Log on to Business Internet Banking
Find out more
Government Requirements
Registrations
When starting a business, there are certain registrations you must apply for before you begin trading.
Business registration
- You must register your business with the Business Registration Office of the Inland Revenue Department within one month.
- A Business Registration Certificate must be displayed in a conspicuous place at your business premises.
- Having a Business Registration Certificate does not imply that you have complied with the legal requirements relating to your business. You may have to apply for other types of licenses, permits, certificates or approvals relevant to your business operations in Hong Kong.
Company registration
- The Companies Ordinance governs the incorporation of a limited company in Hong Kong. Before incorporating a limited company, you must have a company name that does not already appear on the Registrar's index. You can do a free name search on registered companies in the Public Computer Terminal Room at the Companies Registry.
- For registration, you will need:
- Memorandum and Articles of Association of your company
- A statutory declaration of compliance
- A proforma stating your company's name, the presenter's name, contact telephone number, fax number and address, together with the prescribed fee.
- Memorandum and Articles of Association of your company
Trademark/patent/design registration
- The registration of a trademark gives you the right to prevent others from either using the trademark without prior consent, or using a trademark which is deceptively similar.
- The Government also has a registration system for patents. A patent will only be granted if the invention is original and capable of being industrially applied.
- The Intellectual Property Services Centre of the Hong Kong Productivity Council helps companies and individuals register trademarks, patents and registered designs in Hong Kong and via other intellectual property institutions all over the world.
Back to top
- Statutory reports are required annually for companies incorporated in Hong Kong.
- The reports must contain audited financial statements for the current year, with corresponding amounts for the preceding year, including a balance sheet, profit and loss account, and a cash flow statement.
- Audited financial statements must be signed off by a certified public accountant.
Record keeping
- The Inland Revenue Ordinance requires you to keep sufficient records to enable your assessable profits to be readily ascertained.
- All records must be retained for seven years from the transaction date.
- The Inland Revenue Department has issued guidelines to help small businesses in preparing and keeping their records. The guidelines explain the minimum records for compliance.
- If your business deals in goods, you must maintain records of all goods purchased and sold. In most cases, the relevant purchase and sales invoices issued for the transactions will satisfy the requirement.
- If your business provides services, you must maintain records of all services provided in sufficient detail to enable the Inland Revenue Department to verify the entries in your day-to-day records of monies received and expended.
Back to top
- Individuals, corporations, partnerships and trustees conducting any trade or business in Hong Kong are required to pay tax on profits arising in or derived from Hong Kong.
- All business operators are required to file a Profits Tax Return with the Inland Revenue Department every year.
- Deductions are permitted for all outgoings and expenses with the exception of:
- expenses of a domestic or private nature
- capital expenditure, wholly, exclusively and necessarily incurred in the production of the assessable profits
- depreciation and other capital allowances in respect of plant and machinery
- losses brought forward from previous years of assessment
- expenses of a domestic or private nature
- As an employer you must notify the Commissioner of Inland Revenue in writing within three months of the commencement of employment in Hong Kong of an individual likely to be chargeable to tax.
- You must also provide an annual return of remuneration for employees within one month of the date of issue, which is normally in April each year
Back to top
- There are no customs tariffs in Hong Kong.
- Excise duties are levied only on tobacco, liquor, methyl alcohol and hydrocarbon oil.
- Import or export declarations are required within fourteen days of the import or export of goods.
- Import and export licences, and certificates of origin are only required in order to enable Hong Kong to fulfill its obligations under international agreements or requirements for importing countries, and for public health, safety or security reasons.
- Textiles and clothing products for export to certain markets are currently subject to quota restraint.
- For more details of licensing requirements, visit www.tid.gov.hk
Disclaimer:
This section is intended as a general guide for reference only.
The information contained in this section should not be relied upon as a substitute for professional advice in individual cases. Future changes in legislation, tax levels and practice could affect the information in this site.
The information shown is based on data or information obtained from sources believed to be reliable but HSBC makes no representation and accepts no responsibility as to its accuracy or completeness and will not be hold liable for damages arising out of any person's reliance upon this information.
Information sourced from Inland Revenue Department, Labour Department, Trade and Industry Department and Productivity Council.
Back to top
