Pros and Cons of Opening and Managing a Business in Hong Kong
The “one country, two systems” concept provides startups in Hong Kong, as a Special Administrative Region (SAR) of China, with extensive opportunities for growth. Annually, the city ranks at the top of global ratings, indicating its openness to business activities. So, what could be the key advantages of opening a company in Hong Kong specifically […]
The “one country, two systems” concept provides startups in Hong Kong, as a Special Administrative Region (SAR) of China, with extensive opportunities for growth. Annually, the city ranks at the top of global ratings, indicating its openness to business activities. So, what could be the key advantages of opening a company in Hong Kong specifically for you? Registration Process First of all, it is worth noting the timelines, financial investment, and remote work format. For instance, registration takes 2 days, the minimum share capital threshold is 1 Hong Kong dollar, and there is a simplified procedure for document legalization via apostille. Overall, the costs at the company formation stage are very low compared to other jurisdictions. The lower threshold for business registration cost here starts from 990 US dollars. <img fetchpriority="high" decoding="async" width="979" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-opening-a-business-in-hong-kong-quickly-and-with-minimal-investment-979x1024.webp" alt="" class="wp-image-15922" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-opening-a-business-in-hong-kong-quickly-and-with-minimal-investment-979x1024.webp 979w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-opening-a-business-in-hong-kong-quickly-and-with-minimal-investment-287x300.webp 287w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-opening-a-business-in-hong-kong-quickly-and-with-minimal-investment-768x803.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-opening-a-business-in-hong-kong-quickly-and-with-minimal-investment-143x150.webp 143w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-opening-a-business-in-hong-kong-quickly-and-with-minimal-investment.webp 1429w" sizes="(max-width: 979px) 100vw, 979px" /> In the SAR, renting a physical office is not mandatory, so it is more than feasible to conduct business outside of Hong Kong by opening a bank account remotely using modern payment systems. It is also convenient that non-residents can be both shareholders and directors without obtaining visas or permits. As for financial accounting, it is also in a simplified format with an annual reporting period. However, a local company secretary is required, and the storage of documents for most major types of financial and business operations is mandatory for audit purposes. <img decoding="async" width="1024" height="989" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-advantageous-taxation-system-1024x989.webp" alt="" class="wp-image-15923" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-advantageous-taxation-system-1024x989.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-advantageous-taxation-system-300x290.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-advantageous-taxation-system-768x742.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-advantageous-taxation-system-1536x1483.webp 1536w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-advantageous-taxation-system-155x150.webp 155w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-advantageous-taxation-system.webp 1545w" sizes="(max-width: 1024px) 100vw, 1024px" /> Taxation Hong Kong offers a territorial principle of taxation. What does this mean? Profits tax is only levied on income sourced within the SAR. The following rates apply: 8.25% on profits up to 2 million Hong Kong dollars, and 16.5% on profits exceeding 2 million Hong Kong dollars. Also, companies do not pay VAT, which simplifies reporting and increases net profit. Geographical Location for Import and Export Being a major global hub for trade between East and West, Hong Kong has double taxation avoidance agreements with 49 jurisdictions. Its advantageous geographical location and access to Chinese markets provide ample opportunities for cooperation with mainland China on import and export. This enables duty-free trade, significantly reducing the cost of goods. <img decoding="async" width="1024" height="756" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-hong-kong-a-global-trading-hub-between-east-and-west-1024x756.webp" alt="" class="wp-image-15924" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-hong-kong-a-global-trading-hub-between-east-and-west-1024x756.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-hong-kong-a-global-trading-hub-between-east-and-west-300x221.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-hong-kong-a-global-trading-hub-between-east-and-west-768x567.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-hong-kong-a-global-trading-hub-between-east-and-west-203x150.webp 203w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-hong-kong-a-global-trading-hub-between-east-and-west.webp 1429w" sizes="(max-width: 1024px) 100vw, 1024px" /> Legal Peculiarities Regarding dividends for businesses in Hong Kong, there are also a number of pluses. The frequency of these profit distributions is not regulated, and interim dividends are permitted. Furthermore, a preferential regime is in place: dividends are transferred to shareholders without withholding tax at source, and capital gains are not subject to taxation. Another attractive aspect for international investors of doing business in Hong Kong is the application of the English common law system, which allows for adapting contract terms according to business goals. In turn, the absence of foreign exchange control allows for making payments freely in any currency. It is important that transfers have a legal basis and are properly documented. Risks Are there any drawbacks or challenges to Hong Kong as a jurisdiction for establishing and running a business?There is always a chance of facing difficulties when opening a corporate account with traditional banks. But it is always possible to find an alternative in the form of payment service providers, which successfully meet the needs of small and medium-sized businesses. High competition in some sectors is also a factor. For example, in the real estate market, fueled by interest from wealthy mainland Chinese citizens and Hong Kong’s small size. Moreover, prices for residential and office properties here are among the highest in the world. But this too is solvable – a company is entitled to register in Hong Kong and conduct its operations in other countries without additional expenses for renting or buying property. Regarding financial relationships between the company and employees, there are some nuances, from the mandatory 13th-month salary at year-end to the employer’s 5% contribution to the Mandatory Provident Fund (MPF) scheme. However, you can hire foreign specialists without these contributions. <img loading="lazy" decoding="async" width="1024" height="836" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-features-of-hong-kongs-legal-system-and-business-environment-1024x836.webp" alt="" class="wp-image-15925" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-features-of-hong-kongs-legal-system-and-business-environment-1024x836.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-features-of-hong-kongs-legal-system-and-business-environment-300x245.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-features-of-hong-kongs-legal-system-and-business-environment-768x627.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-features-of-hong-kongs-legal-system-and-business-environment-184x150.webp 184w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-features-of-hong-kongs-legal-system-and-business-environment.webp 1429w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> The procedure for closing a business in Hong Kong takes more time than its incorporation, although it is quite transparent and predictable. One of the most accessible methods of liquidation is deregistration of the company, provided it has not commenced operations or has ceased operations for more than 3 months and has no outstanding liabilities. The process takes from 8 months and costs approximately 3,500 US dollars. An annual audit is mandatory here, which fosters a trustworthy reputation for Hong Kong. At this stage, receiving a clean audit opinion signifies the correctness of the financial statements. Overall, the requirement for an audit provides a basis for determining the profit or loss of Controlled Foreign Companies (CFCs) under Hong Kong legislation. Register company in Hong Kong in 1 day with free business bank account <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Profits made outside of Hong Kong are not taxed <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> There is no VAT tax or its equivalent in Hong Kong <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Top 3 in global Doing business rankings Free consultation Difficulties in obtaining a right of abode can also arise, but it is not necessary for running a business if you have no plans related to permanent presence in the SAR. It is also worth considering that the ability to utilize the tax advantages of the territorial principle depends on the physical presence of the company’s founder or its key employees in Hong Kong. In general, the SAR Government provides the right of abode to entrepreneurs and investors who contribute favorably to the city’s economic development. Opportunities What else is worth noting?Tourists and citizens of other countries can visit Hong Kong visa-free for up to 14 days. English has the status of a second official language, which practically eliminates translation difficulties in both business and everyday communication. Without any problems, in Hong Kong you will have the opportunity to register and get a permanent SIM card with a number from a local provider, as well as purchase a regional domain for your company’s website. <img loading="lazy" decoding="async" width="1024" height="679" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-what-else-makes-hong-kong-appealing_-1024x679.webp" alt="" class="wp-image-15926" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-what-else-makes-hong-kong-appealing_-1024x679.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-what-else-makes-hong-kong-appealing_-300x199.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-what-else-makes-hong-kong-appealing_-768x509.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-what-else-makes-hong-kong-appealing_-226x150.webp 226w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-what-else-makes-hong-kong-appealing_.webp 1429w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> The city provides great scope for shaping your lifestyle. This includes the possibility of leisure time on the beaches of the South China Sea, the experience of tasting unique and diverse Asian cuisine, and the opportunity to travel while running an international business without any restrictions. All of this together creates the foundation for forming your very own personal advantage, which outweighs any risks or drawbacks when starting a business in Hong Kong.
How to Obtain an MSO License in Hong Kong: A Step-by-Step Guide for Businesses
Since 1 April 2012, the regulation of Money Service Operators (MSOs) in Hong Kong has been carried out by the Customs and Excise Department (C&ED). The regulator’s authority is established under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615, AMLO). An MSO licence is mandatory for any person—whether an individual or a legal entity—who […]
Since 1 April 2012, the regulation of Money Service Operators (MSOs) in Hong Kong has been carried out by the Customs and Excise Department (C&ED). The regulator’s authority is established under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615, AMLO). An MSO licence is mandatory for any person—whether an individual or a legal entity—who carries on or intends to carry on a money service business in Hong Kong as a commercial activity. <img loading="lazy" decoding="async" width="1024" height="461" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-who-issues-the-licences_-1024x461.webp" alt="" class="wp-image-15556" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-who-issues-the-licences_-1024x461.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-who-issues-the-licences_-300x135.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-who-issues-the-licences_-768x346.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-who-issues-the-licences_-250x113.webp 250w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-who-issues-the-licences_.webp 1363w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> Money service activities are defined as two types of business: Money changing service This refers to the commercial activity of exchanging currencies carried out within Hong Kong. The following are not subject to regulation: Currency exchange incidental to a primary business activity (e.g., a retail store accepting payment in foreign currency); Currency exchange conducted by a hotel manager, provided both of the following conditions are met: the service is offered exclusively to hotel guests and only within the hotel premises; transactions are limited to purchasing foreign currency from guests in exchange for Hong Kong dollars. 2. Remittance service This refers to a commercial activity that includes one or more of the following actions: Sending money outside Hong Kong or arranging for such a transfer; Receiving money from abroad or arranging for such receipt or for the receipt of funds in a third country. <img loading="lazy" decoding="async" width="1024" height="717" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-what-is-a-_money-service__-1024x717.webp" alt="" class="wp-image-15557" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-what-is-a-_money-service__-1024x717.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-what-is-a-_money-service__-300x210.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-what-is-a-_money-service__-768x538.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-what-is-a-_money-service__-214x150.webp 214w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-what-is-a-_money-service__.webp 1363w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> If your business activity is subject to MSO licensing, you must submit a licence application before commencing such operations. Conducting money service activities without a licence constitutes a breach of the AMLO and may result in serious legal consequences. The licence is issued in a form approved by the Customs and Excise Department (C&ED) and must include: The address(es) of the premises where the licensed activity may be carried out (for physical operators) or a correspondence address (for online operators); Licensing conditions imposed under Sections 30–32 of the AMLO; The licence validity period (typically 2 years). MSO Licensing Considerations Based on Business Scale Although all remittance service providers and money changers are subject to regulation under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO, Cap. 615), and the law formally sets out uniform licensing conditions—with the exception of premises-related requirements—in practice, the Customs and Excise Department (C&ED) adjusts the depth and scope of its review, as well as its final licensing decision, based on the type and scale of the applicant’s operations. Licensing for Small and Medium-Sized MSOs This category applies to businesses offering a limited range of services—for example, local-only remittance services or money changing activities confined to Hong Kong (such as standalone exchange counters). Although such operators may be subject to less stringent financial resource requirements, they are fully required to comply with all AML/CFT standards, including: Implementing internal customer due diligence (KYC) procedures; Appointing a designated compliance officer responsible for AML matters; Maintaining suitable and secure premises; And other requirements. 2. Licensing for Larger MSOs with International Operations For companies engaged in international remittance services—particularly those involving transfers to or from high-risk jurisdictions, licensing requirements are significantly stricter. Such applicants must demonstrate: Sufficient capital and liquidity to support ongoing operations; A robust compliance system, including sanctions screening and geographic risk management; Relevant experience of the management team in handling cross-border payments; Established banking relationships with local or international banks. The regulator (Customs and Excise Department) pays particular attention to the operator’s ability to manage the heightened risks associated with international operations. Requirements for Obtaining an MSO License in Hong Kong Who Can Apply for an MSO Licence? To obtain a Money Service Operator (MSO) licence in Hong Kong, a company must meet a set of specific eligibility criteria. Key Eligibility Criteria for an MSO Licence in Hong Kong To apply for an MSO licence, a company must satisfy the following key requirements: 1. Legal Status The applicant must be a legally registered entity in Hong Kong. This includes: A local company incorporated under the Companies Ordinance (Cap. 622), or A foreign company with a duly registered branch or place of business in Hong Kong. Foreign companies without a formal legal presence in Hong Kong are not eligible to apply for an MSO licence. 