To have smooth business operations in Hong Kong, it's necessary to obtain the relevant business licenses. The city offers a diverse range of licenses to cater to various industries, such as real estate, restaurants, construction, and retail.
What Is a Business License in Hong Kong?
A business license is an official permit that allows a company to engage in specific regulated activities in Hong Kong legally. It is not the same as general business registration or company incorporation.
Here’s how it differs from other documents:
- Business Registration Certificate (BRC):
Issued by the Inland Revenue Department, the BRC is mandatory for nearly all profit-making businesses in Hong Kong (with rare exceptions like licensed hawkers). It enables a company to operate legally and is mainly used for tax and compliance purposes.
- Certificate of Incorporation:
Issued by the Companies Registry, this certificate confirms that a company has been legally formed and recognized as a separate legal entity.
Key Differences at a Glance
| Document | Issuing Authority | Purpose | Who Needs It |
|---|---|---|---|
| Business License | Specific regulatory body (varies by industry) | Authorizes certain regulated activities | Businesses in regulated sectors (e.g., finance, F&B, education) |
| Business Registration Certificate (BRC) | Inland Revenue Department | Legal operation and tax registration | All profit-making businesses |
| Certificate of Incorporation | Companies Registry | Legal recognition as a company | Incorporated entities only |
Who Needs a Business License in Hong Kong?
In Hong Kong, certain industries must obtain a business license before starting operations. These licenses are required in addition to the Business Registration Certificate (BRC) and, for companies, the Certificate of Incorporation.
Below are common sectors that require licensing:
Services and Institutions
Businesses in these fields often need approval from specific regulatory authorities:
- Financial and Insurance Services
- Employment Agencies
- Travel and Tourism Services
- Educational Institutions
- Legal and Accounting Services
- Healthcare and Social Services
- Arts, Entertainment, and Recreation
- Construction and Real Estate
- Transportation, Storage, Postal, and Courier Services
- Information and Communication Services
- Water Supply, Waste Management, and Sewerage
Trade, Retail, Industrial, and Manufacturing
Companies involved in the import, export, manufacturing, or sale of goods may require special licenses for specific products or industries:
- Apparel, Footwear, and Accessories
- Jewelry, Watches, and Antiques
- Leather, Fur, and Feather Products
- Cultural, Sports, and Recreational Goods
- Furniture and Fixtures
- Electronics, Telecommunications, and Machinery
- Firearms, Explosives, and Safety Equipment
- Food Products (Meat, Seafood, Produce, Dairy, Bakery, Confectionery)
- Beverages and Tobacco
- Cosmetics, Toiletries, and Medicines
- Medical Devices and Equipment
- Chemicals and Chemical Products
- Petroleum, Gas, and Coal
- Minerals and Raw Materials
- Pets, Aquariums, and Agricultural Drugs
Different Types of Licenses for Business Activities
Unlike the US, which has a federal system where businesses may need a federal license and a state-level license from a federal agency, Hong Kong (HKSAR) operates under a unitary system.
The central government (HKSAR government) issues all necessary business licenses.
Let's take a look at the eight different types of Hong Kong business licenses you can look out for:
| License Type | Issuing Authority | Key Activities Covered | Additional Licenses/Notes | Approx. Cost |
|---|---|---|---|---|
| Education Business License | Education Bureau (EDB) | Kindergartens, vocational centers, academic/language schools, enrichment centers | Provisional Registration Certificate valid for 1 year if requirements not fully met | ~HK$1,000 |
| Employment Agency License | Labour Department | Recruitment and placement services | Executive search, headhunting, domestic worker agencies all require it. Valid for 1 year. | Varies |
| Event Management License | FEHD, others | Public/community/sporting events, concerts, exhibitions, etc. | May also require: Temporary Entertainment, Amusement with Prizes, Lottery, Liquor, Food Factory License, etc. | Varies by event type |
| Financial Services License | IA, CR, Police, SFC, HKMA | Insurance, money lending, pawnbroking, investment advisory, banking | Multiple licenses: Insurance Broker, Money Lender, Pawnbroker, SFC Representative, Deposit-Taking, etc. | Varies widely |
| Restaurant License | FEHD | Operating a restaurant | May also need: Bakery, Food Factory, Karaoke, Dangerous Goods, Seating, Restricted Food, Vending Permits | Varies by scope |
| Retail Shop License | AFCD, Dept. of Health | Retail of pets, herbal medicine, pharmaceutical products | May require Pet Shop Licence, Herbal Medicine Licence, Poisons Certificate, Medical Device Listing | Varies by products sold |
| Trading Company License | CED, AFCD, TID, Dept. of Health | Import/export of controlled goods (e.g., tobacco, chemicals, food, drugs, textiles) | Specific licenses required per product category; Import/Export License needed | Varies by product type |
| Travel Agency License | Travel Industry Authority (TIA) | Tour packages, ticket sales, travel and hotel arrangements | Travel Agent's License covers multiple travel-related services | Varies |
How to Apply for a Business License in Hong Kong
After determining the available business licenses in Hong Kong, your business must first be registered with the government. The Inland Revenue Department (IRD) requires all businesses—whether operating physically or online—to obtain a Business Registration Certificate (BRC) before they can apply for industry-specific licenses.
