Abstract: The validity period of the business registration certificate is 1 year, in the business operation, you may encounter the problem of changing the name, changing the nature of the business, changing the address or under what circumstances can you be exempted from paying the registration fee, etc., this article will summarize the frequently asked questions about the business registration certificate.
What will happen if I do not submit my Business Registration Certificate application on time?
According to the Inland Revenue Department, failure to submit an application for a Business Registration Certificate on time is punishable by a fine of $5,000 and imprisonment for one year.
Business registration is payable for any person who applies for business more than 12 months after commencement of business:
(a) Business registration fees and levies for the current year; and
(b) Business registration fees and levies in previous years under section 7 (3) of the Business Registration Ordinance.
Click on the Business Registration Certificate to learn about the definition and role.
Is there a business exempt from registration?
All business activities for the purpose of profit, regardless of form, are required to apply for a business registration certificate in a timely manner, but there are exceptions:
charities (charities that are subject to profits tax on business or profits derived from 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);
the business of shining shoes; and
All kinds of hawker businesses that require a licence under the Hawker Regulation (except those operating in buildings).
Business registration of the above businesses is exempt from applying for a Business Registration Certificate if eligible.
Under what conditions are business registration fees and levies waived?
The average monthly business volume of the business that provides services to earn profit does not exceed $10,000;
The average monthly turnover of other businesses does not exceed $30,000;
You can apply for exemption from business registration fee and levy in person or by post in writing Form 3 or through GovHK:
The application information needs to be provided, the average monthly amount for the 6 months prior to the submission of the application, the exemption will only be granted at the time of application, and will be valid for a period of 1 year until the expiry of the validity period of the Business Registration Certificate indicating the granting of the exemption. Thereafter, a new exemption application must be submitted annually in accordance with the exemption conditions and application procedures then in force.
Do online businesses such as IG shop need to apply for a Business Registration Certificate?
This question is often asked, can an online store/IG shop run by a small book with a monthly business volume of less than $30,000 not apply for a business registration certificate?
The Inland Revenue Department has also clarified that online businesses are also subject to the business registration requirements, and small business operators eligible to apply for exemption from paying business registration fees and levies may apply for exemption but are still required to apply for business registration.
In other words, the exemption of business registration fees is based on applying for a valid business registration certificate before applying for exemption, and it is not that merchants such as online shops/IG shops do not need to apply for a business registration certificate if they themselves believe that their turnover is exempt from paying business registration fees and levies.
How to renew and renew the Business Registration Certificate
For registered business, the Business Registration Office will issue a Business Registration Payment Notice approximately one month before the effective month of the renewal of the Business Registration Certificate, and upon payment, the Notice of Payment will become a valid Business Registration Certificate.
If you do not receive the Business Registration Notice of Payment or lose the Payment Notice after the expiry of the validity period of the Business Registration Certificate and the Branch Registration Certificate, you can replace the Business Registration Certificate in person or by post.
What should I do if I want to change my address in my business registration?
If there is a change of business address, the change of address needs to be made in writing or online registration within one month after the change of address.
Notify the Business Registration Office in writing and choose to complete Form IRC 3111A or write your own notice by stating your business registration number, business name, old and new business address and date of change, etc., both of which require proof of new address, such as a tenancy agreement.
What should I do if my business name is changed in business registration?
If your business name is already within 1 month after the change, you can choose to fill in Form IRC 3110A or write a notice by notifying the Business Registration Office in writing, clearly stating your business registration number, old and new business name, business address and date of change, etc.
What should I do if the nature of the business registration changes?
If your business name is already within 1 month of the change, you can choose to fill in Form IRBR 193 or write a notice by writing to the Business Registration Office, clearly stating your business registration number, address, date and details of the change in the nature of your business, etc.
What should I do if I want to cancel my business registration?
Any person who ceases business or terminates any branch business must notify the Business Registration Office in writing within 1 month from the closing date, optionally by completing Form IRC3113 or writing a notice by himself, clearly stating your Business Registration Number/Branch Registration Number, name, address, closing date, correspondence address and contact telephone number after closure within 1 month from the closing date.
It should also be noted that any company incorporated in Hong Kong under the Companies Ordinance (Cap. 622), whether in operation or not, is required to apply for a Business Registration Certificate every year until the company is dissolved or deregistered under the Companies Ordinance.
Do I still need to pay the business registration fee after the cancellation of the Business Registration Certificate?
Payment of the business registration fee is calculated on an annual basis, so even if the business registration fee is completed in the middle of the year, the business registration fee for that year still needs to be paid.
Whether you choose to open a company or operate a business in the form of an online store, you must apply for a business registration certificate, having a business registration certificate can make yourself or the company operate with peace of mind, if you have more questions about applying for business registration or opening a company, you can contact Langfeng business consultants to solve your problems, Langfeng provides one-stop company opening services for you to easily solve the company’s business.