2. Business Registration The company must complete business registration with the Inland Revenue Department (IRD) and obtain a Business Registration Certificate (BRC). Important: The BRC must explicitly list a business nature that corresponds to MSO activities (e.g., “money changing” or “money remittance”). This is specified when submitting Form IRBR200. 3. Financial Soundness Applicants must demonstrate sufficient capital to support the declared scope of business. While the law does not prescribe a fixed minimum share capital, the Customs and Excise Department (C&ED) assesses the following factors: The company’s liquidity; Sources of funding; the ability to cover operational and risk-related costs in accordance with the scale of the planned operations. 4. Organisational Structure and Personnel The company must have a clear management and operational structure, including: A designated Compliance Officer; An AML Officer responsible for fulfilling anti-money laundering obligations; Qualified operational staff; An internal control and reporting system. The number and qualifications of personnel must be commensurate with the declared scale and geographic scope of the activities. <img loading="lazy" decoding="async" width="483" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-483x1024.webp" alt="" class="wp-image-15560" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-483x1024.webp 483w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-142x300.webp 142w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-768x1627.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-725x1536.webp 725w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-967x2048.webp 967w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-71x150.webp 71w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-scaled.webp 1208w" sizes="auto, (max-width: 483px) 100vw, 483px" /> Management and Key Personnel Requirements for an MSO License in Hong Kong In addition to the company itself, the regulator pays close attention to the personal and professional integrity of its directors and key personnel. Under MSO licensing practice, all individuals who exercise significant influence over the operator’s activities—including directors, beneficial owners, and the Compliance and AML Officers—must meet the “fit and proper person” criterion. This means they must be trustworthy, competent, and of good ethical standing. 1. Impeccable Business and Legal Reputation Applicants must not have: Criminal convictions, particularly for financial crimes such as money laundering, fraud, or tax evasion; Outstanding charges or ongoing investigations by law enforcement authorities; A history of disqualification as a company director in any jurisdiction; Verified involvement in suspicious or illicit financial schemes. The Customs and Excise Department conducts thorough screening using international databases, including World-Check and its own internal sources. 2. Professional Competence and Relevant Experience This is particularly important for individuals responsible for operations and compliance: Possession of practical experience in remittance services, money changing, or related financial sectors; Understanding of AML/CFT principles, including KYC procedures, transaction screening, and reporting of suspicious activity; Knowledge of the requirements under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615). Formal education (e.g., in finance, law, or compliance) is welcomed but does not replace relevant practical experience. 3. Absence of Conflicts of Interest Directors and key personnel must: Not hold undisclosed financial interests in competitor companies or counterparties; Not occupy positions that could interfere with the objective performance of their duties within the MSO; Disclose any potential conflicts of interest when submitting the licence application. 4. Reliability and Personal Integrity These qualities are assessed based on: References from previous employers or business partners; Completeness and accuracy of information provided in application forms and supporting documents; Conduct during any interview with a representative of the regulator. Any attempt to conceal information or submit false or misleading statements may result in licence refusal. Important: The regulator reviews not only current but also former directors and beneficial owners from the past 3–5 years. Even if an individual has resigned from management prior to the application, their background may still influence the licensing decision. The “fit and proper” assessment is not a mere formality—it is a critical component of the licensing process. The presence of even a single adverse factor listed above may serve as grounds for refusing to grant a licence or for revoking an already issued one. <img loading="lazy" decoding="async" width="504" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong-504x1024.webp" alt="" class="wp-image-15563" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong-504x1024.webp 504w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong-148x300.webp 148w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong-768x1559.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong-756x1536.webp 756w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong-1009x2048.webp 1009w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong-74x150.webp 74w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong.webp 1212w" sizes="auto, (max-width: 504px) 100vw, 504px" /> Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615, AMLO), the Hong Kong Customs and Excise Department (C&ED) may grant or renew a Money Service Operator (MSO) licence only if all key individuals associated with the applicant meet the “fit and proper person” criterion—meaning they are reliable, competent, and of good ethical standing. Who is subject to this assessment? The scope of individuals reviewed depends on the applicant’s legal structure: If the applicant is an individual: the applicant themselves and all ultimate beneficial owners are assessed. If the applicant is a partnership: all partners and ultimate beneficial owners are assessed. If the applicant is a corporation: all directors and ultimate beneficial owners are assessed. Who is considered an ultimate beneficial owner (UBO)? An ultimate beneficial owner is a natural person who ultimately owns or controls the business, even if not formally named in official documents. For an individual applicant: The natural person who ultimately owns or controls the individual’s MSO business; or The person on whose behalf the individual is acting (e.g., in cases of nominee or trust arrangements). For a partnership: A person is considered a UBO if they: Own or control more than 25% of the capital or profit share; Hold more than 25% of voting rights in decision-making; Exercise ultimate control over the management or operations of the partnership. For a corporate applicant: An ultimate beneficial owner (UBO) is a natural person who: Holds more than 25% of the company’s shares, whether directly, through trusts, or other intermediate structures; Controls more than 25% of the voting rights at general meetings; Exercises de facto control over the company’s management or operations. Even if ownership is structured through intermediate companies, trusts, or nominee shareholders, the Customs and Excise Department (C&ED) requires full disclosure of the true beneficial owner(s). Such complex ownership arrangements typically complicate and prolong the licence application review process. <img loading="lazy" decoding="async" width="932" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-who-undergoes-the-check-when-applying-for-an-mso-licence-in-hong-kong_-932x1024.webp" alt="" class="wp-image-15564" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-who-undergoes-the-check-when-applying-for-an-mso-licence-in-hong-kong_-932x1024.webp 932w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-who-undergoes-the-check-when-applying-for-an-mso-licence-in-hong-kong_-273x300.webp 273w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-who-undergoes-the-check-when-applying-for-an-mso-licence-in-hong-kong_-768x844.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-who-undergoes-the-check-when-applying-for-an-mso-licence-in-hong-kong_-1398x1536.webp 1398w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-who-undergoes-the-check-when-applying-for-an-mso-licence-in-hong-kong_-137x150.webp 137w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-who-undergoes-the-check-when-applying-for-an-mso-licence-in-hong-kong_.webp 1598w" sizes="auto, (max-width: 932px) 100vw, 932px" /> Premises Registration Requirements for MSO Licensing in Hong Kong According to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615, AMLO), Money Service Operators (MSOs) must specify “particular premises” in their licence application if such premises are used to carry on their business. But what exactly qualifies as “particular premises,” and when is their registration mandatory? “Particular premises” are physical locations in Hong Kong where you actually conduct money changing and/or remittance services as a commercial activity. Such premises include: Spaces specifically occupied by you for conducting MSO activities; Addresses publicly advertised as customer service points (e.g., with signage); Premises under your continuous control—as a tenant or owner. Locations are not considered “particular premises” if you only visit them temporarily (e.g., a restaurant, bank, or the office of an accountant or lawyer) solely to complete paperwork, without providing financial services to clients on-site. If you operate without a fixed office—for example, remotely via mobile devices or through on-site client visits—you must still provide the following three mandatory details in your application: A Local Management Office (LMO); A correspondence address; A Local Place for Storage (LPS) for accounting and operational records. Requirements for “particular premises” In addition to formal registration, the Customs and Excise Department (C&ED) assesses the suitability of the premises from the standpoint of legality, transparency, and consumer protection. Acceptable premises: Must be readily accessible to C&ED inspectors without obstruction; May be located in mixed-use (commercial/residential) buildings, provided written consent from all residents is obtained for inspections. Unacceptable premises: Premises located in purely residential buildings; Addresses already used by another MSO or listed in another licence application; Spaces accessible only through the office of a third-party company; Premises with signage displaying a business name that does not match the name on the Business Registration Certificate (BRC). <img loading="lazy" decoding="async" width="384" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/6.-particular-premises-for-mso-licensing-in-hong-kong-384x1024.webp" alt="" class="wp-image-15565" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/6.-particular-premises-for-mso-licensing-in-hong-kong-384x1024.webp 384w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/6.-particular-premises-for-mso-licensing-in-hong-kong-113x300.webp 113w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/6.-particular-premises-for-mso-licensing-in-hong-kong-768x2048.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/6.-particular-premises-for-mso-licensing-in-hong-kong-576x1536.webp 576w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/6.-particular-premises-for-mso-licensing-in-hong-kong-56x150.webp 56w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/6.-particular-premises-for-mso-licensing-in-hong-kong-scaled.webp 960w" sizes="auto, (max-width: 384px) 100vw, 384px" /> What is a Local Management Office (LMO)? The LMO is a physical office in Hong Kong that serves as: The primary point of contact for the Customs and Excise Department (C&ED) (in person and by phone), The official address for receiving regulatory notices and correspondence, The workplace for key personnel, such as the director, owner, or Compliance Officer. Important: A residential address cannot be used as an LMO. The address of an accounting, legal, or secretarial firm is not acceptable. The property owner must provide written consent for the premises to be used for MSO activities (included in the lease agreement or a separate letter). Failure to include a valid LMO in the application renders it invalid. Non-compliance after licence issuance may result in suspension or revocation of the licence. Local Place for Storage (LPS) All operational and financial records must be kept at a dedicated physical location in Hong Kong that is accessible to C&ED inspections. LPS requirements are similar to those for the LMO: Must not be a residential address or the address of a third-party service provider; Must be under the direct control of the licensee; Requires written permission from the landlord. Failure to provide valid LPS details will lead to refusal of the licence application or, if discovered post-issuance, to cancellation of the licence. <img loading="lazy" decoding="async" width="786" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps-786x1024.webp" alt="" class="wp-image-15566" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps-786x1024.webp 786w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps-230x300.webp 230w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps-768x1000.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps-1179x1536.webp 1179w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps-1573x2048.webp 1573w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps-115x150.webp 115w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps.webp 1598w" sizes="auto, (max-width: 786px) 100vw, 786px" /> Additional Requirements If multiple business activities are conducted in the same premises, MSO operations must be clearly segregated from other businesses. Shared use of premises with another MSO is prohibited. When operating from a mixed-use (commercial/residential) building, written consent from all residents is required to allow C&ED inspectors entry. Liability for Incomplete or False Information Under Section 52(2) of the AMLO, knowingly or negligently omitting material information—including details about premises—in a licence application constitutes a criminal offence. Penalty: a fine of up to HK$50,000 and imprisonment for up to 6 months. <img loading="lazy" decoding="async" width="904" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/8.-key-rules-904x1024.webp" alt="" class="wp-image-15567" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/8.-key-rules-904x1024.webp 904w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/8.-key-rules-265x300.webp 265w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/8.-key-rules-768x870.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/8.-key-rules-132x150.webp 132w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/8.