Businesses must renew their BRC before expiration to avoid penalties, with a demand note issued one month prior to the renewal period.
Essential documents include the current BRC, Business Registration Number (BRN), tax account number, and demand note. Any business changes, such as a new address, require additional forms.
Businesses can renew their registration online, by mail, or in person at the Business Registration Office. If the demand note is not received, a replacement must be requested.
Failure to renew on time can result in a HK$300 late penalty per year, possible legal action, or deregistration of the business.
After renewal, businesses must update records, renew licenses and permits, meet filing obligations, and track future renewal deadlines to stay compliant.
A key step in establishing a business in Hong Kong is obtaining a Business Registration Certificate from the Inland Revenue Department. While the process is straightforward, understanding the specific steps is important.
This certificate includes a Business Registration Number (BRN), which serves as proof that your company is legally registered in Hong Kong. The BRN is necessary for various business operations, including opening a corporate bank account, hiring staff, and applying for government permits.
It’s important to distinguish between a Company Registration Number and a Business Registration Number. Additionally, company registration renewal differs from business registration renewal, so consulting professionals can help clarify their differences.
Hong Kong authorities have launched the eTAX service, allowing the public to look up a company's Business Registration Number. This tool is useful for verifying your own registration status or gathering information about other businesses.
Understanding the Renewal Process for a Business Registration Number
Your Business Registration Number (BRN) is a distinct 8-digit identifier assigned to businesses in Hong Kong for legal and administrative purposes. It is required for various obligations, including tax filings.
In addition to the BRN, the Business Registration Certificate includes key details such as:
- The company’s name and address
- Business type and nature of operations
- Start and expiration dates
Displaying this certificate at your business premises shows compliance with regulations, increases credibility, and strengthens trust.
Timely renewal is crucial to maintaining compliance. The renewal process begins with a demand note issued by the Business Registration Office, which is sent out one month before the commencement of the renewed certificate.
If you do not receive a demand note as expected, notify the relevant authorities in writing within one month of your current certificate’s expiration.
This demand note serves as a reminder and provides essential details for renewing the BRC, including the validity period and renewal fee. The duration for which the certificate remains legally active, along with the start and expiry dates. The applicable fee is based on whether the business opts for a one-year or three-year registration.
Sample Business Registration Renewal Demand Note
Upon receiving the demand note, businesses should complete the renewal process before the certificate expires.
Failing to renew on time may lead to penalties, including a late fee of HK$300 per year, legal action, or potential deregistration. To avoid these consequences, timely compliance is essential.
Business Registration Renewal Process in Hong Kong
The renewal process involves several steps, which vary depending on whether the demand note is received on time.
Case 1: The Demand Note Arrives as Scheduled
Step 1: Receiving the Demand Note
Before the start date of the renewed Business Registration Certificate, businesses typically receive a demand note from the Business Registration Office. This document is usually issued around the middle of the previous month. For instance, if a certificate is set to begin in July, the demand note should arrive by mid-June, allowing sufficient time for renewal preparation.
Step 2: Paying the Renewal Fee
Once the demand note is received, businesses must submit the required payment. As of April 1, 2024, the renewal fees are:
- One-year certificate: HK$2,200
- Three-year certificate: HK$5,870 (HK$5,720 for the fee and HK$150 for the levy)
After payment is processed, the demand note automatically becomes the new Business Registration Certificate.
Case 2: The Demand Note Is Not Received or Is Misplaced
In situations where the demand note does not arrive after the previous certificate has expired, or if the document is lost, businesses can still complete the renewal using alternative methods.
In-Person Renewal
A company representative can visit the Business Registration Office to request a new demand note. It is important to bring the previous Business Registration Certificate and be prepared to pay the renewal fee.
Additionally, if the company’s registered address has changed and was not updated with the relevant authority, the business must complete Form IRC 3111A to report the change.
Renewal by Mail
For postal renewal, businesses must send a copy of their previous Business Registration Certificate along with a crossed cheque payable to The Government of the Hong Kong Special Administrative Region to the Business Registration Office.
Once the documents are processed, the updated certificate will be mailed to the company’s registered address.
Important Notice
If a business has changed its registered address, it is essential to notify the Business Registration Office by providing the following details:
- Business Registration Number
- Company Name
- Old and New Addresses
- Date of the Address Change
This ensures that the updated certificate is sent to the correct location and that the company’s records remain accurate.
Who Can Renew Business Registration in Hong Kong
In Hong Kong, business registration renewal is typically handled by the business owner, a designated representative, or an authorized agent.
Sole proprietors, partners in a partnership, and directors of a limited company can initiate the renewal process.
Businesses that have appointed a company secretary or an accounting firm may also authorize them to handle the renewal on their behalf.
Key Responsibilities After Business Registration Renewal
Once your Hong Kong business registration is renewed, there are essential follow-up tasks to ensure compliance and smooth operations. Below are some key areas to focus on.
Update Business Records
Ensure that all internal and external records reflect the updated registration details. This includes revising company documents, updating business contracts, and informing clients or suppliers about any relevant changes.
Renew Necessary Licenses and Permits
If your business operates under specific licenses or permits, verify that they are renewed on time. It is advisable to complete the renewal at least one month before expiration to prevent penalties or disruptions in operations.
Fulfill Filing Obligations
Compliance requirements include submitting annual returns, tax filings, and conducting audits as necessary. For example, an annual return must be filed within 42 days of the company’s incorporation anniversary.
Additionally, businesses are expected to hold an Annual General Meeting (AGM) and maintain accurate financial records, such as income statements, balance sheets, and tax-related documents.
Keep Track of Renewal Deadlines
Staying ahead of renewal deadlines is crucial for maintaining compliance. Implement a tracking system or set up reminders to ensure timely renewals for business registration and other regulatory obligations.
By staying organized and proactive, your business can seamlessly manage post-renewal responsibilities and continue operating efficiently in Hong Kong.
Conclusion
Renewing your BRC in Hong Kong is an important job that keeps your business legal and running smoothly. Knowing how to renew it, gathering the right documents, and meeting deadlines can help you avoid fines or getting shut down.
By keeping track of renewal dates, updating your business records, and filing the right paperwork, you can follow the rules and avoid problems. Also, staying on top of license renewals and financial reports will help your business grow in the long run.
Need help? Air Corporate can help renew your business registration or provide company secretarial services to reduce the burden on your shoulders.
FAQs
Failure to renew your business registration number can result in fines, penalties, and potential legal consequences. Additionally, your company may lose its ability to legally operate in Hong Kong.
Renewing your BRN provides several advantages, including:
- Official proof of legal business registration
- The ability to open a corporate bank account
- Authorization to hire employees
- Eligibility to apply for government permits and licenses
- Continued ability to conduct business in Hong Kong
To ensure a smooth renewal process, keep these tips in mind:
- Prepare all necessary documents in advance, as missing paperwork can lead to application rejection.
- Monitor your certificate’s expiration date regularly to avoid missing deadlines.
- Ensure full payment of the renewal fee, as incomplete payments will result in a rejected application.
