What is the nature of business on the Business Registration Certificate (BR)? What is CORP and what is it? 3 minutes to read and understand Nature of Business Points (with change instruction)
The "Nature of Business" field on the Business Registration Certificate is an official description of the company's main business activities and is intended to provide the Inland Revenue Department with an understanding of its mode of operation.
What is the nature of the business on the Business Registration Certificate?
Nature of Business in BR
A Business Registration Certificate (BR) is a licence required to operate a business in Hong Kong. On the BR application form, there is a column called "Nature of Business", which briefly describes what type of business activities your company is mainly engaged in.
This field is an official description of your company's scope of business and is important for the Inland Revenue Department to understand your company's mode of operation.
What does CORP mean?
"CORP" is an abbreviation of "Corporation", meaning "corporation" or "company".
When your company is registered as a Limited Company, the Inland Revenue Department (IRD) will usually preset the nature of business as "CORP" on your Business Registration Certificate. This means that the entity is a separate legal entity and not a sole proprietorship or partnership.
Note: If you have already started your business but find that the business nature column of the Business Registration Certificate still reads "CORP", you need to pay more attention to it because you may be sued by the Inland Revenue Department!
Do I have to change the nature of my business to CORP?
Submit changes within one month of commencement of operation
A "CORP" merely indicates that a company is a form of incorporation without specifying the actual business activities it engages in. According toInland Revenue Department of Hong KongAs a result, you are required to submit a Notice of Change to the Inland Revenue Department (IRD) within one month after your company has commenced actual operation, specifying the actual nature of the business of the reporting company.
Facing Fines and Penalties
If a company fails to submit an application for change, you will need to face fines or even criminal penalties. The Inland Revenue Department (IRD) takes a strict approach to non-compliance with the Business Registration Ordinance.
Apart from fines and penalties, the bank may also reject your application to open an account because the bank will target the person who opens the account for scrutiny. However, CORP means that the company has not yet commenced operation, which will affect the bank's assessment of risk and compliance considerations, so remember to submit an application for change to avoid unnecessary trouble.
What is the nature of BR business? Business Registration Notice Start-up Tutorial
Enquiry on the nature of business
It is important to clearly indicate the nature of business of the company when completing the relevant forms for business registration! You can check the "Business Registration Forms" provided by the Hong Kong Government.Table of Codes and Descriptions of Business Nature" to find codes and descriptions that match your company's business.
Choosing the right nature of business
Based on the actual operations of the company, select the category that best describes the business activities of the company from the categories of business nature provided by the Government.
Fill in the Notice of Commencement of Incorporated Business (IRBR200)
Once you have found the category that matches your company's business activities, fill in the form indicated in the chart below.
Submission to the Business Registration Office
After completing the form and confirming that the information is correct, you can submit it to the Business Registration Office, either in person or by post.
How do I change the nature of my business if I am already in business?
Notify the Inland Revenue Department by completing form IRBR193.
If you want to change the nature of business on the Business Registration Certificate after the company has already started business, you have to fill in the IRBR193 and submit it to the Inland Revenue Department. This is a special form for companies to change the information they have already registered, and you can just submit the same form to the Business Registration Office after you have filled in the IRBR193.
Notes on Change of Nature of Business Application
Ensure that changes are in line with the company's business
When submitting an application for a change of business nature, it is important to make sure that the new business nature chosen is fully compatible with the company's actual business activities.
This is because the Inland Revenue Department (IRD) will scrutinise the application and if the changed nature of business is not in line with your company's actual operation, IRD will intervene to investigate and you may face other legal liabilities.
Pay attention to whether the industry needs to apply for a licence
Certain specific industries need to apply for additional licences or permits in order to operate legally in Hong Kong, for example, the catering industry needs a food licence, travel agents need a travel agent licence, and the financial services industry needs a financial licence, and so on.
When changing the nature of business, it is important to know whether the new nature of business is a regulated industry. It is advisable to apply for a licence before applying for a change of business nature to ensure that the company operates under a legal framework.
Allow time for declaration and approval
The Inland Revenue Department requires a certain amount of time to process an application for a change in the nature of business. It is advisable to allow sufficient time in advance for the filing and approval of the application, especially if the change in the nature of business will affect the company's other operational activities (banking business or signing of contracts, etc.). Avoid delaying business progress by submitting the application only when immediate effect is required.
Frequently Asked Questions
Will there be a "CORP" on the Business Registration Certificate of an unlimited company?
No! "CORP" refers to a limited company, which is an entity with the status of a separate legal entity.
Unlimited companies are legally regarded as one and the same as their proprietors or partners and are not in the form of a corporation. Therefore, the nature of business on the business registration certificate will not show "CORP", but will list out its specific business activities clearly.
How long does it take for an application to be approved after submission?
It will take about 1-2 hours if it is done at the counter, and 4-7 working days if it is done by mail or online.
The above timeframes are based on complete and correct information, so it is important to check whether the information is correct before applying.
Can I continue to operate during the application period?
Yes! Changing the nature of business is primarily for the purpose of updating business registration information to ensure consistency and compliance between the company's registration information and actual operations.
As long as the company was operating legally before the submission of the application and the nature of the new business does not involve the need to apply for an additional licence which has not yet been obtained, the company may continue to operate.
How to fill in the form if you are not sure about the nature of your business? Langfeng Business Consultancy provides professional company formation services.
If you are not sure how to fill in the business nature on the business registration certificate, or have questions about company registration, tax planning and other early business start-up matters, [Longfeng Business Consultancy] can provide you with professional assistance, we have a wealth of experience, according to the specific content of your business, to assist you in choosing and declaring the correct nature of business. Click the Whatsapp button on the bottom right to get help with your business startup!
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