After incorporating a business in Hong Kong, you will need to do one more very important thing; registering it with the Business Registration Office and getting a Business Registration Certificate.
The Inland Revenue Department (IRD) requires you to display the certificate at your address all the time. Here is everything that you need to know about BRC.
A Closer Look at Business Registration
Business registration involves registering your company to conduct business in Hong Kong. Once you have received your certificate of incorporation, the Inland Revenue Department will want to get your details, which will culminate with your business getting a Business Registration Certificate.
This registration is done by the Business Registration Office of the Inland Revenue Department, and you need to make an application within the first month of commencing your operations in Hong Kong. The certificate indicates that your business is legitimate, and is normally valid for one year.
Companies that Need Business Registration Certificate
Before going for a business registration certificate, you might be wondering, “Is it all types of businesses that require a business registration certificate?” According to the Hong Kong law, every business operating in the jurisdiction is required to have a business registration certificate from IRD, but there are some exceptions. So, check the list of the businesses that must have a BRC to know if yours is one of them:
- Any organization established with the intention of making a profit.
- Clubs that provide services and facilities for a fee.
- All companies incorporated in Hong Kong.
- Businesses not incorporated in Hong Kong, but are registered under the Hong Kong Companies Ordinance.
- A Hong Kong business with a representative or liaison office in the jurisdiction.
The only businesses that are exempted from the need to have a business registration certificate are those offering services that are approved by charitable organizations, businesses of individual shoe polishers, and enterprises doing market gardening, fishing, and rearing livestock. However, if these companies are incorporated in Hong Kong, they have to get a BRC.
Which is the Best Way to Apply for Business Registration Certificate?
When you setup a company in Hong Kong, the process of getting it up and running can be tedious. Often, most entrepreneurs start by working on different logistics, such as staff, source of raw materials and marketing. With this in mind, it is advisable to consider using an agency to help you register for a business registration certificate. Indeed, working with an agency can also be of great help in the following ways:
- If you contract the agency early enough, it can help you with the business incorporation
- An agency can also act as your company secretary and serve as your Hong Kong address.
- Helping to simplify the process of the business establishment to overcome competition in Hong Kong.
If you are planning to or have already incorporated a business in Hong Kong, it is paramount to get a business registration certificate. Make sure to identify and work with an agency that can help you not just with BRC, but also to simplify other processes, especially during early establishment in Hong Kong. With an expert on your side, you can never go wrong!