-key-rules.webp 1212w" sizes="auto, (max-width: 904px) 100vw, 904px" /> Registration of “particular premises” is not a mere formality—it is a key element in establishing regulatory trust. Even with a remote business model, you must maintain a physical connection to Hong Kong through a Local Management Office (LMO) and a Local Place for Storage (LPS). Only by fulfilling these requirements can you successfully obtain an MSO licence and mitigate future compliance risks. When applying for a licence to operate from a specific premises, you must attach at least two photographs (102 mm × 152 mm, 4R size) to the application form. Photo requirements: One photo must show the interior of the premises (e.g., the service counter or customer-facing area). The other photo must show the exterior of the premises (e.g., the company signage or storefront). If the applicant also uses separate premises designated as the LPS and/or LMO, a separate set of two photographs must be submitted for each such location. The photo requirements for LPS and LMO premises are identical to those for the main operational premises. MSO Business Plan The regulator assesses every aspect of your business through the lens of anti-money laundering and counter-terrorist financing (AML/CFT). Therefore, your business plan must be more than just a description of your business idea or financial projections—it must also demonstrate your operational and compliance readiness. The likelihood of a positive review depends directly on how complete your submission is and your ability to prove that your company is prepared and capable of meeting all legal and regulatory requirements. Your business plan must cover the following: Company identification State the legal and trading name, website address, and any registered trademark or logo that will be used to promote the business. Corporate history and source of capital Describe the background of the applicant company and the sources of its initial and operational capital. Clearly disclose whether the company is linked to other legal entities or holding structures, and if so, explain the nature of that control or affiliation. Key management personnel Provide detailed profiles of senior executives, including citizenship, professional experience, education, and relevant qualifications. This is critical for assessing their integrity and competence. Management structure Clearly indicate the legal and actual address where key business decisions are made. If the company has back-office functions (in Hong Kong or abroad), describe their roles and locations in detail. Target customer base Give a detailed description of your intended clients: their expected geographic location, nationality, and how you will attract and interact with them. Nature of operations in Hong Kong Clearly explain which specific activities will be carried out in Hong Kong and justify the need for a local licence. The description must cover the entire transaction cycle—from receiving a customer’s instruction to processing the transfer, movement of funds, compliance functions, accounting, and record storage. Service Delivery Channels List all planned services (money changing, remittance) and their intended launch schedule. Provide a detailed operational model for each service, including all delivery channels, order processing procedures, and the flow of funds through foreign agents or partners. If third-party providers are involved, submit their details and copies of relevant agreements. Pay special attention to measures protecting client funds against counterparty default risks. Bank Accounts Provide full details of all bank accounts to be used for the business (account numbers and account holders). The use of third-party accounts is strictly prohibited. If your business model does not involve opening a bank account, provide a comprehensive explanation of how services will be delivered without one. Financial Projections Submit justified forecasts of expected profitability and transaction volumes for each service over the next two years, along with an estimate of working capital required for day-to-day operations. Organisational Structure Local: Describe the group of companies in Hong Kong (parent company, branches, subsidiaries), their jurisdictions, and functions. Attach an organisational chart with a brief description of each entity’s role. International: Similarly disclose the structure of the international group to which the applicant belongs, including an organisational chart and descriptions. Business Premises If office space is shared with other businesses (including those not owned by the applicant), disclose their nature. Clarify whether these third-party businesses are owned or managed by the applicant’s directors or employees, and whether any business relationships exist with them. Local Human Resources Detail the structure of both management and operational staff: total headcount, positions, areas of responsibility (including compliance and suspicious transaction reporting duties), employment status (full-time/part-time), and reporting lines. Outsourcing Specify the names and scope of any outsourced services related to AML/CFT (e.g., external audit, engagement of specialised intermediaries). IT Systems Describe the computer systems in use, including commercial software and databases employed for automated AML/CFT monitoring and sanctions screening. Agency and Principal Relationships If the applicant acts as an agent or principal for other local MSOs or foreign companies, provide their names and a detailed description of the functions performed in that capacity. Other Business Relationships If the business relies on third-party payment platforms (e.g., digital wallets), explain their role in the operational model. If cash transportation (within Hong Kong or across borders) is involved, specify the companies or individuals responsible for it. Other Regulatory Oversight Indicate whether the applicant or its international group is subject to supervision by other regulators (e.g., holds financial licences in other jurisdictions). If so, name the relevant regulatory authorities. Important Legal Obligation As part of the business plan, the applicant must provide a written declaration confirming that they understand and undertake to comply with the legal requirement under the AMLO: any changes to the information submitted to the Commissioner of Customs and Excise for the purpose of obtaining or renewing an MSO licence must be reported in writing within one month of the change. Failure to comply or providing incomplete information may result in delays or rejection of the application. Thus, a thoroughly prepared business plan is not a mere formality—it is a strategic document that builds regulatory trust and lays a solid foundation for the legal and sustainable operation of your financial business in Hong Kong. <img loading="lazy" decoding="async" width="593" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan-593x1024.webp" alt="" class="wp-image-15568" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan-593x1024.webp 593w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan-174x300.webp 174w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan-768x1326.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan-890x1536.webp 890w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan-1186x2048.webp 1186w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan-87x150.webp 87w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan.webp 1440w" sizes="auto, (max-width: 593px) 100vw, 593px" /> Regulatory and Operational Requirements for an MSO License in Hong Kong To obtain and maintain a Money Service Operator (MSO) licence, a company must implement a robust compliance system that meets the requirements of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) and the guidelines issued by the Customs and Excise Department (C&ED)—the MSO regulator in Hong Kong. 1. Implementation of an AML/CFT System The company must develop and maintain an internal anti-money laundering and counter-terrorist financing policy, including: Customer identification procedures (KYC); Ongoing transaction monitoring; A mechanism for detecting and promptly reporting suspicious transactions to the Joint Financial Intelligence Unit (JFIU); Regular staff training. 2. Strict KYC Policy Before commencing a business relationship, the operator must: Verify the client’s identity (for individuals — passport or identity card; for legal entities — certificate of incorporation, register extract, and beneficial ownership details); Establish the source of funds and the purpose of the transaction; Retain all KYC documents for at least 6 years after the termination of the business relationship. 3. Personal Data Protection Processing of client information must comply with the Personal Data (Privacy) Ordinance (PDPO, Cap. 486). This includes: Restricting access to personal data; Encrypting data during storage and transmission; Notifying affected individuals and authorities in the event of a data breach. 4. Reporting and Inspections After licence issuance, the company is required to: Submit an annual licence confirmation to the C&ED; Provide any requested information promptly upon demand; Undergo scheduled and unscheduled inspections. Failure to comply may result in a fine of up to HKD 100,000, imprisonment for up to 2 years, or licence revocation. 5. Financial Transparency MSOs must undergo mandatory auditing, like any other company. In addition to the standard financial audit, a separate AML audit is also required. Important: Merely having a formal policy in place is not enough—the regulator assesses whether procedures are actually implemented and followed in practice. <img loading="lazy" decoding="async" width="610" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-610x1024.webp" alt="" class="wp-image-15582" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-610x1024.webp 610w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-179x300.webp 179w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-768x1290.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-915x1536.webp 915w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-1219x2048.webp 1219w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-89x150.webp 89w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-scaled.webp 1524w" sizes="auto, (max-width: 610px) 100vw, 610px" /> MSO License Application Process in Hong Kong Key Steps to Apply for an MSO Licence The process of obtaining a Money Service Operator (MSO) licence in Hong Kong consists of several stages, each requiring thorough preparation and accuracy. Applications are submitted to the Hong Kong Customs and Excise Department (C&ED), which is the regulatory authority for this sector. Steps to Apply for an MSO Licence Preliminary Preparation Before submitting an application, ensure the company meets all legal requirements, including: Business registration in Hong Kong; Preparation of financial documents demonstrating solvency; Establishment of an appropriate organisational structure with qualified personnel; Development and implementation of KYC (Know Your Customer) policies and AML/CFT procedures. Submitting the Application to the Hong Kong Customs and Excise Department The licence application must be submitted either through the official e-application portal or in hard copy. The submission process may vary depending on the chosen format. The applicant must provide all required documents and demonstrate its eligibility. Documents Required for an MSO Licence Application in Hong Kong 1. Corporate Documents Articles of Association Form NNC1 (Incorporation Form) or NAR1 (Annual Return) Certificate of Incorporation Business Registration Certificate (BRC) clearly indicating the business nature as “money changing” and/or “money remittance” Documents appointing directors and company secretary Lease agreement for a commercial office in Hong Kong (residential addresses are not accepted) 2. Information on Management and Key Personnel CV and brief biography of each director, beneficial owner, and key staff member (including the Compliance Officer and AML Officer) Evidence of professional experience in finance, AML/CFT, or related fields Documents confirming the absence of criminal convictions and director disqualifications 3. Financial Documents Audited financial statements (balance sheet, profit and loss account) for the most recent completed financial year Proof of source of capital and liquidity (bank statements, investment agreements, etc.) 12-month cash flow forecast 4. Compliance Policies and Procedures AML/CFT policy, including: KYC and Customer Due Diligence (CDD) procedures Screening of customers and transactions against sanctions lists Monitoring of suspicious activity Internal reporting procedures and notifications to the JFIU Personal data protection policy in compliance with the PDPO (Cap. 486) 5. Operational Documents Description of business processes: how remittance and/or money changing services will be conducted Diagram or description of banking relationships and fund flows Technical cybersecurity and data protection measures 6. Business Plan Description of target customers, geographic scope of operations, and expected transaction volumes Justification for choosing Hong Kong as the licensing jurisdiction Marketing and partnership strategy 7. Bank Confirmation A letter from a bank confirming its willingness to open a corporate account for MSO activities. Preferred: issued by a licensed Hong Kong bank If the bank is outside Hong Kong: a clear justification must be provided explaining why transactions will be processed through a foreign bank despite holding a Hong Kong MSO licence Important: All documents must be submitted in English or Chinese. Non-residents must provide notarised translations of any documents originally in another language. <img loading="lazy" decoding="async" width="437" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-437x1024.webp" alt="" class="wp-image-15579" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-437x1024.webp 437w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-128x300.webp 128w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-768x1799.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-656x1536.webp 656w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-874x2048.webp 874w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-64x150.webp 64w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-scaled.webp 1093w" sizes="auto, (max-width: 437px) 100vw, 437px" /> Application Submission via the Official Portal The application for a Money Service Operator (MSO) licence must be submitted exclusively online through the e-Services Portal of the Hong Kong Customs and Excise Department (C&ED). After successful submission, the system automatically: Generates an application reference number; Sends a confirmation of receipt to the provided email address; Displays estimated processing timelines (typically 30–60 working days, though this may be extended if additional information is requested). Important: Applications can only be submitted once the full set of required documents is ready. Incomplete or partially filled applications will not be accepted for review. Submission of Additional Materials During the review process, the C&ED may request: Clarifications regarding the business model or operational procedures; Additional evidence of financial soundness; Proof of qualifications of key personnel; Other supporting documents It is recommended to designate a responsible contact person to communicate promptly with the regulator and monitor the application status via the e-Services Portal. Steps to Apply for an MSO Licence Step Action Details 1 Preliminary Preparation Register the company in Hong Kong (including obtaining a Business Registration Certificate (BRC) specifying “money remittance” and/or “money changing”)Lease a commercial office—non-residential premises suitable for the scale of operationsDevelop internal policies: AML/CFT policyKYC/CDD proceduresPersonal data protection policy Assemble the team: Appoint directors and beneficial owners who meet the “fit and proper” criteriaHire a Compliance Officer and AML Officer with verified experience Obtain bank confirmation—a letter from a bank confirming willingness to open a corporate account for MSO activities (preferably from a Hong Kong-licensed bank)Select and finalise software systems.Prepare a comprehensive business plan 2 Application Submission Submit the complete application package via the official C&ED e-Services Portal (as of 2026, paper applications are no longer accepted)All key individuals (directors, beneficial owners, Compliance Officer) must pass the “fit and proper” assessmentReceive an automated confirmation of submission and an application reference number 3 Submission of Additional Materials If requested, provide supplementary information (e.g., clarifications on business model, KYC/AML systems, operational geography, customer segments, risk policies, etc.) Be prepared for possible requests for interviews or further explanations regarding operational procedures 4 Licence Issuance or Refusal • If approved, the MSO licence is issued for a period of 2 years MSO Licensing Fees in Hong Kong: Current Rates for 2025–2026 When applying for the issuance, renewal, or amendment of a Money Service Operator (MSO) licence in Hong Kong, applicants must pay fixed government fees set by the Customs and Excise Department (C&ED). All fees are denominated in Hong Kong dollars (HKD) and are non-refundable, even if the licence application is rejected. Below is the official fee schedule effective for 2025–2026: Initial Licence Application • Base licence fee: HKD 3,310 • For each additional business premises: HKD 2,220 • For each individual undergoing the “fit and proper” check (directors, partners, ultimate beneficial owners): HKD 860 Example: For a corporation with 2 directors, 1 beneficial owner, and 1 office, the total amount will be: 3 310 + (3 × 860) = HKD 5 890 Licence renewal • Base renewal fee: HKD 790 • For each additional premises: HKD 355 • For each individual undergoing a renewed “fit and proper” check: HKD 860 Note: Even if there are no changes in management, C&ED may require reconfirmation of the “fit and proper” status for all key individuals. Changes to composition or structure • Appointment of a new director, partner, or ultimate beneficial owner: HKD 860 per individual • Addition of a new business premises: HKD 2,220 per premises • Registration of “particular premises” for MSO activities: HKD 2,220 per premises Important to note All payments must be made before submitting the application via the official C&ED payment gateway. Fees do not include costs for legal advisory services, notarisation, or document preparation. Applications will not be processed in case of incomplete payment or incorrect payment details. <img loading="lazy" decoding="async" width="977" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/12.