Business Registration Certificate Renewal Tips: How much is the fine for Business Registration Certificate expiry? How to Renew? Attached are 6 tips to avoid BR expiry.
Renewal of Business Registration Certificate is crucial to the legal operation of a Hong Kong company. If you fail to renew your Business Registration Certificate after the due date, you will be liable to a fine of at least HK$5,000 or even imprisonment for one year, so pay attention to the notices issued by the Inland Revenue Department and make the payment in a timely manner to ensure the smooth operation of your business.
Business Registration Certificate (BR) Expiry Date
First of all, we have to know how long an application for a Business Registration Certificate is valid. Generally speaking, the validity period of business registration certificate applications in Hong Kong can be either one year or three years.
A Business Registration Certificate issued for the first time is normally valid for one year from the date of commencement of business.
What are the consequences of an expired Business Registration Certificate?
Generally speaking, you only need to renew your Business Registration Certificate when it expires. However, if you fail to renew your Business Registration Certificate, you may face fines or legal liabilities, so it is advisable to deal with the matter immediately as it is the safest course of action.
Penalty for expired Business Registration Certificate
According to the Hong KongBusiness Registration OrdinanceUnder the provisions of the Business Registration Ordinance, failure to renew the Business Registration Certificate upon its expiry will be regarded as operating without a licence and will be subject to a fine. Normally, failure to renew the Business Registration Certificate within the specified period may result in a fine of HK$$5,000, but the exact amount of fine will depend on the length of the overdue period.
Facing Legal Liability
In addition to fines, late renewal can expose you to legal liability.
Under section 14 of the Business Registration Ordinance, any person who, without reasonable excuse, fails to comply with any requirement of the Ordinance commits an offence!
On conviction, you are liable to a maximum penalty of one year's imprisonment. This means that if you fail to renew your business registration certificate, you may even face legal liability in addition to paying a fine.
Impact on business operations
An expired BR is considered unlicensed and a valid BR is required for many business activities, such as applying for a bank account, applying for a loan or participating in government tenders, etc. An overdue BR causes fines and legal risks, in addition to actually affecting your business operations.
Business Registration Certificate Renewal Tips
Watch out for renewal notices from the Inland Revenue Department.
Normally, the Inland Revenue Department (IRD) will issue a Business Registration Demand Notice to you about one month before the renewal of your Business Registration Certificate.
This notice is very important! It lists the renewal fee, the due date and the method of payment. Once you receive this notice, it is important to keep it in a safe place and pay attention to the payment dates on it.
Payment of business registration certificate renewal fees
After you have received the renewal payment notice issued by the Inland Revenue Department, the next key point is to pay the renewal fee. The Hong Kong Government provides a variety of payment methods which are very convenient:
- QR Code to Payment: Scan the Inland Revenue Department's QR Code with your mobile phone and complete the payment with FPS.
- Convenience Store Payment: Complete payment at convenience stores such as 7-11, Circle K, etc.
- Payment at Post Office: Payment by cash, cheque or EPS at Post Office.
- Payment at the Inland Revenue Department: Payment is made directly at the Inland Revenue Department.
Lafont Business Consultants reminds you that whichever method you choose, it is important to keep proof of payment, such as receipts, bank transaction records or postal certificates, which will come in handy if you have any problems in the future.
Payment will be considered as a valid Business Registration Certificate
Many newbie business owners may wonder, "I paid my dues, when will I get my new business registration?"
In fact, as long as you pay the renewal fee for your Business Registration Certificate on time, your Business Registration Certificate will be deemed to have been validly renewed!
You will not receive a new paper Business Registration Certificate, but a record will be automatically updated in the Inland Revenue Department's system to show that you have completed your renewal.
Six Tips to Avoid Expired Business Registration Certificates
Preset Alert System
Often times, business registration certificates expire because of "forgetfulness"! The most effective way is to set up a stable reminder system. You can set up a mobile phone calendar reminder or financial software integration, as long as you can get a reminder before the renewal date.