Step 1: Register Your Business
Who Needs to Register?
According to the Hong Kong Inland Revenue Department (IRD), the following entities must register their business:
- Any form of trade, commerce, or profession conducted for profit (including online businesses)
- Clubs offering exclusive facilities and services to members
- Companies incorporated in Hong Kong under the Companies Ordinance
- Non-Hong Kong companies that have established a place of business in Hong Kong
- Open-ended fund companies and limited partnership funds
Exception: Individuals working as employees do not need business registration.
When to Register?
- Sole proprietors, partnerships, and unincorporated businesses → Within 1 month of starting operations
- Companies registered under the Companies Ordinance → Registered automatically through the One-stop Company and Business Registration system
- Limited Partnership Funds → Must register at the Companies Registry and apply for business registration at the same time
Required Documents & Fees
To register your business, you must:
1. Fill out the correct application form based on your business structure:
- Form 1(a): Sole proprietorship
- Form 1(b): Corporations
- Form 1(c): Partnerships
- Form 1(d): Branch businesses
2. Provide proof of identity (e.g., HKID for locals, passport for non-residents)
3. Pay the business registration fee and levy (Varies depending on business type)
Where to Apply?
- In person: Business Registration Office, 2/F, Inland Revenue Centre, 5 Concorde Road, Kai Tak, Kowloon
- By post: P.O. Box 29015, Concorde Road Post Office, Kowloon
- Online: Via eTAX at GovHK (for sole proprietors, partnerships, and branch businesses)
Processing Time: Typically 1 working day if submitted in person or online.
Step 2: Apply for a Business License
Once you have a Business Registration Certificate (BRC), you can proceed with applying for the relevant business license based on your industry.
License Fees & Processing Time
| Business Type | Licensing Authority | Estimated Fees | Processing Time |
|---|---|---|---|
| Education Business | Education Bureau (EDB), Land Registry (LR), Labour Department (LD), Fire Services Department (FSD) | Fees vary depending on location and facility compliance | 10 working days (for provisional registration if all documents are in order) |
| Employment Agency | Labour Department | HK$2,000 (licence fee) + HK$385 (per duplicate licence, if applicable) | Not specified |
| Event Management Company | Home Affairs Department (HAD) | Varies check here | 2–4 weeks |
| Financial Services Company | Hong Kong Monetary Authority (HKMA) / Securities and Futures Commission (SFC) | Varies check here | Depends on completeness of documents & overseas supervisory authority response |
| Restaurant | Food and Environmental Hygiene Department (FEHD) | 50% of full licence fee (refunds available if converted to full licence) | 2–6 weeks |
| Retail Shop | Depending on products sold (e.g., FEHD for food, TCO for tobacco) | Varies check here | 2–6 weeks |
| Trading Company | Trade and Industry Department (TID) & Hong Kong Customs | Varies check here | 4–8 weeks |
| Travel Agency | Travel Industry Authority (TIA) | Application fee: HK$630 Licence fee: HK$485 per month |
Not specified |
Fees and processing times vary based on industry regulations and business complexity. For a complete list of business licenses based on your specific industry, check here BLIS – Hong Kong Business Licensing Guide
Business License Renewal & Compliance
Renewing your business license on time is crucial to keep your business legally operational in Hong Kong.
Here’s how to stay compliant:
- Track renewal deadlines—each licensing authority sets its own schedule.
- Stay updated on regulations—government bodies like the Securities and Futures Commission (SFC) and Hong Kong Monetary Authority (HKMA) publish industry-specific updates.
- Use official resources—the Companies Registry and Business Licence Information Service (BLIS) provide updated regulatory requirements.
- Maintain proper records—ensure your license documents are current and accurate.
Can You Transfer a Business License in Hong Kong?
No, business licenses in Hong Kong cannot be transferred to another person or entity. Licenses are issued to a specific individual or company and remain tied to that legal entity.
If you sell your business or change ownership, the new owner must apply for a new license under their name, even if the business name and location stay the same.
To avoid disruptions, plan the license transfer process in advance and ensure the new owner meets all application requirements.
Consequences of Operating Without a Business License in Hong Kong
Failing to register can result in a HK$5,000 fine and up to 1 year in prison. Late registration also requires paying retroactive fees for past years.
Certain industries, such as restaurants, financial services, and travel agencies, require specific licenses. Operating without one can result in fines of up to HK$1,000,000, business closure, or legal action.
Check licensing requirements here to stay compliant.
Final Words
Looking to navigate all the HK licenses when registering your business?
Register your company with Air Corporate today, and we'll help you get the business licenses you need.
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FAQs
To check a business license in Hong Kong, visit the Business Registration Number Enquiry service on the Inland Revenue Department (IRD) website. You can search using the business name or registration number. Check here: IRD Business Registration Enquiry.
To renew your Business Registration Certificate in Hong Kong, submit the renewal application to the Inland Revenue Department (IRD) before the certificate expires. You can renew online via eTAX, by mail, or in person at the Business Registration Office. Renew here: IRD Business Registration Renewal.
A Business Registration Certificate (BRC) in Hong Kong is a legal document issued by the Inland Revenue Department (IRD) that proves your business is registered. It must be displayed at your business premises and renewed annually or every three years, depending on your registration period.