-mso-licence-fees-in-hong-kong-2025-2026-977x1024.webp" alt="" class="wp-image-15576" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/12.-mso-licence-fees-in-hong-kong-2025-2026-977x1024.webp 977w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/12.-mso-licence-fees-in-hong-kong-2025-2026-286x300.webp 286w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/12.-mso-licence-fees-in-hong-kong-2025-2026-768x805.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/12.-mso-licence-fees-in-hong-kong-2025-2026-1465x1536.webp 1465w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/12.-mso-licence-fees-in-hong-kong-2025-2026-143x150.webp 143w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/12.-mso-licence-fees-in-hong-kong-2025-2026.webp 1598w" sizes="auto, (max-width: 977px) 100vw, 977px" /> Rights and Obligations of a Licensed MSO in Hong Kong Obtaining a Money Service Operator (MSO) licence is not the end of the process, but the beginning of ongoing compliance with strict regulatory requirements. The licence is issued for 2 years and requires annual confirmation. Failure to meet obligations may result in fines, suspension, or full revocation of the licence. 1. Ongoing Legal Obligations Continuous AML/CFT Compliance The company must maintain a fully operational and up-to-date anti-money laundering and counter-terrorist financing system in accordance with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) and the guidelines issued by the Customs and Excise Department (C&ED). Timely Notification of Changes Any changes to: The composition of directors or beneficial owners, Office address, Business model or geographic scope of operations, Appointment of the Compliance Officer must be reported to C&ED within 14 days via the e-Services Portal. Inspections C&ED has the authority to conduct scheduled and unscheduled inspections, including on-site office visits, requests for records, and interviews with staff. 2. AML/CFT Requirements: What Must Be Implemented in Practice KYC and CDD (Customer Due Diligence) Verify identity before the first transaction (passport for individuals; register extract + UBO details for legal entities) Establish the purpose and source of funds Apply Enhanced Due Diligence (EDD) for customers from high-risk jurisdictions or Politically Exposed Persons (PEPs) Monitoring and Reporting Conduct ongoing screening of transactions for suspicious activity. Immediately report suspicious transactions to the Joint Financial Intelligence Unit (JFIU) — within 24 hours of detection. Maintain a log of all checks and decisions. Keep customer files up to date at all times. Staff Training Mandatory AML/CFT training for all staff — at least once per year. Document training sessions and conduct knowledge assessments. Technical Measures Use appropriate software for KYC, transaction monitoring, and data storage. Ensure cybersecurity and protection against unauthorised access. Record Keeping Retain all KYC data, transaction records, and internal reports for at least 6 years, as required under Cap. 615. 3. Risk Management (Risk-Based Approach) The company must implement a formal risk assessment system, including: Customer risk classification (low / medium / high); Assessment of operational jurisdictions (taking into account FATF “grey” and “black” lists); Monitoring of large and unusual transactions (e.g., transactions exceeding HKD 8,000 without a clear purpose). 4. Reporting and Audit Annual licence confirmation — submitted via the e-Services Portal; Suspicious Activity Reports (SARs) — filed with the JFIU without delay; Mandatory annual audit and Profits Tax Return; AML/CFT audit (upon regulator’s request) — conducted by an independent consultant with experience in financial compliance. 5. Licensee Rights Conduct remittance and/or money changing activities within Hong Kong; Use the status of a licensed MSO to build trust with banks and partners; Seek clarifications from C&ED on the application of regulatory requirements. Risks Associated with MSO Activities in Hong Kong and Mitigation Strategies Money Service Operators (MSOs) operate in one of the most heavily regulated and high-risk segments of the financial sector. Even with a valid licence, a company remains exposed to operational, legal, financial, and reputational threats. Successful business operations require not only compliance with formal requirements but also proactive risk management. Key Risks for MSOs Money Laundering and Terrorist Financing Risks (AML/CFT) This is the primary and systemic risk for any MSO. As a FATF-member jurisdiction, Hong Kong maintains a zero-tolerance approach toward inadequate compliance. Even a single undeclared suspicious transaction may result in licence revocation. 2. International Operations Risks When serving clients from different countries, the following risks arise: Jurisdictional conflicts (e.g., EU/U.S. sanctions targeting third countries); Foreign exchange risks (sharp currency fluctuations during large transfers); Reputational risks from dealing with clients based in FATF “grey-listed” jurisdictions. 3. Fraud and Insider Threats External fraud: forged documents, “drop accounts,” social engineering; Internal misconduct: unauthorised transfers, manipulation of KYC data, collusion with clients. 4. Technology and Cyber Risks Data breaches, hacking of payment systems, or failure of AML monitoring software can all lead to non-compliance with the PDPO (Cap. 486) and AML requirements. 5. Consequences of Non-Compliance: Actual Penalties Violation Possible consequences Absence or merely formal implementation of an AML/CFT policy Fine of up to HKD 1,000,000 and/or imprisonment for up to 2 years (Section 5A, Cap. 615) Failure to submit a Suspicious Activity Report (SAR) Depending on the circumstances. Maximum penalty: licence revocation + criminal liability Providing false information in the application Licence refusal + prohibition on reapplying for 6–12 months Late notification of changes Fine of up to HKD 50,000 + licence suspension, depending on the circumstances Sanctions-related risks Closure of clearing bank accounts Risk Mitigation StrategiesProactive AML/CFT Controls Proactive AML/CFT Controls • Implement a dynamic KYC system with automatic client data updates • Use AI-powered screening against sanctions lists (OFAC, UN, EU, HKMA) • Configure transaction monitoring rules to flag anomalous activity (e.g., frequent transfers just below reporting thresholds) Geographic Risk Management • Maintain an internal “blacklist” of high-risk countries (even beyond FATF lists) • Apply Enhanced Due Diligence (EDD) for clients from such jurisdictions • Impose transaction volume limits for dealings with Politically Exposed Persons (PEPs) Fraud Prevention Measures • Enforce two-factor authentication for all transactions • Segregate duties: one staff member verifies the client, another authorises the transfer • Conduct regular internal audits and “penetration tests” (e.g., simulated fraud attempts) Technological Resilience • Store data in encrypted cloud systems with regular backups • Conduct quarterly penetration tests and keep software up to date • Comply with ISO/IEC 27001 standards where feasible Obligations for Data and Licence Updates • Annual licence confirmation: MSO licences are valid for 2 years but require annual renewal • Submit updated information via the C&ED e-Services Portal at least 30 days before expiry • Mandatory notifications of changes within 14 calendar days of occurrence: Changes in directors, beneficial owners, or Compliance Officer Office address change Business model changes (e.g., adding money changing services) Change of servicing bank Financial Information Updates • Update cash flow forecasts in case of significant increase or decrease in transaction volumes • Submit new supporting documents if the source of capital changes Monitoring Regulatory Changes Hong Kong regularly updates its regulatory framework in line with FATF recommendations. Companies are required to: Appoint a responsible person for tracking regulatory updates (typically the Compliance Officer); Subscribe to official alerts from C&ED, HKMA, and JFIU; Conduct quarterly reviews of internal policies to ensure alignment with new requirements; Implement necessary changes within 30 days of the effective date of any amendments. Successful MSO operations in Hong Kong are not just about holding a licence—they require a state of constant readiness for inspection. The regulator assesses not only documentation but also the company’s actual compliance culture. Those who invest in transparency, technology, and staff training gain more than just protection from penalties—they earn the trust of banks, partners, and clients. Trading Agent or Money Service Operator? Hong Kong law—specifically the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615, AMLO)—does not establish a formal legal distinction between intermediary (agency) activities and money remittance services. Yet it is precisely this grey area that poses significant risks for businesses, as the correct classification of an activity directly determines whether an MSO licence is required. The following represents our own analysis of the relevant legal provisions. It does not claim to be definitive, nor does it substitute for the official interpretation by competent authorities. This is our personal opinion based on a review of the law. What is agency in the classical sense? A genuine trading agent never takes ownership or possession of the client’s funds. Their role is limited to: Facilitating the conclusion of a contract between buyer and seller; Representing the interests of one party under an agency agreement; Receiving a fixed fee or commission for the service rendered. In a classical agency arrangement, the payment (i.e., the contract amount) flows directly from the client to the supplier. The agent acts solely as a coordinator and does not handle the principal transaction amount—neither in full nor in part. When Does a Pumpkin Turn into a Carriage? Or: When Does a Trading Agent Become a Money Service Operator? If your business model involves the following: Receiving the full payment amount from an overseas client into your corporate bank account, Converting the currency (e.g., USD → CNY or HKD), Transferring the funds to the ultimate beneficiary while retaining your commission, —and you do this systematically and for commercial purposes (on behalf of multiple companies or individuals)—then you are, in fact, providing a remittance service as defined under Section 2 of the AMLO: “Remittance service means a business of sending, receiving, or arranging for the sending or receipt of money into or from outside Hong Kong.” In this context, the type of contract (agency, service, partnership, etc.) has no legal bearing on the classification of the activity. A trading agent may remain a trading agent—and simultaneously engage in two distinct types of activity: Agency services – arranging deals and representing clients’ interests; Payment services – receiving, converting, and redirecting funds. In such a case, the agency function is governed by general civil and contractual law, while the payment function falls under the scope of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615, AMLO) and requires an MSO licence—but only for the remittance component of the business. Thus, the company does not “cease to be an agent” but rather expands the scope of its activities, part of which becomes subject to specific licensing requirements. The key is to clearly separate these functions—operationally, contractually, and in accounting practices—to avoid commingling and ensure full compliance with regulatory requirements. What are the consequences of operating without an MSO licence? It is impossible to precisely predict how likely it is that your activity will be reclassified as a remittance service—this depends on numerous factors, including the number of complaints from affected parties, the scale and volume of unlicensed operations, and the regulator’s current enforcement priorities. Moreover, only the competent authorities—primarily the Hong Kong Customs and Excise Department (C&ED)—have the authority to assess this risk, typically during inspections or when investigating complaints. However, the legal consequences of operating without an MSO licence are clearly defined by law. Under Section 5(1) of the AMLO (Cap. 615), carrying out a remittance service without a valid MSO licence constitutes a criminal offence, punishable by: Imprisonment for up to 2 years, A fine of up to HK$1,000,000. Operational sanctions may also include: Freezing or closure of corporate bank accounts, Suspension or cancellation of business registration, Prohibition from conducting commercial activities in Hong Kong. Moreover, if serious violations of anti-money laundering and counter-terrorist financing (AML/CFT) legislation occurred during operations—for example, intentional concealment of the source of funds, disregard of suspicious transactions, or absence of KYC procedures—the penalties may be significantly aggravated. In such cases, the regulator is entitled to: Initiate criminal proceedings under Sections 5(5)–5(8) of the AMLO; Impose additional fines for each breach of AML obligations; Refer the case to the Joint Financial Intelligence Unit (JFIU) and the police for investigation into potential money laundering offences, potentially invoking the Organised and Serious Crimes Ordinance (Cap. 455). Even if the unlicensed activity was conducted “in good faith” or on a “temporary” basis, the mere presence of characteristics of a remittance service—without a valid MSO licence—renders the company vulnerable to complete operational shutdown and criminal prosecution. This approach eliminates speculation about likelihoods and instead focuses on clear legal consequences, enabling businesses to make decisions based on the mitigation of real, not hypothetical, risks. What to do if your business model is close to an MSO? Conduct an independent legal review of your operational structure. If the activities show signs of remittance services, the licensing process should be initiated before operations commence. In contracts and internal documentation, clearly separate: Agency functions (deal facilitation), Payment functions (movement of funds). The key principle of the C&ED: If you temporarily hold third-party funds for the purpose of onward transfer, you are a money service operator—regardless of your company’s name or how your contracts are worded. Frequently Asked Questions (FAQ) Who needs an MSO licence in Hong Kong? An MSO licence is required for companies engaged in money changing or remittance services to operate legally and comply with financial regulatory standards. Do I need an MSO licence if my company transfers money only for its own purposes? No, provided the transfers are not offered to third parties. An MSO licence is mandatory only for commercial activities—i.e., when you charge fees to exchange currency or transfer money on behalf of clients. Internal transfers within your corporate group (e.g., between parent and subsidiary) do not require a licence. How long does it take to obtain an MSO licence in Hong Kong? On average, 6 to 9 months. The timeline depends on: • Completeness and quality of the submitted application; • Need for clarifications from C&ED; • Complexity of the business model (e.g., international operations involving high-risk jurisdictions); • Beneficial owners; • Confirmation from a local bank. Can I apply for an MSO licence without a physical office in Hong Kong? No. A physical commercial office is mandatory. C&ED requires a valid lease agreement for non-residential premises in Hong Kong. Residential addresses, virtual offices, or mailbox-style addresses are not accepted. The regulator may conduct unannounced inspections to verify that the office is actively used for business. What happens if I operate without an MSO licence? You face severe penalties. Under Cap. 615, unlicensed MSO activity may result in: • A fine of up to HKD 1,000,000; • Imprisonment for up to 2 years; • Freezing or closure of bank accounts; • Termination of banking services, as banks typically cease servicing entities engaged in unlicensed MSO activities. Ask a question
Hong Kong Residence Permit Through Employment: Professional Advice and Common Mistakes
Working and living in Hong Kong attracts many foreigners due to the developed economy, high standards of living and the international status of the SAR. However, for legal work and long-term stay, a work visa is required, which subsequently opens the door to a permanent residence permit (PR). In this article, we explain in detail each step of the application, requirements and advice on obtaining a visa, as well as analyze common mistakes to avoid.
