Hong Kong is known for its bustling business and financial landscape, making it an attractive destination for entrepreneurs and businesses looking to expand their operations. As a result, it is essential for any business operating in Hong Kong to have a business registration number (BRN). In this article, we will explore what a business registration number is, the key differences between BRN and CRN, the benefits of having a business registration number, and how to get one in Hong Kong.
What Is A Business Registration Number?
A business registration number is a unique identifier assigned to businesses that are registered in Hong Kong. When a business is registered with the Hong Kong Companies Registry, it is assigned a BRN, which is used for various purposes, including tax reporting, registration of business licenses, and opening bank accounts.
The Business Registration Ordinance (BRO) governs the registration of businesses in Hong Kong and requires all businesses operating in the city to obtain a business registration certificate (BRC) and a BRN. The BRC certifies that a business has been registered with the Hong Kong Companies Registry, and the BRN is the unique identifier assigned to the business.
Business Registration Number Sample Format
A business registration number in Hong Kong is a seven-digit number that includes letters and numbers. The format of the BRN is as follows: XXXXXXX.
Key Differences between BRN and CRN
A common source of confusion for many business owners is the difference between a BRN and a company registration number (CRN). A CRN is a unique identifier assigned to a company registered with the Hong Kong Companies Registry, whereas a BRN is assigned to any business operating in Hong Kong, regardless of its legal structure.
In other words, a CRN is only assigned to a limited company, whereas a BRN is assigned to all businesses operating in Hong Kong, including sole proprietorships, partnerships, and branches of overseas companies.
Another key difference between a BRN and a CRN is that a BRN is used primarily for tax and licensing purposes, whereas a CRN is used to identify a company in legal documents and contracts.
Benefits of Having a Business Registration Number in Hong Kong
Having a business registration number in Hong Kong is essential for any business operating in the city. Here are some of the key benefits of having a BRN:
- Comply with the law – The BRO requires all businesses operating in Hong Kong to obtain a BRC and a BRN. Fines and penalties may apply if these conditions are not met.
- Tax reporting – A BRN is used for tax reporting purposes, including the filing of annual tax returns and the payment of taxes.
- Register for business licenses – Many businesses in Hong Kong require licenses to operate legally. A BRN is required to register for these licenses.
- Open bank accounts – A BRN is required to open a bank account in Hong Kong, which is essential for businesses operating in the city.
- Build trust with customers – Having a BRN can help build trust with customers, as it shows that the business is registered and operating legally in Hong Kong.
How to Get a Business Registration Number in Hong Kong?
Obtaining a business registration number in Hong Kong is a straightforward process. Here are the steps involved:
- Register your business – The first step is to register your business with the Hong Kong Companies Registry. The registration process varies depending on the type of business you are starting.
- Obtain a business registration certificate – Once your business is registered, you will need to obtain a business registration certificate (BRC) from the Inland Revenue Department. This certificate certifies that your business is registered and provides information such as your business name, address, and business registration number.
- Obtain a business registration number – Your business registration number will be assigned to you when you obtain your BRC from the Inland Revenue Department.
In summary, a business registration number is a unique identifier assigned to businesses operating in Hong Kong. Obtaining a BRN is essential for complying with the law, tax reporting, registering for business licenses, opening bank accounts, and building trust with customers. To obtain a BRN, you must register your business with the Hong Kong Companies Registry, obtain a business registration certificate from the Inland Revenue Department, and your BRN will be assigned to you.
