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 |
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.
Businesses in these fields often need approval from specific regulatory authorities:
Companies involved in the import, export, manufacturing, or sale of goods may require special licenses for specific products or industries:
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 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 |