10+ Must-Know Common Questions About BR Business Registration Certificate
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.
- All businesses in Hong Kong for profit must apply for a business registration certificate within 1 month of starting operations.
- Exemption from payment ≠ exemption from application; qualifying unlimited companies must still apply for BR before applying for exemption.
- If there are changes to business information (address, name, nature), written notification must be sent to the Business Registration Office within 1 month.
- After ceasing operations, cancellation of registration must be processed; limited companies must hold a valid BR until officially dissolved.
What are the consequences of not submitting the 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-shining businesses; and various street vendor businesses that require a license under the "Vending Regulations" (excluding those operating within buildings).
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"IRBR61C"The Government will apply for exemption of the business registration fee and levy by means of GovHK or through GovHK:
Application information must include the average monthly amount for the 6 months prior to submission; exemptions will only be granted at the time of application and are valid until the expiration of the "business registration certificate granting exemption," for a period of 1 year.
Thereafter, exemption applications must be resubmitted annually based on the exemption conditions and application procedures in effect at that time.
Do online businesses like IG Shop need to apply for a business registration certificate?
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 changed, it must be notified in writing to the Business Registration Office within 1 month after the change, by choosing to fill out form IRC 3110A or writing a notice, 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.
What procedures are required to change partners?
Any partner joining or leaving must fill out form IRBR64 to notify the Business Registration Office within 1 month, attaching a copy of the new partner's ID card or passport, and signed by both new and old partners. Note: The company structure changes after a sole proprietor joins as a partner, and the BR number will also change.
After changing the owner, can the original BR number be retained?
Yes, you can use the "add first, withdraw later" method: submit two IRBR64 forms simultaneously, filling in the two dates—first add the new owner, then withdraw the old owner, to retain the original BR number.
How to handle overdue business registration fee payments?
The tax office will regard overdue payments as tax arrears and will pursue the debts and penalties. Long-term arrears may lead to legal action, affecting business and personal credit records; it is recommended to make immediate payment upon discovering overdue amounts.
What should I do if I lose my business registration certificate?
You can visit the Business Registration Office in person or mail an application for reissuance, or log into eTAX to check electronic records and reprint. A reissuance fee is required for paper BR.
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.
If you have any questions about business registration, feel free to contact Longfeng Business Consultants.Make an appointment for a free consultation now.
Extended Reading
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