exclusively by the Companies Registry, gives a company a separate legal entity with its own financial and legal liabilities and a company registration number through the formation of a local limited company.

A Business Registration Certificate can be held by an individual or a company, and is the number under which you legally operate your business and pay taxes, whereas a company registration number is the same as a company's birth certificate, and theIt is not necessary to apply for a company to have a Business Registration Certificate, but it is necessary to apply for a Business Registration Certificate once the company starts to operate.。

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Conclusion

If you have any questions about Business Registration Certificate or registering a Hong Kong company, please feel free to contact our Business Services team.

You don't have to go it alone in your business journey! With our professional knowledge and experience, we provide you with one-stop business consultancy services to help you realise your business blueprint!

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