Working and living in Hong Kong attracts many foreigners due to the developed economy, high standards of living and the international status of the SAR. However, for legal work and long-term stay, a work visa is required, which subsequently opens the door to a permanent residence permit (PR). In this article, we explain in detail each step of the application, requirements and advice on obtaining a visa, as well as analyze common mistakes to avoid. Main types of work visas in Hong Kong Hong Kong offers several work visa programs depending on the applicant’s qualifications and professional experience. Each program has its own characteristics, and choosing the right one depends on income level, citizenship, education and a number of other factors. Familiarization with the main programs will help you understand which visa is best for you. Below are the main categories of work visas and their requirements. General Employment Policy (GEP) The program is designed for highly qualified and experienced professionals. GEP requires an offer from a Hong Kong company and allows for a stay of 36 months with the possibility of extension. The employer must provide evidence that the salary offered is in line with market standards, and the candidate has unique experience or knowledge that cannot be found in the local market. GEP has no quotas and is not tied to any sector. This entry procedure does not apply to: Nationals of China residing on the mainland; and Nationals of Afghanistan, Cuba and Korea (Democratic People’s Republic of). Mainland China Specialist Visitor Program (ASMTP) ASMTP targets skilled workers from mainland China, supporting key industries important to Hong Kong’s economy. To obtain an ASMTP visa, you must demonstrate relevant work experience and qualifications required for a specific position. Quality Migrant Admissions Scheme (QMAS) QMAS operates on a points system that evaluates parameters such as education, professional experience and language skills. The program is designed for highly qualified specialists who can contribute to the development of Hong Kong. The advantage of QMAS is the ability to obtain a visa without being tied to a specific employer.. Immigration Agreements for Graduates (IANG) The IANG is designed for graduates of Hong Kong and global universities and allows them to begin their careers without prior work experience. The visa is issued for up to three years and is renewable. Top Talent Placement Program (TTPS) TTPS is aimed at highly skilled individuals and is divided into three categories: Category A: Requires income of at least HK$2.5 million in the last year. Category B: A degree from a top university and at least three years of work experience. Category C: A degree from a top university and less than three years of work experience. Applicants in this category must take into account the limited annual quota. General requirements for obtaining a work visa under the GEP To obtain a work visa under the GEP you must: Have no problems with the law and safety. Have a higher education or high qualifications and experience. There must be a corresponding vacancy on the market. Pass the selection and receive a job offer that local specialists cannot satisfy. Have a salary and benefits at the level of market standards in Hong Kong. Have no problems with housing. Be able to easily pay for it from your salary or the employer must guarantee to provide it. Overseas Chinese nationals can apply if they have a permanent residence abroad or have lived there for at least one year prior to applying. “Overseas” refers to countries outside the Mainland, Hong Kong, Macau and Taiwan. Each application is assessed individually and the applicant must meet standard immigration requirements, such as holding a valid travel document and having a clean criminal record. GEP applicants can apply for entry for their spouses or partners if their marriage or partnership is officially recognized. Their stay will be the same as that of the sponsor. Extensions are possible if the conditions have not changed. Dependents can work or study in Hong Kong. Dependent children under 18 can also apply. This procedure does not apply to former Mainland Chinese residents in Macau and nationals of Afghanistan and North Korea. A common-law marriage can be recognized if it is officially registered and regulated by law. Applications take about four weeks to process after receiving all documents. Processing begins only after all necessary information has been provided. <img loading="lazy" decoding="async" width="634" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-634x1024.webp" alt="General requirements for obtaining a Hong Kong GEP work visa" class="wp-image-13941" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-634x1024.webp 634w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-186x300.webp 186w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-768x1239.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-952x1536.webp 952w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-1269x2048.webp 1269w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-93x150.webp 93w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-scaled.webp 1586w" sizes="auto, (max-width: 634px) 100vw, 634px" /> General requirements for obtaining a Hong Kong GEP work visa General Requirements for Obtaining a Work Visa under the Mainland Chinese Specialist Visitor Program (ASMTP) To obtain a work visa under the ASMTP program for specialists from mainland China, you must: Be a Mainland Chinese resident with unique skills that are needed in Hong Kong. Have no security issues or serious criminal record. Have a university degree in the required field or high qualifications and experience. Have a real vacancy and job offer that local specialists cannot fill. Receive a salary and benefits at the level of market standards in Hong Kong. The program has no quotas and is not limited by sectors. Applicants may also apply for entry for their spouses or partners, if their marriage or partnership is recognised. An application may also be made for dependent children under 18. To do this, you must: Prove a genuine relationship with the dependent. Have no recorded facts that would cause harm to the dependent. Provide the dependent with housing and funds above the subsistence minimum. These rules do not apply to former residents of mainland China in Macau and nationals of Afghanistan and North Korea. Dependents may stay in Hong Kong for the same period as their sponsors and may work or study. Applications for extension of stay will be considered if the conditions have not changed. Applications take approximately four weeks to process once all documents have been received. Processing will only begin once all required information has been provided. <img loading="lazy" decoding="async" width="677" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program-677x1024.webp" alt="General Requirements for Obtaining a Hong Kong Work Visa under the ASMTP Program" class="wp-image-13942" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program-677x1024.webp 677w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program-198x300.webp 198w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program-768x1161.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program-1016x1536.webp 1016w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program-1355x2048.webp 1355w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program-99x150.webp 99w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program.webp 1598w" sizes="auto, (max-width: 677px) 100vw, 677px" /> General Requirements for Obtaining a Hong Kong Work Visa under the ASMTP Program General requirements for obtaining a work visa under the Quality Migrant Admissions Program (QMAS) This program is designed to attract highly skilled and talented people to enhance Hong Kong’s economic competitiveness. Applicants do not need to have a job offer in Hong Kong before applying for the program. Successful applicants may bring their spouses, civil partners, or married partners if their status is officially recognized by the local authorities. Dependent children under 18 years of age may also be brought if the applicant is able to provide for their maintenance and housing without government assistance. The program does not apply to nationals of Afghanistan, Cuba, and Korea (Democratic People’s Republic of). Selection under the QMAS program Step 1: Prerequisites Candidates must first meet a number of prerequisites before proceeding to the next stage of assessment. These are: Applicant must be over 18 years of age Have a valid passport for international travel Have the ability to independently provide accommodation in Hong Kong Prove that they have the financial means to live in Hong Kong Have no legal problems Have a university degree or proven experience and achievements Step 2: Assessment Paths After completing the prerequisites, candidates can choose one of two tests: General test Achievement-based test. The General Test has 12 criteria, while the Achievement Test has two. There is a cut-off score for the General Test, and candidates are advised to assess their chances before applying. General test criteria: Age Applicant must be 50 years of age or younger. Master’s or PhD degree from a recognized university. Master’s or PhD degree must be in STEM (science, technology, engineering, or mathematics). Applicant must be bilingual, both spoken and written. Proficiency in English, both spoken and written, is mandatory. At least five years of work experience at the graduate or professional level. At least three years of experience in multinational companies or reputable enterprises such as The Global 2000, Fortune Global 500, and Hurun China 500 companies. At least three years of experience in the fields of innovation and technology, finance, or international trade. At least two years of international work experience at the graduate or professional level. Must have annual income of HK$1 million or more, or equivalent in foreign currency, in the year prior to application. Own a business with annual profits of HK$5 million or more, or equivalent in foreign currency, in the year prior to application. Own a listed company. General Test Pass Threshold To successfully pass the General Test, applicants must achieve 6 out of 12 possible points. This threshold allows applicants to apply through the online system. We recommend that candidates pre-assess their data to ensure that they meet the threshold. Please note that the threshold is subject to change without notice. Merit-Based Test The program is also open to individuals with exceptional talents and skills who can demonstrate outstanding achievement. For them, there is a separate merit-based test, with high requirements. Candidates who meet at least one of the criteria will be selected for further assessment by a panel. Applications that do not meet the criteria will be rejected. The assessment criteria include: Having received awards for exceptional achievements, such as an Olympic medal, Nobel Prize or other national/international awards.Признание работы заявителя коллегами или значительный вклад в развитие своей области, подтвержденный, например, наградой за достижения всей жизни. Stage 3: Qualifying Events Selection exercises are held regularly. Applicants who meet the prerequisites and pass the score (for the General Test) or one of the criteria (for the Attainment Test) are considered. Not all applications that meet the conditions will be accepted. Applications that meet more criteria have a greater chance of success. The Director of Immigration may seek advice from an assessment committee chaired by the Secretary for Labour and Welfare. The committee takes into account the needs of various sectors, the socio-economic needs of Hong Kong, and the background and qualifications of candidates. Selection is based on merit and individual circumstances. As processing of applications takes time, candidates may consider their applications pending until they receive notification of the result from the Immigration Department. Stage 4: Issuance of visa/entry permit Successful applicants will be issued a visa or entry permit in the form of an ‘e-Visa’ under the Hong Kong Residence Programme. <img loading="lazy" decoding="async" width="727" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program-727x1024.webp" alt="General requirements for obtaining a work visa in Hong Kong under the QMAS program" class="wp-image-13943" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program-727x1024.webp 727w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program-213x300.webp 213w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program-768x1082.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program-1090x1536.webp 1090w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program-1453x2048.webp 1453w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program-106x150.webp 106w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program.webp 1598w" sizes="auto, (max-width: 727px) 100vw, 727px" /> General requirements for obtaining a work visa in Hong Kong under the QMAS program General requirements for obtaining a work visa under the Immigrant Agreement for Graduates (IANG) program Applicants who are or have been overseas students (those who entered Hong Kong on a Student Visa or Entry Permit issued by the Director of Immigration) and have completed a full-time accredited bachelor’s degree or higher in Hong Kong may apply to stay or return and work in Hong Kong under the IANG programme. Also, graduates who have completed a full-time bachelor’s degree or higher in higher education institutions in the mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area jointly established by universities on the mainland and Hong Kong may apply to come and work in Hong Kong under the IANG programme. The IANG programme has no quotas and is not restricted to certain sectors. It does not apply to nationals of Afghanistan, Cuba and North Korea. For nationals of Laos, Nepal and Vietnam, the IANG only applies to those who: a) Has completed a bachelor’s degree or higher under an accredited full-time programme in Hong Kong funded by the University Grants Committee (UGC), except: Self-financing programs; Continuing and professional education programs; Exchange or short-term training programs. b) Is a graduate of the GBA campus. Overseas Graduates These are students who have completed a bachelor’s degree or above from a full-time accredited program in Hong Kong. Recent Graduates are those who apply within six months of completing their studies (date stated on the certificate) and are considered recent graduates. They can apply to stay and work in Hong Kong without a job offer. They are granted a 24-month time-limited stay, subject to immigration requirements. If the results of their studies have not yet been received, they can apply for an extension of stay. A confirmation from the educational institution that they have completed their studies is sufficient for the application. Late Graduates: Those who apply more than six months after completing their studies are also considered recent graduates. However, they need a job offer to return to work in Hong Kong. Applications will be approved if the job is at the graduate level and the salary is in line with the market rate. GBA Campus Graduates These are students who have completed a bachelor’s degree or higher in a full-time program in the Guangdong-Hong Kong-Macao Greater Bay Area jointly run by universities on the mainland and Hong Kong. Recent GBA Campus graduates are those who apply within six months of graduation and can apply for jobs in Hong Kong without a job offer. They are granted a 24-month stay with a time limit, subject to immigration requirements. A confirmation from the educational institution that they have completed their studies is sufficient to apply. Late Graduates – A job offer is required to work in Hong Kong. Applications will be approved if the job is at the graduate’s level and the salary is in line with the market rate. Family Members Applicants accepted under the IANG program can bring their spouse or civil partner and unmarried dependent children under 18 years of age to Hong Kong. This is possible if their relationship is officially recognized by the local authorities in the place of marriage. Applicants will sponsor their dependents in Hong Kong. The application for entry of a dependent may be approved if the following conditions are met: Proof of genuine relationship between the dependent and the sponsor. No negative records regarding the dependent. Ability of the sponsor to support the dependent at a level above the subsistence level and provide suitable accommodation in Hong Kong. This procedure does not apply to: Former residents of Mainland China who have resided in Macau for less than seven years unless they have obtained residence under the Unilateral Permit Scheme. Citizens of Afghanistan and North Korea. The duration of stay of dependants will be linked to that of their sponsors. Extension of stay is possible if the applicant continues to meet the criteria and the sponsor remains a Hong Kong resident. Dependents may work or study in Hong Kong in accordance with the current policy. <img loading="lazy" decoding="async" width="650" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program-650x1024.webp" alt="General requirements for obtaining a Hong Kong work visa under the IANG program" class="wp-image-13947" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program-650x1024.webp 650w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program-191x300.webp 191w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program-768x1209.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program-976x1536.webp 976w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program-1301x2048.webp 1301w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program-95x150.webp 95w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program.webp 1598w" sizes="auto, (max-width: 650px) 100vw, 650px" /> General requirements for obtaining a Hong Kong work visa under the IANG program Top Talent Placement Program (TTPS) The TTPS program aims to attract highly skilled professionals and graduates from leading universities around the world to work in Hong Kong. It does not apply to nationals of Afghanistan, Cuba and North Korea. Eligibility Criteria Applicants are not required to have a job offer in Hong Kong when applying. They may be granted a stay of 36 months (Category A) or 24 months (Categories B and C) with a time limit. Applications are accepted under the following categories: Category A: Individuals with an annual income of HK$2.5 million or more in the previous year. Category B: Graduates from recognized universities with at least three years of work experience in the past five years. Category C: Graduates from recognized universities in the past five years with less than three years of work experience, subject to the availability of annual quota. An exception is made for overseas students who have obtained a bachelor’s degree in Hong Kong. Application Conditions An application may be approved if: There are no objections on security grounds and no serious criminal record. An annual quota is available (for Category C). Successful applicants will be granted an initial stay of 36 months (Category A) or 24 months (Categories B and C), with a time limit. Special Conditions for Chinese Nationals Chinese nationals holding PRC passports who reside overseas may apply if they: Have a permanent residence abroad. Have resided overseas for at least one year prior to applying and apply from overseas. <img loading="lazy" decoding="async" width="577" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-577x1024.webp" alt="Top Talent Placement Program (TTPS)" class="wp-image-13946" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-577x1024.webp 577w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-169x300.webp 169w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-768x1362.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-866x1536.webp 866w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-1155x2048.webp 1155w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-85x150.webp 85w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-scaled.webp 1444w" sizes="auto, (max-width: 577px) 100vw, 577px" /> Top Talent Placement Program (TTPS) Common factors in programs Regardless of the visa type, applicants must meet a number of requirements set by the Immigration Department to obtain a work permit in Hong Kong. Success in the application process depends on careful preparation of documents and compliance with the established rules. In this section, we will look at the key requirements that should be taken into account before submitting an application. Proof of qualifications All applicants are required to provide certified copies of diplomas and certificates. Documents written in languages ​​other than English or Chinese must be translated and certified. Failure to comply with these requirements may result in visa refusal. Financial stability of the employer or the candidate The employer or the candidate must prove their financial solvency. Under the TTPS, Category A requires an income of HK$2.5 million in the last year. 10 Common Mistakes When Applying for a Work Visa in Hong Kong The work visa application process requires attention to detail, and even a small mistake can lead to a delay or refusal. Many applicants encounter difficulties due to an incomplete understanding of the requirements or missing documents. Most refusals occur due to common mistakes that can be avoided if you know about them in advance. We will look at the most common mistakes and give you tips on how to avoid them so that you can successfully complete the application process. Incorrectly completed or incomplete application form: Rushing to complete the form may result in errors and delays in processing. Not meeting the criteria set by the Immigration Department: Failure to meet the requirements for a specific visa type, such as no genuine job offer or documentary evidence of financial means. Providing misleading or false information: Providing incorrect information may result in visa refusal and entry into the country. Failure to provide sufficient documents: Lack of necessary supporting documents, such as proof of employment or financial support. Misunderstanding of visa requirements: Unawareness of the need for a visa for citizens of certain countries or the length of visa-free stay. Missing deadlines: The Immigration Department gives a certain period of time to provide missing documents. Missing this deadline may result in the closure of the case Errors in the business plan or its unrealisticness (for Entry for Investment): Lack of comprehensive details in the business plan. Insufficient information about capital investments and business funds. Unrealistic indicators or unsupported data. Incomplete information: Applicants do not provide all required information or do not realize that certain information is required. Mistakes in work visa sponsorship: Ignoring sponsor requirements. Unreliable financial condition of the sponsor-employer. Choosing the wrong moment: It is important to choose the right time to submit your application. If you are not ready, make a list of shortcomings and correct them before submitting. Frequently Asked Questions (FAQ) What are the main types of work visas available in Hong Kong? There are several work visa programs in Hong Kong, including the General Employment Policy (GEP), the Assigned Mainland Skilled Trade Program (ASMTP), the Quality Migrant Admission Scheme (QMAS), the Immigration Arrangement for Graduates (IANG), and the Top Talent Program (TTPS). Each of these programs has its own unique requirements and targets different categories of professionals. What are the general requirements for a GEP work visa? To qualify for a GEP visa, you must have a university degree or advanced qualification, a job offer from a Hong Kong company, meet market wage standards, and have no legal issues. The employer must prove that the vacancy cannot be filled by local professionals. What are the common mistakes applicants make when applying for a work visa and how can they be avoided? Common mistakes include incorrectly completed forms, providing false information, incomplete documents, and not meeting the program criteria. To avoid these mistakes, it is important to carefully review the requirements, prepare all the necessary documents, and ensure that they are complete and accurate. What is the step-by-step process for applying for a Hong Kong work visa? The process involves collecting the necessary documents, completing the application form, submitting the application to the Hong Kong Immigration Department, waiting for the review (usually about four weeks), and receiving a decision. It is important to follow all instructions and meet the application deadlines. How do I extend and renew my Hong Kong work visa? An extension is possible if the employment conditions remain the same and the applicant continues to meet all the program requirements. An application for an extension must be submitted before the expiry of the current visa. Dependents can also extend their stay as long as the sponsor remains a Hong Kong resident. What is the Top Talent Placement Scheme (TTPS) and who can apply? The TTPS aims to attract highly skilled professionals and graduates from leading universities around the world to work in Hong Kong. Applicants are not required to have a job offer when applying. The program does not apply to nationals of Afghanistan, Cuba and North Korea Which categories of applicants can participate in the TTPS program? The program includes three categories: Category A: Individuals with an annual income of HK$2.5 million or more in the previous year. Category B: Graduates from recognized universities with at least three years of work experience in the past five years. Category C: Graduates from recognized universities in the past five years with less than three years of work experience, subject to the availability of an annual quota. Ask a question Hong Kong Residence Permit Through Employment
Residence Permit in Hong Kong for Entrepreneurs: Guide
This article outlines the process of obtaining a residence permit for entrepreneurs, including the main stages, requirements, and useful tips to increase the chances of successful application approval.
