A Guide to Hong Kong Standard Industrial Classification Code

Picking the right HK Standard Industrial Classification Code (HSIC) is a key step when starting a business in Hong Kong. Get it wrong, and you could run into tax issues, licensing delays, or compliance problems. 

But with so many categories, it’s not always easy to know which one fits your business. Just like structuring your business plan sets you up for success, choosing the right HSIC code keeps things running smoothly. 

What is the Hong Kong Standard Industrial Classification (HSIC) Code?

The Hong Kong Standard Industrial Classification Code is a system used to categorize businesses based on their main economic activities. It was developed and maintained by the Census and Statistics Department (C&SD) and is modeled after the International Standard Industrial Classification (ISIC) Revision 4 by the United Nations.

HSIC has been updated over the years to reflect changes in Hong Kong’s economy:

As Hong Kong’s economy expanded, new industries emerged, requiring a more precise classification system. HSIC V2.0 was designed to:

• Improve accuracy and relevance in business classification.
• Align with global industry classification standards while adapting to Hong Kong’s unique economic structure.
• Expand from a four-level to a five-level hierarchical system, increasing classification detail.
• Increase the number of industry categories from 886 to over 1,000 six-digit codes.

Why Does the HSIC Code Matter for Your Business?

The HSIC Code isn’t just a registration requirement—it affects regulations, government policies, and business strategy. Choosing the right code ensures compliance, accurate industry data, and better decision-making. Here’s why it matters:

1. Required for Company Registration

When registering a company in Hong Kong, you must select an HSIC Code that reflects your business activities. This ensures the government keeps accurate records and categorizes businesses correctly. The Census and Statistics Department (C&SD) uses this information for economic reporting and industry analysis.

2. Impacts on Government Policies and Industry Regulations

HSIC codes help the government track industry performance and shape policies that affect businesses. Certain sectors may receive tax incentives, funding opportunities, or regulatory benefits based on their classification. Using the correct HSIC code ensures your business is classified appropriately for any industry-specific policies.

3. Essential for Market Research and Business Strategy

Businesses can use HSIC codes to analyze industry trends, assess competition, and make informed strategic decisions. Understanding how companies in your sector are classified helps with benchmarking and identifying market opportunities. If you're considering Hong Kong offshore company formation, proper classification can also impact regulatory requirements and tax benefits.

4. Used for Economic and Statistical Reporting

Government agencies, investors, and analysts rely on HSIC codes to study market trends, employment rates, and sector growth. Choosing the right code ensures your business data is accurately reflected in economic reports, which can influence industry forecasts and investment trends.

Understanding the Structure of HSIC Codes

The HSIC Code follows a five-level structure, grouping businesses from broad industry categories down to specific activities. This system ensures businesses are classified accurately for registration, reporting, and policy-making.

Here’s how the structure works:

1. Industry Section (Top Level) – 1 Letter Code (A-U)

At the highest level, businesses are grouped into 21 major industry sections, each represented by a single letter (A to U). This gives a general idea of what sector a business belongs to.

Example:

• G: Import/export, wholesale, and retail trades
• J: Information and communications

2. Industry Division – 2-Digit Code (01-99)

Each Industry Section is broken down into 88 Industry Divisions, using a two-digit numeric code. This level provides a bit more detail about the business type.

Example:

• 47: Retail trade (under Section G)
• 62: Computer programming, consultancy, and related activities (under Section J)

3. Industry Group – 3-Digit Code (011-990)

Industry Divisions are further divided into 221 Industry Groups, represented by a three-digit code. This level focuses on the nature of the business in more depth.

Example:

• 472: Retail sale of food, beverages, and tobacco in specialized stores (under Retail Trade - 47)
• 620: Computer programming and software development (under Computer Services - 62)

4. Industry Class – 4-Digit Code (0110-9900)

The 483 Industry Classes provide an even more specific classification by defining the main business activity.

Example:

• 4721: Retail sale of food in specialized stores (under Retail Food Sales - 472)
• 6201: Software development (under Computer Programming - 620)

5. Industry Sub-class (Most Detailed) – 6-Digit Code (011000-990000)

At the most detailed level, 1,001 Industry Sub-classes define the exact nature of a business using a six-digit code.

Example:

• 472105: Retail sale of fresh fruits and vegetables (under Retail Sale of Food - 4721)
• 620101: Development of mobile applications (under Software Development - 6201)

This five-level system makes it easier to classify businesses accurately, ensuring clarity in registration, compliance, and economic reporting. Each level refines the classification, so businesses fall into the right category without overlap.

Comprehensive List of HSIC Industry Sections (2025 Update)

Now that you understand how HSIC codes are structured, here is the complete list of HSIC V2.0 Industry Sections to help your business find the correct classification.

How to Find the Right HSIC Code for Your Business 

The Census and Statistics Department (C&SD) provides official tools to help businesses identify the right code. Follow this step-by-step process to ensure accuracy.

