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Your Licence Checklist Before You Register a Company in Hong Kong

Hong Kong’s business landscape is full of opportunities, but success takes more than a catchy name and completed forms. One critical step often missed is understanding which licences your business needs to operate smoothly from day one.

Every industry has its own set of rules. Whether you’re preparing to register a company in Hong Kong for a consultancy, retail shop, or restaurant, knowing these requirements ahead of time saves you time, prevents setbacks, and keeps your operations fully compliant.

This guide breaks down the essentials – from securing your Business Registration Certificate to opening a business account in Hong Kong – helping you build your venture without the admin overwhelm.

Business Registration Basics

Common Business Licences in Hong Kong

Smart Startup Solutions for HK Entrepreneurs

Business Registration Basics

Before your company can operate in Hong Kong, securing a Business Registration Certificate (BRC) is non-negotiable. Issued by the Inland Revenue Department (IRD), this document proves your company’s legal status and shows you’re fully aligned with local compliance standards.

As of 1 April 2025, the BRC carries an annual fee of HK$2,200 and must be renewed every year to keep your company active. The BRC is a vital step that ensures your venture meets all statutory requirements right from the start.

You’ll need to obtain your certificate immediately after incorporation and before carrying out any business activities. Missing or delaying your BRC renewal can lead to fines of up to HK$5,000, and repeated non-compliance might even result in your operations being suspended.

Common Business Licences in Hong Kong

Identifying the right business licence is essential for keeping your Hong Kong company compliant and operational from the start. The type of licence you need depends on your industry and activities. Here’s a concise guide to the most common licences in the region :

Employment and Recruitment – Issued by the Labour Department to ensure hiring practices comply with local labour laws.

Travel Agencies – Managed by the Travel Agents Registry for businesses offering travel-related services like booking and ticketing.

Trading – Required for importing and exporting goods. Specific licences include:

Dutiable goods and chemicals – Customs and Excise Department for items like alcohol, tobacco, oils, and certain chemicals.

Animals and birds – Agriculture, Fisheries and Conservation Department for live imports and exports.

Foodstuffs – Centre for Food Safety for all food imports and exports.

Textiles – Trade and Industry Department for textile products.

Pharmaceuticals and dangerous drugs – Department of Health’s Pharmaceuticals Import/Export Control Unit.

Pesticides – Plant and Pesticides Regulatory Division for agricultural chemicals.

Food and Beverage – Approved by the Food and Environmental Hygiene Department to ensure food businesses meet strict safety and hygiene standards.

Financial Services – Required by the Securities and Futures Commission for companies providing investment advice, trading, or asset management.

Securing the right licence early helps you avoid compliance risks and keep operations on track.

Smart Startup Solutions for HK Entrepreneurs

Managing the legal and administrative requirements of a Hong Kong venture can be complex, especially when licensing is involved. With one of the world’s lowest profits tax rates at 8.25% – far below many other jurisdictions – Hong Kong offers a compelling base for entrepreneurs planning to register a company in Hong Kong and optimise tax efficiency. AsiaBC’s all-in-one Business Booster package is designed to simplify the process and set your business on the right path from the outset.

Here’s how we support your success :

Business Licensing Made Easy – We handle your Business Registration Certificate (BRC) application from start to finish, ensuring full compliance with local regulations.

Comprehensive Incorporation Services – From company secretary support to a registered office address and help with opening a multi-currency business account in Hong Kong, our solutions cover every stage of setup.

Tailored Expertise for Every Venture – Our team provides customised services to match your business goals, helping you establish and scale with confidence in Hong Kong.

Opening a Hong Kong limited company could be the quickest and most straightforward way to realise your entrepreneurship from scratch. But in light of the current unexpected global situation, some entrepreneurs may think: Is it a good time for me to start a business (in HK) now? Shall I just pause all my plans?

Although the COVID-19 outbreak may have upset your business plan, as the old adage goes, “crisis creates opportunities”, there are many reasons why HK is still a preferable business hub at present. For example, the HK government managed to boost the small-and-medium enterprises recently by cutting various administrative fees and giving massive tax breaks to relieve the burden of startups and SMBs.

Coupled with that the most stress-free remote regime of Company Registration Hong Kong and compliance among many countries in the world, plus instant online multi-currency accounts are well-developed and available for you at a very cost-effective rate. We can say it is the perfect moment to set up your first HK company.

Here’re the top three hot measures that can benefit every HK business nowadays. Take a look and see if they are useful for you before the end of these perks.

‘0’ Business Registration Fees

Business Registration Fee is an administrative fee to pay when obtaining a valid Business Registration Certificate (B.R.) for a business entity to operate in HK. Typically, the annual cost is HK$2,000/year for each certificate. Within 1 Apr 2020 and 31 Mar 2021, the Government cuts this fee to ‘0’ that is applicable to every incorporated and individual entity.

Reference: Waiving Business Registration Fees for 2020/21 – from IRD

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‘0’ Company Annual Return Fees for 2 Years

Annual Return fee is another administrative payment that is related to renewing the Certificate of Incorporation of a HK limited company. Companies have to file an Annual Return and pay the fee by their anniversary date every year. The Government now waives this payment for two consecutive fiscal years, which costs HK$105/year originally.

Reference: Support Enterprises, Safeguard Jobs – from 2020/21 Budget of HKSAR Government

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100% Tax Breaks for Businesses & Individuals

The Government intends to reduce the taxpayers’ burden of Profits Tax and Salaries Tax in HK, although the Profits Tax rate is already pretty low at 8.25% on assessable profits up to $2,000,000. For the assessment year 2019/20 (covering from 1 Apr 2019 to 31 Mar 2020), a maximum HK$20,000 tax reduction is being offered to each case of Profits Tax, Salaries Tax and “Tax under Personal Assessment” respectively.

E.g., a HK company and its sole director can enjoy two sets of tax reductions, because the company’s and director’s incomes fall under two tax cases, that are Profits Tax of the company and Salaries Tax of the individual. Ceiling of each tax reduction case is HK$20,000.

Reference: Reducing Profits Tax, Salaries Rax & Tax under Personal Assessment for 2019/20 – from IRD

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Honourable Mention : Form Your HK Company & Banking Account Online

Under the current situation, your well-being is always our top priority, especially when social distancing and travel restrictions are taking place. To keep the ball rolling, you can get your HK company registered and banking account ready with AsiaBC’s remote help without paying a visit to HK.

No matter where you are, simply touch base with us and get our free Zoom video assessment to hear our prompt advice and clarify all your incorporation queries, and if all looks good to you, there is no need to visit the HK Government office to get your registration documents done because AsiaBC will handle all procedures remotely for you, and a multi-currency account can also be opened in hours for your business transactions right away.

Reference: HK Limited Company Remote Formation Package – from AsiaBC

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A bit concerned about your bank account opening? We totally understand but it is not a hassle for HK entrepreneurs anymore, when the bank-alike FinTechs such as Statrys, Currenxie, Payoneer, Neat, Airwallex or WorldFirst are ready to serve you with a one-stop multi-currency account solution. These platforms can let you open your company’s accounts via your mobile screen within days instead of months, and you can also manage your money shortly within their mobile apps or online portals once your company is formed. What’s more, their wholly online business operations eliminate any risk of physical contact with any local personnel at any stage of your business development.

Reference: Online Remote Opening of HK Multi-Currency Accounts (Neat / Currenxie / Statrys) – from AsiaBC

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Verdict

After going through many uncertainties, it’s time for a more positive view and make the most of the concessionary measures in the market to keep your ship sailing. By using the latest technology and smart tools, every business move can still be under your control at fingertips, making your life much easier.