Hong Kong is one of the world’s leading financial centers, attracting entrepreneurs from around the globe due to its favorable tax regime and strategic location. For businesspeople looking to enter international markets and leverage all the advantages of Hong Kong, obtaining a residence permit becomes a key step. This article outlines the process of obtaining a residence permit for entrepreneurs, including the main stages, requirements, and useful tips to increase the chances of successful application approval. What you will learn from this guide: What visas are available for entrepreneurs in Hong Kong. How to register a company and obtain all necessary documents. How to properly prepare a business plan for a successful application. How to ensure your business complies with local legal standards. Features of visa renewal and obtaining permanent residency. Legal Aspects of Obtaining a Residence Permit in Hong Kong for Entrepreneurs In this context, a residence permit refers to a visa obtained based on conducting business in Hong Kong on behalf of a company or investing in a business where the applicant is the main shareholder or partner (Investor visa, entrepreneur visa, or business visa). The issuance of visas for entrepreneurs (investors) is regulated by the Hong Kong Immigration Department under the General Employment Policy (GEP). The program aims to attract skilled foreign professionals and entrepreneurs capable of contributing to the region’s economic development. Benefits of an Entrepreneur Visa in Hong Kong It’s worth noting that a visa is not required for conducting business in Hong Kong. Both shareholders and directors of a company can be non-residents without any requirements for permits or visas. However, when an entrepreneur wants to reside permanently in Hong Kong, conduct business, and work fully in the special administrative region, an appropriate visa is required. Holders of an investor (entrepreneur) visa have the right to legally reside, conduct business, and work in Hong Kong, allowing them to actively develop their business and fully leverage the advantages of localization and the local market. The visa provides the following additional benefits: Opening a personal current account in Hong Kong banks. Entrepreneurs with a residence permit and residence in Hong Kong can easily open a personal account in one of the local banks. This simplifies receiving dividends and salaries. Opening a company account in a Hong Kong bank. A company with a foreign shareholder legally residing in Hong Kong has a significantly better chance of opening an account in a local bank. Although business details are carefully reviewed, such a business disposition is more advantageous. Residing in Hong Kong without the need to leave. The investor visa allows entrepreneurs to reside permanently in Hong Kong without requiring regular departures, ensuring stability and comfort. Flexibility in residence. The absence of a requirement for permanent residence in Hong Kong to maintain the visa provides freedom of choice, allowing the visa to be retained without being tied to a location. Possibility to establish not only companies but also open a sole proprietorship. The main visa applicant can bring their spouse and unmarried children (under 18 years old) to Hong Kong. After successfully residing in Hong Kong for 7 years, you may be eligible to apply for Hong Kong citizenship. Hong Kong is rightly called the “gateway to Asia.” This city-state offers unique business opportunities due to the following factors: Low taxes. Hong Kong has one of the lowest profit tax rates (16.5%) and no capital gains tax. For small businesses with profits up to 2 million HKD, the rate is 8.25%. If the source of profit is outside Hong Kong, such profit is not taxed. Ease of doing business. Company registration takes only a few days, and the legal system protects the interests of foreign investors. All that is required is to meet basic requirements for filing forms and reports and conducting audits. International connections. Hong Kong is an international trade and financial center with direct access to the Chinese market and other regions of Asia. <img loading="lazy" decoding="async" width="568" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs-568x1024.webp" alt="Benefits of Residence Permit in Hong Kong for Entrepreneurs" class="wp-image-13907" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs-568x1024.webp 568w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs-166x300.webp 166w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs-768x1385.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs-852x1536.webp 852w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs-1136x2048.webp 1136w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs-83x150.webp 83w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs.webp 1212w" sizes="auto, (max-width: 568px) 100vw, 568px" /> Benefits of Residence Permit in Hong Kong for Entrepreneurs Requirements for Obtaining an Investor Visa in Hong Kong To apply for an investor visa, certain conditions must be met. The Hong Kong Immigration Department pays special attention to how your business can contribute to the region’s economic development. This includes creating jobs for locals, actively collaborating with local companies, and promoting Hong Kong as an innovative and technological hub. Your contribution can become an important part of Hong Kong’s economic growth, opening new opportunities and prospects in this dynamic region. An application for an investor visa in the Hong Kong Special Administrative Region can be approved if the following conditions are met: Existing company. Typically, this is an already active business. However, under certain conditions, a startup may also be considered. No legal issues. The applicant has no criminal record and is not associated with any serious crimes. There are no security concerns for Hong Kong. Education and experience. The applicant should have a good education, usually a higher education in a relevant field. In special cases, good technical qualifications, proven professional abilities, and/or relevant experience and achievements documented may be accepted. Contribution to Hong Kong’s economy. The applicant must be able to make a significant contribution to Hong Kong’s economy. This is assessed based on the following criteria: Business plan. The applicant must provide a two-year business plan describing the nature of the business, market analysis, positioning, sales goals, and marketing strategy. Financial statement forecasts must also be presented to demonstrate the business’s viability. Business turnover. If the applicant already conducts business abroad or in Hong Kong, financial statements for the previous year must be provided. For new businesses, a two-year forecast is required to show potential turnover and development. Financial resources. The applicant must provide statements from personal and company accounts, as well as other evidence of financial stability, to confirm sufficient resources for conducting business. Investment amount. The investment amount in Hong Kong must be documented to show it is sufficient to support the business. Job creation. The applicant must describe the business’s organizational structure and indicate the number and level of jobs created locally. Introduction of new technologies or skills. If applicable, the applicant must explain how new technologies or skills will contribute to the development of high-value-added industries in Hong Kong and support its long-term development as a knowledge-based economy. <img loading="lazy" decoding="async" width="466" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-466x1024.webp" alt="Conditions for Approval of an Investor Visa in Hong Kong" class="wp-image-13908" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-466x1024.webp 466w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-136x300.webp 136w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-768x1689.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-698x1536.webp 698w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-931x2048.webp 931w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-68x150.webp 68w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-scaled.webp 1164w" sizes="auto, (max-width: 466px) 100vw, 466px" /> Conditions for Approval of an Investor Visa in Hong Kong The main visa applicant can bring a spouse and unmarried children (under 18 years old) to Hong Kong. Step-by-Step Process for Applying for an Investor Visa Step 1: Company Registration To apply for a visa, you must register a company in Hong Kong. The registration process usually takes a few days. However, to increase the chances of successful consideration, it is important for the company to start active operations. The more stable and successful the company’s business model, the higher the likelihood of a positive visa decision. Step 2: Business Plan Preparation To apply for an investor visa, the entrepreneur must provide a detailed two-year business plan. This document should demonstrate the financial viability and development strategy of the business in Hong Kong. The more detailed and realistic your business plan the higher the chances of successful application consideration. Support it with evidence and artifacts to convince of the viability and prospects of your business. <img loading="lazy" decoding="async" width="584" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-584x1024.webp" alt="Business Plan Preparation for Investor Visa" class="wp-image-13900" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-584x1024.webp 584w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-171x300.webp 171w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-768x1346.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-876x1536.webp 876w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-1168x2048.webp 1168w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-86x150.webp 86w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-scaled.webp 1461w" sizes="auto, (max-width: 584px) 100vw, 584px" /> Business Plan Preparation for Investor Visa Step 3: Document Collection for Submission To apply for a business visa, the entrepreneur must provide the following set of documents: Required documents from the applicant: Completed form ID999A. Applicant’s photograph. Valid identification, including pages of visited countries. Copies of diplomas, professional activity documents (proof of education and experience). Police clearance certificate Bank statements to demonstrate financial stability. Documents on business investments. Employment contract with a company in Hong Kong and appointment decision (if applicable). Required documents from the company: Business registration certificate. Licenses, business operation certificates. Employment contract between the company and the applicant (if applicable). Latest audited financial statements. Business plan with financial forecasts, profit and loss statement. Evidence of commercial activity: copies of contracts, invoices. Company presentation: commercial activity, history, product range, and markets. Evidence of hiring local employees (e.g., Mandatory Provident Fund contribution data). Company organizational structure. If sponsors are involved in obtaining the residence permit, their documents are also required. Sponsor – Individual: Copy of HK ID. Copy of Hong Kong citizen’s passport. Completed Form ID999B. Sponsor – Legal Entity: Completed form ID999B. Business registration certificate. Audited financial statements and tax return. Documents for family members: Section B of form ID999A (completed by dependents). Recent photographs of dependents. Valid identification of dependents. Proof of family relationships (marriage certificate, birth certificates). <img loading="lazy" decoding="async" width="694" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_-694x1024.webp" alt="Required Documents for an Investor Visa in Hong Kong" class="wp-image-13901" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_-694x1024.webp 694w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_-203x300.webp 203w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_-768x1133.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_-1041x1536.webp 1041w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_-1388x2048.webp 1388w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_-102x150.webp 102w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_.webp 1598w" sizes="auto, (max-width: 694px) 100vw, 694px" /> Required Documents for an Investor Visa in Hong Kong Step 4: Submission and Review of the Application The application process begins with submitting all necessary documents to the Hong Kong Immigration Department. After submission, the review stage begins, which typically takes 4 to 6 weeks. During this time, department specialists thoroughly examine the provided materials, assessing the applicant’s compliance with established requirements. In some cases, the department may request additional documents or information for a more detailed analysis. This may include clarifications on the business plan, financial forecasts, or other aspects of the company’s activities. A quick and accurate response to such requests can expedite the review process and increase the chances of successfully obtaining the visa. Step 5: Obtaining the Visa After successful application review, the entrepreneur receives a business visa, granting the right to reside and conduct business in Hong Kong. Initially, the visa is issued for up to one year, with the possibility of renewal upon meeting all conditions and successful company operations. This opens opportunities for further business development and strengthening market positions in Hong Kong. <img loading="lazy" decoding="async" width="533" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-533x1024.webp" alt="Stages of Reviewing a Business Visa Application in Hong Kong" class="wp-image-13902" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-533x1024.webp 533w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-156x300.webp 156w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-768x1476.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-799x1536.webp 799w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-1066x2048.webp 1066w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-78x150.webp 78w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-scaled.webp 1332w" sizes="auto, (max-width: 533px) 100vw, 533px" /> Stages of Reviewing a Business Visa Application in Hong Kong Visa for Family Members The Hong Kong investment visa provides entrepreneurs with the opportunity to bring their family, which is an important advantage for those planning long-term activities and wanting to ensure comfortable living for their loved ones. Documents for Obtaining a Visa for Family Members Applicants for dependent visas (spouses and children) must provide the following documents: Section B of form ID999A. Completed part of the form concerning family members. Recent photographs of dependents. Recent photos that meet the requirements for visa documents. Valid identification of dependents. Passport or other official identification documents. Proof of family relationships. Marriage and birth certificates confirming kinship with the main applicant. These documents will help confirm the family members’ right to obtain a visa and reside in Hong Kong with the entrepreneur. The application for a family member visa is submitted together with the main business visa application. The entire process may take up to 4-6 weeks. <img loading="lazy" decoding="async" width="634" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Entrepreneurs-Family-Visa-634x1024.webp" alt="Entrepreneur's Family Visa" class="wp-image-13903" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Entrepreneurs-Family-Visa-634x1024.webp 634w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Entrepreneurs-Family-Visa-186x300.webp 186w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Entrepreneurs-Family-Visa-768x1241.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Entrepreneurs-Family-Visa-950x1536.webp 950w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Entrepreneurs-Family-Visa-93x150.webp 93w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Entrepreneurs-Family-Visa.webp 1212w" sizes="auto, (max-width: 634px) 100vw, 634px" /> Entrepreneur’s Family Visa Who is a Sponsor? If the business is already established, partners often act as sponsors for the visa application. However, if the business is new and its shareholders and directors are not permanent residents of Hong Kong, there is a need to choose an appropriate sponsor. Entrepreneur Visa Sponsorship Who can be a sponsor? An ideal sponsor is a holder of a permanent Hong Kong identity card, having business or personal connections with the applicant and interested in the success of the business. Professional Sponsorship Consulting companies may offer their services as sponsors for a fee, providing professional support and expertise. Risks and Responsibility Sponsoring an entrepreneur visa carries certain risks for the sponsor, as they are responsible for potential repatriation expenses of the applicant. If you do not have close connections in Hong Kong, consider seeking professional assistance to address sponsorship issues, minimizing risks and ensuring successful visa acquisition. Visa Renewal and Obtaining Permanent Residency The visa in Hong Kong is initially issued for one year. After its expiration, entrepreneurs can apply for a visa renewal. Renewal is possible for 2-3 years if your business continues to operate actively and you meet all immigration service requirements. How to Renew the Visa: 1. Provide Financial Statements – Prepare detailed financial reports for the past period, demonstrating business stability and growth. The reports should have a positive auditor’s opinion. 2. Confirm Business Success – Prove that the business generates income and creates jobs by providing relevant documents and statistics. 3. Timely Application Submission – Submit the renewal application several months before the current visa expires to avoid interruptions in your legal status. After 7 years of residing in Hong Kong, you can apply for permanent residency. <img loading="lazy" decoding="async" width="475" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-475x1024.webp" alt="Visa Renewal and Obtaining Citizenship" class="wp-image-13904" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-475x1024.webp 475w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-139x300.webp 139w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-768x1656.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-712x1536.webp 712w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-950x2048.webp 950w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-70x150.webp 70w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-scaled.webp 1187w" sizes="auto, (max-width: 475px) 100vw, 475px" /> Visa Renewal and Obtaining Citizenship Frequently Asked Questions (FAQ) Do I need a visa to visit Hong Kong? Citizens of about 170 countries can visit Hong Kong visa-free for a period ranging from 7 to 180 days. For more detailed information on visa requirements, visit the “Hong Kong Visa Requirements” webpage. Do I need a visa to establish a business in Hong Kong? Non-residents can establish a business and hold a director position in a company without needing a visa. When does an entrepreneur need a visa in Hong Kong? If an entrepreneur plans to live and work in Hong Kong, they will need an appropriate visa. This visa allows staying in the country longer than a visa-free visit and engaging in activities not permitted under tourist status. How long does it take to process a residence permit application? The processing time usually takes 4 to 6 weeks, depending on the completeness of the provided documents and the workload of the immigration service. Can I bring my family? Yes, family members (spouses and minor children) can obtain visas to reside in Hong Kong. Documents proving family relationships must be provided. How to renew the visa after the first year? To renew the visa, you must prove that your business continues to operate and benefit Hong Kong’s economy. Submit the renewal application several months before the current visa expires. How to obtain permanent residency in Hong Kong? After 7 years of continuous residence in Hong Kong, you can apply for permanent residency if your business continues to operate actively and you meet all requirements. Ask a question Residence Permit in Hong Kong for Entrepreneurs
Business Registration in Hong Kong: BRC, BRN, UBI
According to the provisions of the Business Registration Ordinance (Chapter 310) ("BRO"), all individuals engaging in business activities in Hong Kong are required to register their business with the Business Registration Office of the Inland Revenue Department, except for exempted businesses.