Leveraging online management
Making good use of IRD's e-services can significantly reduce the risk of overdue notices. e-Notices are more timely and stable than physical mail, effectively avoiding missing important information due to change of address or loss of mail.
Understanding the Renewal Process
A clear understanding of the business registration certificate renewal process will give you more control over the process, so you don't have to scramble around because of an impromptu event or because you didn't receive a renewal notice.
Ask for Professional Advice
If you are unfamiliar with administrative matters at the early stage of business start-up, timely consultation with professionals (e.g. accountants, company secretaries) can effectively avoid mistakes or penalties due to unfamiliarity with the rules and regulations.
Timely processing of notifications
When you receive a renewal notice for your business registration certificate, it's best to process it without delay. Establishing a clear process for handling receipt will ensure that you don't miss important deadlines and avoid unnecessary fines.
Ensure that the registered address is valid
Renewal notices will be sent to the company's registered business address, so it is important to ensure that the address is valid and that correspondence is received. If there is a change of address, be sure to update your information with the Business Registration Office within 1 month by preparing the necessary documents.
Frequently Asked Questions
Can I change the renewal period of my Business Registration Certificate?
Yes! There are two options for the renewal period of Hong Kong Business Registration Certificate (HKBRC), namely "one-year" and "three-year", which can be changed according to the needs of enterprises.
If you wish to change from a one-year to a three-year term, or from a three-year to a one-year term, you must apply at least one month before the expiry date of your existing Business Registration Certificate and complete the relevant declaration form.
What should I do if I have not received or lost the Business Registration Certificate Renewal Notice?
If you have not received or lost the original Business Registration Certificate Renewal Notice, don't worry. You can take the initiative to contact the Business Registration Office of the Inland Revenue Department to enquire about the renewal status, or check the renewal status and download the "Copy of Business Registration Demand Note" through your eTAX account, and then make the payment on time.
How can I get a replacement Business Registration Certificate if my BR is lost?
If your Business Registration Certificate (BR) is lost inadvertently, you can apply to the Business Registration Office for a replacement. This usually involves completing an application form and paying a small administrative fee. You can also print out a copy of your latest BR yourself by logging into your eTax account.
Is it relevant that the Business Registration Certificate has expired after the company has closed down?
Relevance! The company has to complete and apply for a notice of cancellation to wind up its business. The business registration fee and levy paid will not be reimbursed, but the business registration certificate has to be valid until the company is formally dissolved or the business registration is cancelled, so it is necessary toCancellation of Business Registration。
What happens if I fail to pay the business registration fee? Will the registration card be cancelled?
Failure to pay your business registration fee will result in a penalty, and the longer you are overdue, the higher the penalty may be. The Inland Revenue Department will not cancel your registration certificate outright, but it will treat it as overdue and recover the outstanding amount and penalties. Serious overdue payments may result in legal action.
Professional Business Registration Agent Service: Langfeng Business Consultants
If you want to save yourself the hassle of dealing with business registration certificate renewals and seek professional assistance to ensure compliance, Lafont Business Consulting is your trusted choice.
Since our establishment in 2014, we have assisted many clients to smoothly handle various Hong Kong company affairs, with rich experience and well-established processes, which are highly recognised by our clients. Our team upholds the highest standards in the industry to provide you with:
- Professional and reliable service: From document review, to payment reminders, to payment of fees, we ensure accuracy so that your Business Registration Certificate is always valid.
- All-encompassing one-stop programme: Covering everything from renewal reminders, IRS notification processing, and even change of address reminders, you'll never have to worry about a thing.
- Efficiency and timeliness: Quick response and immediate reply help you to complete the renewal process in the shortest possible time and avoid any risk of overdue payment.
Whether you are a small or medium-sized business owner, or an individual entrepreneur, you only need to provide the basic information, we can help you easily complete the Hong Kong company set up the big and small things, whether it is tax returns, company registration and other matters can be handed over to us, to help you focus on the future development of the worry-free!
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