Keeping your business registration up to date is key to staying on track and compliant in the hustle of Hong Kong’s vibrant scene. As you journey through this ever-evolving landscape, renewing your business registration number becomes a natural part of the process.
To lighten your load, today’s article shall offer a quick guide, including practical tips to make the renewal process as smooth as possible. With a bit of know-how and preparation, you’ll be ready to tackle this task with confidence and ease!
Overview of Hong Kong business registration renewal
Business Registration renewal in Hong Kong is a critical process that all businesses operating within the region must complete to remain compliant with local laws and regulations.
This process involves renewing the Business Registration Certificate (BRC), which is mandatory for conducting business in Hong Kong.
The Business Registration Certificate (BRC) serves as an official record confirming a business’s identity with the government. It encompasses important details such as the business name, registration number, business address, and the date of registration.
The BRC must be renewed periodically, either annually or every three years, depending on the duration chosen by the business at the time of registration or previous renewal.
Furthermore, when you renew your business registration in Hong Kong, a new certificate will be issued each time with updated information.
Sample of the Hong Kong Business Registration Certificate
Demand note for business registration renewal
To renew the business registration certificate, your company must receive a business registration renewal demand note. In particular, around the middle of the month preceding the commencing month of the renewal’s valid period, the Business Registration Office will send the demand note to the company’s registered address.
This notice serves as a reminder and provides instructions for renewing the BRC, specifying the following information:
- Valid period: The timeframe during which the registration remains active and legally valid, including the date of commencement and the expiry date.
- Renewal fee and levy: This is the fee required for renewal, which may vary depending on whether the business opts for a one-year or three-year certificate.
Sample of the Business Registration Renewal Demand Note (source: https://www.ird.gov.hk/)
Upon receiving the demand notice, businesses need to act promptly to renew their BRC before its expiry date. The renewal can typically be done online, by post, or in person at the Business Registration Office.
Failing to renew the registration on time can lead to various consequences, including a penalty fee of HK$300 (1-year renewal) or HK$900 (3-year renewal), court proceedings, or even deregistration. To avoid such issues, you must fulfill the criteria promptly.
How to renew business registration in Hong Kong
The process of renewing your Hong Kong business registration typically involves a series of steps below. Let us navigate through each step together!
Case 1: The renewal demand note arrives on schedule
Step 1: Receive a demand note from the authority
Before the commencement of the renewed Business Registration Certificate (BRC), Hong Kong businesses can expect to receive a renewal demand note from the Business Registration Office.
Typically, this notification arrives around the midpoint of the preceding month. For example, if your new certificate begins in July, you’ll likely get the demand note around mid-June. This is to give you enough time to get everything ready for the renewal process.
Step 2: Pay the necessary fees
The next step is to submit a payment for the mandatory renewing fee. From 1 April 2024, the business registration fee for enterprises in Hong Kong is set at:
- For a one-year certificate: HK$2,200
- For a three-year certificate: HK$5,870 (5,720 for the fee and 150 for the levy)
Upon completion of payment, the demand note simply transforms into the new valid Business Registration Certificate of your company.
What if I don’t receive my company’s demand note?
If you fail to receive the demand note for your company’s renewal, please notify the Commissioner of the Inland Revenue Department in writing. This must be made within 1 month of the expiration of your current BRC.
Case 2: The demand note is not received on time or misplaced
In cases where the demand note isn’t received following the expiration of the Business Registration Certificate, or if the note goes missing, you can still renew business registration in Hong Kong through the listed alternative methods:
For in-person renewal
A representative of your business should visit the Business Registration Office and request a new demand note. Note that bringing along the old Business Registration Certificate and paying the renewing fees are also required.
Additionally, if there are changes to the company address that haven’t been updated with the relevant authority, it’s essential to also complete form IRC 3111A to notify the change.
For postal renewal
For renewing by post, you’ll need to send a copy of your old Business Registration Certificate along with a crossed cheque made payable to “The Government of the Hong Kong Special Administrative Region” to the Business Registration Office.
Once the authority has received the documents, they shall send your updated Business Registration Certificate to your registered address.
Important note
If your registered business address has changed, don’t forget to inform the Office about your business registration number, business name, old and new addresses, and the date of the change. This will help the Office update their records and send the new certificate to the correct location.
Post-renewal responsibilities to keep in mind
What are the post-renewal commitments you must make after renewing your Hong Kong business registration? Here are a few helpful points to take notes for your company.
Update business records
You must make certain that all internal and external records reflect your new Hong Kong Business Registration renewal. This includes updating company documents, business contracts, and any correspondence with clients or suppliers.
Renew relevant licenses and permits
If your business requires any licenses or permits to operate, ensure that these are kept up-to-date and renewed as necessary. Please be attentive to renew your license at least 1 month before it expires to avoid fines or disruptions to your business activities.
Comply with filing requirements
Meeting reporting requirements involves fulfilling obligations such as filing annual returns, profit tax filing, auditing, and so on. For instance, the annual return must be filed within 42 days from the company’s anniversary date.
Additionally, the company is expected to hold an Annual General Meeting (AGM). Hence, you should also maintain accurate financial records (e.g. income statements, balance sheets, tax records)
Monitor renewal deadlines
Stay proactive by monitoring renewal deadlines for your business registration and other regulatory requirements. You can set reminders or use a tracking system for timely renewals and ongoing compliance.
By keeping track of these tasks, you can navigate the post-renewal phase with confidence and keep your business running smoothly in Hong Kong.
To wrap up
In conclusion, business registration renewal is a vital process in Hong Kong. Thus, as a mandatory requirement, it has to be met for enterprises to maintain legal compliance and operational continuity.
For that reason, you should consider these tasks as vital milestones in your Hong Kong entrepreneurship. Each update, renewal, and record-keeping phase is a stepping stone toward your business’s continued success and growth.
If you’re planning to launch your business in Hong Kong and have inquiries about conducting business here, simply reach out to us today! Whether via email service@bbcincorp.com or chatbox, our support team is here to assist you.
Disclaimer: While BBCIncorp strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact BBCIncorp’s customer services for advice on your specific cases.
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