Business Registration in Hong Kong Business registration in Hong Kong is a mandatory step for all companies planning to operate in this jurisdiction. Business registration in Hong Kong first became mandatory in the early 20th century with the introduction of the Companies Ordinance. Since then, when the colony was under British rule, the system of business registration and regulation has evolved towards simplifying processes and creating favorable conditions for attracting foreign investors. After the transfer of sovereignty to China in 1997, Hong Kong retained its independent economic and legal system under the “One Country, Two Systems” principle. This allowed it to maintain its status as an international business hub. According to the provisions of the Business Registration Ordinance (Chapter 310) (“BRO”), all individuals engaging in business activities in Hong Kong are required to register their business with the Business Registration Office of the Inland Revenue Department, except for exempted businesses. In Hong Kong, the term “business” encompasses any activity aimed at earning profit, including trade, commerce, craftsmanship, profession, or clubs. According to the Companies Ordinance (Chapter 622), every local or foreign company registered in Hong Kong, as well as open-ended fund companies and limited partnership funds registered or re-domiciled in Hong Kong, are considered to be conducting business and must be registered under the Business Registration Ordinance (BRO). This also applies to foreign corporations with a representative office or office in Hong Kong or leasing property in Hong Kong. To register a business in Hong Kong, companies must comply with the requirements of several key legislative acts: Business Registration Ordinance (BRO) – regulates the process of business registration and the issuance of the BRC. According to the BRO, every business entity in Hong Kong must register within 30 days of commencing operations. Companies Ordinance (CO) – defines the rules and requirements for the corporate structure of companies, their reporting, and the conduct of business in Hong Kong. Inland Revenue Ordinance – establishes the taxation rules for all registered companies and determines the procedure for filing tax returns and reports. <img loading="lazy" decoding="async" width="609" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-Business-is-Subject-to-Registration-in-Hong-Kong_-609x1024.webp" alt="What Business is Subject to Registration in Hong Kong" class="wp-image-13832" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-Business-is-Subject-to-Registration-in-Hong-Kong_-609x1024.webp 609w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-Business-is-Subject-to-Registration-in-Hong-Kong_-178x300.webp 178w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-Business-is-Subject-to-Registration-in-Hong-Kong_-768x1291.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-Business-is-Subject-to-Registration-in-Hong-Kong_-914x1536.webp 914w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-Business-is-Subject-to-Registration-in-Hong-Kong_-89x150.webp 89w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-Business-is-Subject-to-Registration-in-Hong-Kong_.webp 1212w" sizes="auto, (max-width: 609px) 100vw, 609px" /> What Business is Subject to Registration in Hong Kong It is important to note that individuals employed by others are not required to register a business. Some types of businesses in Hong Kong are exempt from mandatory registration under the BRO. These include: Activities of approved charitable organizations, subject to certain conditions. Business in agriculture, horticulture, animal husbandry, or fishing, except for local and foreign registered companies. Shoe-shining business. Activities of hawkers requiring a license under the Hawker Regulation, except when the business is conducted inside a main building. Qualifying FiT business as defined in the Profits Tax Exemption (Feed-in Tariff Scheme) Order. When applying for company registration, it is considered that you are simultaneously applying for business registration. This requires submitting a notification to the Business Registration Office (IRBR1 for local companies, IRBR2 for foreign companies, IRBR4 for LPF) along with the prescribed business registration fee when filing with the Companies Registry. For an open-ended fund company, the notification (IRBR3) and the corresponding fee must be submitted to the Securities and Futures Commission upon registration or re-domiciliation. Business Registration Certificate in Hong Kong (BRC) The Business Registration Certificate (BRC) is a document issued by the Inland Revenue Department (IRD) of Hong Kong. It confirms that your enterprise is registered with the Inland Revenue Department (tax authority) of Hong Kong and is authorized to conduct business activities. A valid business registration certificate must be displayed prominently at the business address and be ready for official inspection upon request. If the certificate is issued electronically, a printed copy must be displayed. This is a mandatory requirement under Hong Kong law, and non-compliance may result in penalties. Key information contained in the BRC: Registered business name. Business Registration Number (BRN). Business registration address. Nature of business. Date of issue and validity period of the certificate. Amount of fee and levy paid.) <img loading="lazy" decoding="async" width="584" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Example-of-Business-Registration-Certificate-BRC-584x1024.webp" alt="Example of Business Registration Certificate (BRC)" class="wp-image-13833" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Example-of-Business-Registration-Certificate-BRC-584x1024.webp 584w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Example-of-Business-Registration-Certificate-BRC-171x300.webp 171w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Example-of-Business-Registration-Certificate-BRC-768x1347.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Example-of-Business-Registration-Certificate-BRC-876x1536.webp 876w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Example-of-Business-Registration-Certificate-BRC-86x150.webp 86w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Example-of-Business-Registration-Certificate-BRC.webp 946w" sizes="auto, (max-width: 584px) 100vw, 584px" /> Example of Business Registration Certificate (BRC) It is important to remember that obtaining a Business Registration Certificate does not guarantee compliance with all relevant laws and regulations. In addition to registration, a business owner may need to obtain additional licenses or professional qualifications to legally conduct activities. In case of doubt, it is recommended to seek advice from the relevant authorities. The Business Registration Certificate in Hong Kong must be renewed annually, and the corresponding government fee is payable. <img loading="lazy" decoding="async" width="937" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Types-of-Certificates-for-a-Hong-Kong-Company-937x1024.webp" alt="Types of Certificates for a Hong Kong Company" class="wp-image-13834" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Types-of-Certificates-for-a-Hong-Kong-Company-937x1024.webp 937w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Types-of-Certificates-for-a-Hong-Kong-Company-274x300.webp 274w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Types-of-Certificates-for-a-Hong-Kong-Company-768x840.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Types-of-Certificates-for-a-Hong-Kong-Company-137x150.webp 137w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Types-of-Certificates-for-a-Hong-Kong-Company.webp 1212w" sizes="auto, (max-width: 937px) 100vw, 937px" /> Types of Certificates for a Hong Kong Company BRN (Business Registration Number, Tax ID) The BRN (Business Registration Number) is part of the Business Registration Certificate, specifically a unique eight-digit number assigned to each company in Hong Kong by the Inland Revenue Department. It is used to identify the company with the tax authority when filing tax returns, opening bank accounts, and performing other administrative tasks. However, the BRN itself does not grant the right to conduct business; a valid BRC is required for that, which must be renewed annually. The BRN remains with the company permanently, while the certificate is replaced annually. Unique Business Identifier (UBI) The Unique Business Identifier (UBI) is a number used for the unambiguous identification of a legal entity. This number is introduced to reduce errors associated with using different identifiers for the same entity. The UBI facilitates communication and data exchange between government departments and businesses, helping the Hong Kong government improve the provision of public services and regulate organizational activities more effectively. Additionally, it helps companies more efficiently present their identity to business partners. Thanks to the joint efforts of the Inland Revenue Department, from December 27, 2023, the company registration number in Hong Kong (BRN), representing the first 8 digits of the registration certificate number assigned by the Inland Revenue Department, will be accepted as the Unique Business Identifier (UBI). This number will be used as a unique identifier for submitting forms and documents to the Companies Registry, as well as for interactions with government departments and businesses. For new companies registered from this date, the BRN will be indicated as the number on the Business Registration Certificate. Existing companies registered before December 27, 2023, will receive a letter from the Companies Registry informing them of the upcoming changes and the assignment of the BRN. The Unique Business Identifier (UBI), presented as the Business Registration Number (BRN), will be used in the following cases: For communication with government departments and businesses. When submitting relevant forms and documents to the Companies Registry. As a key number for electronic registry search services to find and identify a company or legal entity. <img loading="lazy" decoding="async" width="554" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Example-of-Notification-Letter-from-the-Register-of-Companies-554x1024.webp" alt="Example of Notification Letter from the Register of Companies" class="wp-image-13835" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Example-of-Notification-Letter-from-the-Register-of-Companies-554x1024.webp 554w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Example-of-Notification-Letter-from-the-Register-of-Companies-162x300.webp 162w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Example-of-Notification-Letter-from-the-Register-of-Companies-768x1420.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Example-of-Notification-Letter-from-the-Register-of-Companies-831x1536.webp 831w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Example-of-Notification-Letter-from-the-Register-of-Companies-81x150.webp 81w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Example-of-Notification-Letter-from-the-Register-of-Companies.webp 945w" sizes="auto, (max-width: 554px) 100vw, 554px" /> Example of Notification Letter from the Register of Companies Government Fee for Business Registration The fee for business registration varies depending on the time and duration. We can look at historical data: Time period Duty amount in HKD 01.04.2019 – 16.06.2022 250 17.06.2022 – 31.03.2023 150 01.04.2023 – 31.03.2024 2150 01.04.2024 – 31.03.2025 2200 The fee is paid at the time of company registration (upon the creation of a legal entity) and by the company’s anniversary date (for annual renewal). The government fee for Business Registration in 2024-2025 is Period Fee amount for 1 year, HKD Fee amount for 3 years, HKD 01.04.2024 – 31.03.2025 2200 5780 HKD After successful payment of the fee, a valid Business Registration Certificate (BRC) is issued by the Inland Revenue Department for the corresponding paid period and is sent to the company’s registered address in Hong Kong, typically within 7 days. If the certificate is not renewed on time, the company management faces a maximum penalty of up to 5,000 HKD and possible criminal prosecution with imprisonment for up to one year. Additional Licenses and Permits In some cases, business registration in Hong Kong is not limited to obtaining only the BRC. Depending on the nature of your company’s activities, you may need additional licenses or permits. This is especially relevant for companies operating in sectors such as finance, retail, or education. Example 1: Restaurant Licenses If you plan to open a restaurant or café in Hong Kong, you will need a restaurant business license issued by the Food and Environmental Hygiene Department (FEHD). Example 2: Asset Management License Financial companies engaged in asset management or investments are required to obtain a license from the Securities and Futures Commission (SFC). This license confirms that the company meets all standards for conducting activities in the financial and investment sector. Example 3: License for Educational Institutions To open educational centers or schools in Hong Kong, a license must be obtained from the Education Bureau (EDB). This license confirms compliance with educational standards and ensures the quality of educational services provided. Frequently Asked Questions (FAQ) What is a Business Registration Certificate (BRC)? <span class="NormalTextRun SCXW262508625 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">The Business Registration Certificate (BRC) is a document issued by the Inland Revenue Department of Hong Kong, confirming that your enterprise is registered and authorized to conduct business activities. Where should the BRC be located? <span class="NormalTextRun SCXW73134939 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">A valid Business Registration Certificate must be displayed prominently at the business address and be ready for official inspection. If the certificate is issued electronically, a printed copy must be displayed. What information does the BRC contain? – Registered business name. – Business Registration Number (BRN). – Business registration address. – Nature of business. – Date of issue and validity period of the certificate. – Amount of fee paid. How often must the BRC be renewed? <span class="NormalTextRun SCXW182183929 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">The Business Registration Certificate must be renewed annually, with the corresponding government fee paid. What is the BRN? <span class="NormalTextRun SCXW141788142 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">The BRN (Business Registration Number) is a unique eight-digit number assigned to each company in Hong Kong for identification with the tax authority. It is included in the Business Registration Certificate and is an integral part of it. What is the Unique Business Identifier (UBI)? <span class="NormalTextRun SCXW93307815 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">The Unique Business Identifier (UBI) is a number for the unambiguous identification of a legal entity, introduced to reduce errors and improve interaction between government departments and businesses. From December 27, 2023, the BRN is accepted as the UBI. You could say that the UBI is an enhanced BRN. What is the current business registration fee? <span class="NormalTextRun SCXW144078207 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">For the period from April 1, 2024, to March 31, 2025, the fee is 2,200 HKD for a 1-year certificate and 5,780 HKD for a 3-year certificate. How has the fee changed over recent years? – 01.04.2019 – 16.06.2022: 250 HKD – 17.06.2022 – 31.03.2023: 150 HKD – 01.04.2023 – 31.03.2024: 2150 HKD – 01.04.2024 – 31.03.2025: 2200 HKD When is the business registration fee paid? <span class="NormalTextRun SCXW254996523 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">The fee is paid at the time of company registration (upon the creation of a legal entity) and annually by the company’s anniversary date when renewing the certificate. What happens after the fee is paid? <span class="NormalTextRun SCXW153110256 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">After successful payment of the fee, the Inland Revenue Department issues a valid Business Registration Certificate (BRC) for the paid period. The certificate is usually delivered to the company’s registered address in Hong Kong within 7 days. What are the penalties for violating business registration laws? <span class="NormalTextRun SCXW158008061 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">If the certificate is not renewed on time, the company faces a maximum penalty of up to 5,000 HKD and possible criminal prosecution with imprisonment for up to one year. Ask a question Business Registration in Hong Kong
How to Close a Company in Hong Kong: A Complete Guide
In this article, we will provide a detailed explanation of how the company deregistration process works in Hong Kong, the stages and requirements that need to be followed, and offer practical advice for successfully completing the process.
