A Business Registration Certificate Hong Kong is a certificate given by the IRD to prove the legality of a Hong Kong business. In fact, all types of business entities operating in the form of a sole proprietorship, partnership, corporation, or branch of a foreign company are required to obtain this one-month certificate from commencement. At One IBC, we assist businesses in navigating the process of acquiring their Business Registration Certificate, ensuring compliance and smooth operations from the start.
Importance of a Business Registration Certificate:
- Legal Compliance: It is a legislative requirement within Hong Kong. Further, there are penalties and fines imposed for non-registration.
- Taxation: The certificate is important in tax filing, whereby businesses are obligated to file profits with the IRD.
- Banking: Generally, this is a requirement in opening a business bank account.
- Contracts: Sometimes the certificate can be needed in contracts, agreements, and partnerships for verification of a business in legal status.
- Credibility : It gains confidence in customers and suppliers, among other stakeholders.
How a Business Registration Certificate is obtained:
- Register the Business : First, register the business with the Companies Registry or as a business entity
- Application: Fill in the Business Registration Form and lodge the application form with the documents required.
- Pay Fees: Pay for certificate of registration and levy. The fee payable for registration is based on the period of registration-one or three years.
- Issue: After the approval, it issues the certificate within a couple of days and it should be publicly displayed at the place of business.
Renewal:
Business Registration Certificate Hong Kong is renewable on a yearly basis or once every three years. Non-renewal attracts penalties
Penalties:
If the Business continues to operate without a valid Certificate it is illegal and may attract some fines or even imprisonment. There may also be some penalties if the renewal is late.
In other words, the Hong Kong Business Registration Certificate is an indispensable formality that has to be complied with, in so far as tax purposes and business credibility go in Hong Kong.