Step 1: Identify Your Primary Business Activity

• Define what your business does on a daily basis.
• Focus on your core revenue-generating activity.
• If your business covers multiple activities, choose the one that represents 50% or more of your operations.

Example:

• A company selling products online should look under retail trade rather than general IT services.
• A marketing consultancy firm should classify under professional, scientific, and technical activities rather than general business services.

Step 2: Search for Your HSIC Code Using the Official Online Tool

Use the HSIC V2.0 Online Search Tool provided by C&SD.

Enter keywords related to your business and review the suggested codes.

If multiple options appear, take note of the most relevant ones for further verification.

Step 3: Cross-Check with the Full HSIC Code Index

Go through the HSIC V2.0 Index of Industry Codes to compare similar codes.

Look at the Industry Section and Division to ensure your business fits into the correct category.

Avoid picking a code that only partially matches your operations.

Step 4: Verify Using the HSIC V2.0 Manual

Download the HSIC V2.0 Manual for detailed descriptions.

Read the explanatory notes to see if any restrictions or conditions apply to certain codes.

Check if any updated or new industry classifications affect your business.

Step 5: Compare with Similar Businesses

Research how similar businesses in your industry are classified. Look at business directories, company registration databases, or industry reports. If competitors in your sector use a specific HSIC code, it may be the best choice.

Step 6: Consider Future Business Growth

If you plan to expand services or change operations, choose a code that allows flexibility.

Some codes may be too narrow, restricting your ability to add new services under the same classification.

Step 7: Confirm with a Professional (If Needed)

If you're unsure, consult a corporate service provider or reach out to the C&SD directly for clarification.

Getting the wrong HSIC code can lead to registration delays, compliance issues, or incorrect tax classification.

HSIC vs. Other Industry Classification Systems

Different countries and organizations use industry classification systems to categorize businesses based on their economic activities. While the Hong Kong Standard Industrial Classification (HSIC) Code is the official system for Hong Kong, many other classification systems exist worldwide, each designed for local economic structures and international reporting.

While HSIC Code follows a five-level hierarchical structure, other systems may use four or six levels. Many systems, including HSIC, NAICS, and NACE, are based on ISIC but are adjusted for local economies.

HSIC is primarily used for business registration and industry statistics in Hong Kong, while some systems (like NAICS) also influence taxation and trade classifications.

If your business operates internationally, understanding different classification systems can help with market entry, compliance, and trade regulations. 

Legal & Compliance Risks of Choosing the Wrong HSIC Code

Government authorities, tax agencies, and financial institutions rely on Hong Kong Standard Industrial Classification Code for regulatory oversight, licensing, taxation, and risk assessments. Here’s what can go wrong if your business is misclassified.

1. Regulatory Non-Compliance

Government bodies such as the Companies Registry (CR), Inland Revenue Department (IRD), and industry regulators (SFC, HKMA, Customs & Excise Department) use HSIC codes to track business activities. If your code doesn’t match your actual operations, it could trigger compliance checks, audits, or even penalties for misreporting.

2. Licensing and Permit Issues

Certain industries in Hong Kong require specific licenses:

• Money Service Operators (MSOs) must register with the Customs and Excise Department.
• Financial services firms need approval from the Securities and Futures Commission (SFC).

If your HSIC code doesn’t align with the required industry classification, you may fail to obtain necessary permits or unknowingly operate illegally.

3. Taxation and Auditing Risks

The IRD uses HSIC codes to assess tax obligations. A wrong classification could:

• Trigger unnecessary audits due to discrepancies in reported business activities.
• Lead to tax penalties if a company wrongly claims industry-specific tax benefits or deductions.

4. Risk of Misrepresentation & Fraud Allegations

If an incorrect HSIC code results in false reporting, businesses may face:

• Fines and penalties under the Companies Ordinance (Cap. 622).
• Fraud allegations if misclassification appears intentional.
• Legal consequences if incorrect data affects contracts, investor reports, or official filings.

5. Banking & AML Compliance Risks

Banks use HSIC codes for Know Your Customer (KYC) and Anti-Money Laundering (AML) checks. A misclassified business may:

• Have its bank account application rejected or delayed.
• Undergo enhanced due diligence (EDD) and face stricter compliance checks.
• Be flagged under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO, Cap. 615).

6. Loss of Government Grants & Incentives

Hong Kong offers industry-specific grants like:

• SME Export Marketing Fund (EMF)
• Technology Voucher Programme (TVP)

A misclassified business might miss out on financial support or even be required to repay grants if discovered later.

7. Contractual and Insurance Risks

Insurance providers assess industry risk when issuing policies. If your business is misclassified:

• Certain insurance claims may be denied.
• Premiums may be incorrectly calculated, leading to coverage gaps.
• Contracts relying on industry-specific terms may be invalidated due to incorrect classification.

Conclusion

Choosing the right Hong Kong Standard Industrial Classification Code is essential for business registration and compliance. A mistake in classification can lead to legal, financial, and operational risks.