Business registration: nature of business and CORP

When a limited company is incorporated, the nature of business on its BR defaults to “CORP” (meaning a body corporate, with no actual business declared yet). Once the company starts operating, it must within 1 month complete form IRBR200 to notify the Inland Revenue Department and declare its actual nature of business.

When a limited company is incorporated, the nature of business on its BR defaults to “CORP”; after operations begin, it must be updated within 1 month by completing IRBR200
Failing to change “CORP” can lead to a fine and affect bank account opening reviews
To change the nature of business after operations have begun, complete IRBR193 and submit it to the Business Registration Office
Regulated industries must first obtain the relevant licence before handling the change of nature of business

What is the “nature of business” on a business registration certificate?

The business registration certificate (BR) application form has a field for “Nature of Business”, which is the official description of the company's main business activities and lets the Inland Revenue Department understand the company's actual mode of operation.

The nature of business is not filled in at will. The Inland Revenue Department provides a “table of codes and descriptions of nature of business”, from which the applicant must select the category that most closely describes the company's business activities.

Further reading: Complete guide to the Hong Kong business registration certificate: definition, fees and the difference from the CI

What does “CORP” mean?

“CORP” is short for “Corporation” (a body corporate). When a company is incorporated in Hong Kong as a Limited company in Hong Kong, the Inland Revenue Department defaults the nature of business on its BR to “CORP”, meaning that the entity is a separate legal person but has not yet declared any specific business activities.

“CORP” is not the final state of the nature of business; it is only the default value when a limited company is incorporated, indicating that the company's legal personality has been established but business has not yet started. Once the company starts actual operations, “CORP” needs to be updated to a specific description of the business.

SetupHK tip: The BR of an unlimited company (sole proprietorship or partnership) will not show “CORP”, because in law an unlimited company is regarded as one with its owner or partners and is not a body corporate. “CORP” only appears on the BR of a limited company.

Does CORP have to be changed?

Yes, it must be changed once the company starts operating. Under Inland Revenue Department rules, once a company starts actual operations, it must within 1 month submit a change notice to the Business Registration Office to declare the company's actual nature of business.

Not changing it has three consequences:

① Risk of a fine or criminal penalty

The Inland Revenue Department deals strictly with non-compliance with the Business Registration Ordinance and failing to report on time can result in a fine.

② Impact on bank account opening

When reviewing an account opening application, a bank looks at the nature of business on the BR. “CORP” indicates that the company has not yet started operating, so a bank may reject the application on that basis or ask for further explanation, slowing down the account opening.

③ Non-compliant records

If the nature of business on the BR does not match actual operations, it may raise questions on review when you later apply for government funding (such as the BUD Fund) or take part in tenders.

Declaring the nature of business for the first time: complete IRBR200

To declare the start of business for the first time after incorporation, a limited company must complete the Notification of Commencement of Business by Corporation (IRBR200).

Steps

Step 1: Look up the nature of business code Go to the Inland Revenue Department website and download the “table of codes and descriptions of nature of business”, then find the code and description that most closely describes the company's business.

Step 2: Complete IRBR200 In the nature of business field of the form, enter the corresponding business code and description, and fill in the business commencement date.

For more details, see Inland Revenue Department: table of codes and descriptions of nature of business

Step 3: Submit to the Business Registration Office You can choose to:

Submit in person: Visit the Business Registration Office on the 2nd floor of Inland Revenue Centre in Kai Tak; processing takes about 1-2 hours
you can post: Send to P.O. Box 29015, Concorde Road Post Office, Kowloon, Hong Kong; takes about 4-7 working days

Note: must be submitted within 1 month after the business starts; late filing carries the corresponding legal liability.

Changing the nature of business after trading has started: complete IRBR193

If the company has already started trading and needs to change the nature of business registered on its BR (including changing from “CORP” to an actual business description), you must complete IRBR193.

It can likewise be submitted in person or by post to the Business Registration Office. Processing time is the same as for IRBR200 (in person about 1–2 hours; by post about 4–7 working days).

3 things to note when stating the nature of business

① Match your actual business

The IRD reviews applications, and if the description of the nature of business clearly does not match actual operations, it may trigger an investigation. When choosing, base it on the company’s main source of income business activities.

② Watch the licence requirements for regulated industries

Some types of business are regulated and need an additional licence before they can operate lawfully, for example:

Catering → food business licence
Travel agency → travel agent licence
Financial services → relevant licence from the SFC or the HKMA

We recommend confirming the licence requirements first, then settling the description of the nature of business, to avoid having to change it again later.

③ Allow time for processing

If the change in the nature of business involves banks, contracts or other commercial activities, we recommend submitting it 1–2 weeks in advance to allow the IRD processing time and avoid disrupting your business.

FAQ

Does the BR of an unlimited company show “CORP”?

No. “CORP” applies only to limited companies. When an unlimited company (sole proprietorship or partnership) applies for a BR, a specific description of the business activities must be entered in the nature of business field from the start; there is no “CORP” default.

Can I carry on trading after submitting the change application?

Yes. Changing the nature of business only updates the registration particulars. As long as the company was trading lawfully before submitting the application, and the new nature of business does not require a licence that has not been obtained, it can continue to operate as normal.

My business covers several industries. How should I state the nature of business?

State it according to the company’s main business (i.e. the main source of income). If there are genuinely several main businesses, you may enter several descriptions, but we recommend consulting a professional adviser to confirm the most suitable way to fill it in, so that the description is not so general that it prompts an IRD enquiry.

Summary

If you have any questions about stating the nature of business or business registration procedures, contact SetupHK and a specialist will help you confirm the most suitable business description and the process to follow. Get in touch now Book a free consultation.