In Hong Kong, the Business Registration Certificate (BRC) is an official document issued by the Inland Revenue Department. It serves as proof of a company’s registration and its right to operate legally in Hong Kong.
It’s only possible to run a business with a Business Registration Certificate.
The certificate contains basic information about the company: name, address, activities, and registration details. The BRC is basically a business card, as companies are required to display it in a prominent place in their registered office (analogous to the Ukrainian and Polska LLC registration certificate).
Here is a sample of what a business registration certificate looks like:
Failure to obtain or maintain a valid business registration certificate may result in fines and other consequences.
The certificate is usually valid for one year and must be renewed annually.
How to obtain a Business Registration Certificate in Hong Kong?
You or your registrar must apply for this certificate within 30 calendar days from the company registration date. To do this, you must fill out the IRBR 37 form and pay the service fee on the registration service website. The certificate is available two days after registration.
As a rule, applying for a business registration certificate is done simultaneously with registering for a company in Hong Kong. If you do it at the same time, you will receive both documents at once and can start your business quickly.
Suppose you already have a valid certificate but have made changes (to the articles of association, name, etc.). In that case, you will also need to apply to the Business Registration Office and submit an updated certificate every time the company’s information changes.
Below are the data to be included in the BRC:
- Company name
- Type of company
- Company address
- Type of business activity
- Date of commencement of the company’s activities
- Date of expiry
- Unique BRC number
All businesses, including sole proprietorships, partnerships, and companies, must obtain a BRC before starting to operate. A BRC shows that the business is legal and registered with the Tax Office.
Business Registration Certificate and Business Registration Number in Hong Kong
The main difference between a Business Registration Certificate (BRC) and a Business Registration Number (BRN) is their purpose:
- BRC (Business Registration Certificate):
A physical certificate issued to a registered business entity in Hong Kong. It proves that the government has registered the business and is legally authorized to operate.
- BRN (Business Registration Number):
A unique identifier is assigned to every registered business entity in Hong Kong. Government departments, banks, and other institutions use it for administrative and identification purposes. It helps to track and identify businesses for various transactions and compliance purposes.
What is the difference between a BRC and a BRN?
Unlike a BRC, a physical certificate, a BRN is a digital identifier linked to a company’s registration record in government databases.
Are BRC and BRN issued simultaneously?
Yes, when a business entity is registered in Hong Kong, the business registration certificate (BRC) and the business registration number (BRN) are usually obtained simultaneously. Upon completing the business registration process, the government issues a BRC as proof of registration and assigns a unique BRN to the entity. These two documents are usually submitted together as part of the registration process.
Penalties for non-compliance with BRC requirements
If you do not comply with the requirements and do not apply for a Business Registration Certificate, you will be fined significant amounts (or even go to jail!). If you are late in applying for a certificate, you must pay the current renewal fee, any fees for the years you failed to comply, and additional fines.
Please note that this can lead to other problems, such as the timely filing of tax returns, which is also a problem for the IRD. Thus, we recommend you apply for the certificate as soon as possible to ensure your business operations run smoothly.
The Hong Kong business climate is attractive to international investors, but compliance with local laws and regulations is required. Obtaining and maintaining a BRC is key to your success and legal operation in Hong Kong.
Our team is ready to provide consultation on these issues. Our business hours: Monday to Friday, 9:00 AM — 7:00 PM. Contact us via WhatsApp, Telegram, or Viber, or submit an inquiry through our online form.
