Hong Kong Business Registration Number - Are you starting a business in Hong Kong? You'll need to get familiar with the Hong Kong business registration number. This unique identifier is a must-have for any company operating in the bustling city-state. It's not just a formality, it has a big impact on how you run your business and deal with local authorities.
In this guide, we'll walk you through everything you need to know about the Hong Kong business registration number.
What is a Hong Kong Business Registration Number?
A Hong Kong business registration number (BRN) is a unique 8-digit identifier assigned to businesses operating in Hong Kong by the Inland Revenue Department (IRD). This number serves as a crucial element for regulatory and tax purposes.
The BRN acts as your tax identification number (TIN) and has a significant impact on your business operations in Hong Kong.
Starting from December 27, 2023, the BRN has been replaced by the Unique Business Identifier (UBI). However, existing BRNs will automatically transition to UBIs without requiring re-registration or obtaining a new number. This change aims to streamline business identification processes in Hong Kong.
Format and structure
The format of a Hong Kong business registration number follows a specific structure: 12345678-XXX-XX-XX-X. The first eight digits represent the actual BRN, while the remaining characters serve additional purposes.
You can find this number in the middle of your Business Registration Certificate under the heading "Certificate No.".
To illustrate, a sample BRN might look like this:
70569713-###-##-#-#. This unique sequence helps identify your business for various official purposes, including tax-related matters and interactions with government agencies.
Difference from Company Registration Number
It's important to understand that the Hong Kong business registration number is distinct from the Company Registration Number (CRN). While both are essential for businesses in Hong Kong, they serve different purposes and are issued by separate government departments.
How to take Business to the Next Level
The BRN, issued by the Inland Revenue Department, functions primarily as a tax ID for businesses. On the other hand, the CRN, provided by the Companies Registry, legally identifies incorporated companies in Hong Kong.
The CRN is a seven-digit number that appears on the top-left corner of your Certificate of Incorporation.
Who Needs a Business Registration Number?
In Hong Kong, obtaining a business registration number is a legal requirement for most businesses operating in the city. This unique identifier is crucial for regulatory compliance and tax purposes.
Types of businesses required to register
The Hong Kong business registration number is mandatory for a wide range of business entities. This includes sole proprietorships, partnerships, limited liability companies, and even non-Hong Kong companies with a business presence in the city. Freelancers and self-employed individuals are also required to obtain a BRN.
Any business activity performed with the intention of generating profits falls under this requirement. This encompasses all forms of trade, commerce, craftsmanship, professions, and even clubs that provide facilities and services to members.
Companies incorporated in Hong Kong or registered under the Hong Kong Companies Ordinance must obtain a BRN, regardless of whether they operate solely within Hong Kong or across various jurisdictions.
Exemptions from registration
While most businesses need a Hong Kong business registration number, there are some exceptions. Businesses that operate without generating profits or remain inactive are not obligated to acquire a BRN.
Additionally, individuals who only hold an office position are not considered as conducting business and don't require registration.
Other exempted businesses include:
- Approved charitable institutions
- Agricultural activities, market gardening, livestock breeding, and fishing (excluding companies incorporated in Hong Kong)
- Bootblack businesses
- Licensed hawkers (except those operating inside buildings)
- Penalties for non-compliance
Operating without a Hong Kong business registration number is a serious offense. Failing to register your business violates the Business Registration Ordinance (BRO) and can result in severe penalties. The consequences of non-compliance include a fine of up to HKD 39,061.71 and potential imprisonment for up to one year.
To avoid these penalties, businesses must submit their registration applications within one month of starting operations. If you apply for business registration more than 12 months after commencing business, you'll be required to pay not only the current year's registration fee and levy but also any applicable fees and levies for previous years.
How to Obtain a Business Registration Number
To get a Hong Kong business registration number, you have several options available. The process has been streamlined to make it easier for businesses to register and obtain their unique identifier.
One-stop company and business registration service
The Companies Registry and the Inland Revenue Department have collaborated to offer a convenient one-stop service for company incorporation and business registration. This service allows you to submit a single application for both processes simultaneously.
When you apply for company incorporation or registration of a non-Hong Kong company, you'll automatically apply for business registration at the same time.
You can submit your application online through the e-Registry Portal or in person at the Business Registration Office. For online submissions, you'll need to complete the necessary forms and pay the required fees electronically.
If you prefer to apply in person, you'll submit your application and fees directly to the Business Registration Office.
Direct application with Inland Revenue Department
If you're not incorporating a company, you can apply for a Hong Kong business registration number directly with the Inland Revenue Department.
This option is suitable for sole proprietorships, partnerships, and other business types not covered by the one-stop service.
Required documents and fees
The documents and fees required for obtaining a Hong Kong business registration number vary depending on your business type. Generally, you'll need to:
- Complete the appropriate application form (Form 1(a) for individuals, Form 1(b) for body corporates, Form 1(c) for partnerships, etc.)
- Pay the business registration fee and levy
- Provide proof of identity (e.g., Hong Kong identity card, passport, or Certificate of Incorporation)
For local companies, you'll need to submit an incorporation form (Form NNC1 or NNC1G), a copy of the company's Articles of Association, and a Notice to Business Registration Office (IRBR1).
In conclusion, understanding the intricacies of the Hong Kong Business Registration Number is vital for any entrepreneur looking to establish a presence in this thriving business hub.
By following the appropriate procedures and fulfilling the necessary requirements, you can efficiently secure your BRN and embark on your business journey in Hong Kong.