Running a business in Hong Kong offers numerous advantages, such as low taxes, a stable legal system, and the opportunity to operate in international markets. However, business processes do not always develop as planned, and sometimes circumstances arise where a company decides to cease its operations. Closing a company is not always a negative event. Often, it is simply a natural stage in the life of a business. When a company ceases its operations and no longer requires a legal form, one of the simplest and most cost-effective ways to end its existence is through the deregistration process. In this article, we will provide a detailed explanation of how the company deregistration process works in Hong Kong, the stages and requirements that need to be followed, and offer practical advice for successfully completing the process. When to Choose Deregistration? Deregistration of a company is one way to close a business in Hong Kong. This procedure is suitable for companies that are no longer engaged in commercial activities and have no outstanding obligations. For example, if a business was created for a single project and after its completion, the need for the company has ceased, deregistration would be the most logical step. This process is also suitable for holding companies that no longer own assets or for companies that were registered but never commenced their commercial activities. Deregistration is beneficial for several reasons: It does not require the appointment of a liquidator. It does not require compliance with the debt distribution process. It has relatively low costs for closing a business. It has clearly defined conditions and procedures, ensuring a high predictability of the final outcome. It is a relatively quick process for closing a business. <img loading="lazy" decoding="async" width="470" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Deregistration-of-a-Company-in-Hong-Kong_-A-Brief-Overview-470x1024.webp" alt="Deregistration of a Company in Hong Kong: A Brief Overview " class="wp-image-13800" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Deregistration-of-a-Company-in-Hong-Kong_-A-Brief-Overview-470x1024.webp 470w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Deregistration-of-a-Company-in-Hong-Kong_-A-Brief-Overview-138x300.webp 138w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Deregistration-of-a-Company-in-Hong-Kong_-A-Brief-Overview-768x1673.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Deregistration-of-a-Company-in-Hong-Kong_-A-Brief-Overview-705x1536.webp 705w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Deregistration-of-a-Company-in-Hong-Kong_-A-Brief-Overview-940x2048.webp 940w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Deregistration-of-a-Company-in-Hong-Kong_-A-Brief-Overview-69x150.webp 69w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Deregistration-of-a-Company-in-Hong-Kong_-A-Brief-Overview-scaled.webp 1175w" sizes="auto, (max-width: 470px) 100vw, 470px" /> Deregistration of a Company in Hong Kong: A Brief Overview Deregistration is the fastest and most economical way to liquidate a company if it has no debts and assets. However, deregistration is not always a possible option. Companies with debts, assets, or ongoing legal proceedings may require more complex liquidation procedures, such as court-ordered or voluntary liquidation. Comparison of Methods Company Liquidation in Hong Kong Parameter Requirements Cost Timeframe Appointment of Liquidator Deregistration No debts, no activities Low 6–10 months Not required Court-ordered Liquidation Presence of debts or claims High Up to 2 years Required Voluntary Liquidation Shareholders’ consent, active business Medium 12-18 months Required Conditions for Deregistration Who can apply for company deregistration in Hong Kong? Applications for company deregistration in Hong Kong can be submitted by: A private company or a company limited by shares. A director or member of the company. Exceptions: Companies specified in section 749, namely public companies, banks, insurance companies, pension funds, trusts, licensed companies under the Securities and Futures Ordinance, companies with subsidiaries falling under the above categories. Companies registered under Part 16 of the Companies Ordinance, namely non-Hong Kong companies. Conditions for applying for deregistration: Consent of Members: All members of the company must unanimously agree to the decision to close the company. No Activity: The company must not have conducted any business activities in the three months immediately preceding the application. Financial Obligations: The company must not have any outstanding obligations to creditors or other parties, including the Hong Kong government. Legal Proceedings: The company must not be involved in any ongoing legal proceedings. Assets: The company’s assets must not include real estate located in Hong Kong. If the company is a holding company, the assets of its subsidiaries must also not include such real estate. Notice of No Objection: The company must obtain a “Notice of No Objection” from the tax authority, confirming there are no objections to the company’s deregistration. Meeting these conditions ensures the legal closure of a company in Hong Kong with minimal resistance. <img loading="lazy" decoding="async" width="1024" height="464" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Important-1024x464.webp" alt="Important" class="wp-image-13801" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Important-1024x464.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Important-300x136.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Important-768x348.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Important-250x113.webp 250w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Important.webp 1363w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> Important Before applying for company closure, it is also important to properly dispose of the company’s assets to prevent them from becoming the property of the Hong Kong government as bona vacantia. It is recommended to ensure that all company assets, including cash in bank accounts, vehicles, and real estate, are distributed or sold. This will help meet the conditions for deregistration and avoid the transfer of assets to the government. <img loading="lazy" decoding="async" width="1024" height="464" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Important-1024x464.webp" alt="Important" class="wp-image-13802" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Important-1024x464.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Important-300x136.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Important-768x348.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Important-250x113.webp 250w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Important.webp 1363w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> Important Before initiating the deregistration process and until its completion, the company must comply with all applicable Hong Kong company laws. This includes maintaining its active status and regular reporting to the tax authority in the standard manner. Main Steps of the Company Deregistration Procedure The deregistration process involves several steps, starting with the preparation of documents and verification of the company’s compliance with established requirements, to submitting the application and receiving official confirmation of the company’s closure. Each step requires careful attention and adherence to deadlines to avoid delays and rejections. Step 1: Compliance Check At this stage, a detailed analysis of the company is conducted: checking for debts, ensuring the company is not actively operating, confirming all shareholders are ready for deregistration, and so on. If the company has debts or outstanding obligations, they must be settled first. It is also important to obtain official confirmations of the closure of all accounts and contracts. <img loading="lazy" decoding="async" width="724" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Basic-Conditions-for-Company-Closure_-724x1024.webp" alt="Basic Conditions for Company Closure:" class="wp-image-13791" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Basic-Conditions-for-Company-Closure_-724x1024.webp 724w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Basic-Conditions-for-Company-Closure_-212x300.webp 212w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Basic-Conditions-for-Company-Closure_-768x1087.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Basic-Conditions-for-Company-Closure_-1085x1536.webp 1085w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Basic-Conditions-for-Company-Closure_-106x150.webp 106w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Basic-Conditions-for-Company-Closure_.webp 1212w" sizes="auto, (max-width: 724px) 100vw, 724px" /> Basic Conditions for Company Closure: Step 2: Obtaining the Notice of No Objection One of the key steps at the start of the process is obtaining the Notice of No Objection, which is issued by the Inland Revenue Department (IRD) and confirms that the company has no tax liabilities. The tax authority will not issue this notice if the company has any overdue obligations with the tax authority. Therefore, before submitting the relevant application to the tax authority, it is necessary to ensure that: All tax returns (Profit Tax Return, PTR) have been filed. Each PTR must be submitted with accompanying financial statements, which are confirmed by an auditor. Once all obligations to the tax authority are settled, the application form IR1263 can be prepared. The duly completed application is submitted to the Hong Kong Inland Revenue Department with a non-refundable fee of HKD 270. The processing time for the application and company review is 21 working days after receipt of the application and payment. An authorized inspector from the Inland Revenue Department will issue a Notice of No Objection or a refusal if the company has outstanding tax obligations. After resolving all outstanding issues, the applicant can resubmit the request. No additional fee is charged for resubmission. <img loading="lazy" decoding="async" width="596" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Obtaining-the-Notice-of-No-Objection-for-Deregistration-from-the-Hong-Kong-Inland-Revenue-Department-596x1024.webp" alt="Obtaining the Notice of No Objection for Deregistration from the Hong Kong Inland Revenue Department" class="wp-image-13792" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Obtaining-the-Notice-of-No-Objection-for-Deregistration-from-the-Hong-Kong-Inland-Revenue-Department-596x1024.webp 596w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Obtaining-the-Notice-of-No-Objection-for-Deregistration-from-the-Hong-Kong-Inland-Revenue-Department-175x300.webp 175w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Obtaining-the-Notice-of-No-Objection-for-Deregistration-from-the-Hong-Kong-Inland-Revenue-Department-768x1319.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Obtaining-the-Notice-of-No-Objection-for-Deregistration-from-the-Hong-Kong-Inland-Revenue-Department-895x1536.webp 895w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Obtaining-the-Notice-of-No-Objection-for-Deregistration-from-the-Hong-Kong-Inland-Revenue-Department-1193x2048.webp 1193w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Obtaining-the-Notice-of-No-Objection-for-Deregistration-from-the-Hong-Kong-Inland-Revenue-Department-87x150.webp 87w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Obtaining-the-Notice-of-No-Objection-for-Deregistration-from-the-Hong-Kong-Inland-Revenue-Department.webp 1388w" sizes="auto, (max-width: 596px) 100vw, 596px" /> Obtaining the Notice of No Objection for Deregistration from the Hong Kong Inland Revenue Department It is also important to note that if you cease the operations of your business or any of its branches, you must notify the Business Registration Office in writing within 1 month from the cessation date. Failure to provide such notification is an offense and may result in a fine of HKD 5,000 and imprisonment for 1 year. The notification must clearly state the following details: Registration number of your company or branch Company name and address Date of cessation of business Correspondence address after cessation Contact phone number Alternatively, you can provide this information by completing form IRC 3113. Note that all business registration fees must be fully paid by the end of the year in which the cessation occurs. Step 3: Submitting the Deregistration Application to the Hong Kong Companies Registry After obtaining the Notice of No Objection for company deregistration from the Hong Kong Inland Revenue Department, you can submit the deregistration application to the Hong Kong Companies Registry. To do this, you need to complete form NDR1, attach the Notice of No Objection, and other required documents. Documents to prepare: Form NDR1. Non-refundable government fee of HKD 420. Notice of No Objection from the Inland Revenue Department: For paper applications: original notice from the Inland Revenue Department; For electronic applications: certified copy of the notice, signed by the applicant, director, or company secretary. The Companies Registry may request any other information and documents. The application can be submitted through the electronic system or in person at the Companies Registry. On average, processing the application takes up to 5 working days. <img loading="lazy" decoding="async" width="1024" height="947" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Submitting-the-Deregistration-Application-to-the-Hong-Kong-Companies-Registry-1024x947.webp" alt="Submitting the Deregistration Application to the Hong Kong Companies Registry" class="wp-image-13793" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Submitting-the-Deregistration-Application-to-the-Hong-Kong-Companies-Registry-1024x947.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Submitting-the-Deregistration-Application-to-the-Hong-Kong-Companies-Registry-300x277.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Submitting-the-Deregistration-Application-to-the-Hong-Kong-Companies-Registry-768x710.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Submitting-the-Deregistration-Application-to-the-Hong-Kong-Companies-Registry-162x150.webp 162w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Submitting-the-Deregistration-Application-to-the-Hong-Kong-Companies-Registry.webp 1388w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> Submitting the Deregistration Application to the Hong Kong Companies Registry Step 4: Notifying Creditors and Employees After submitting the application, all interested parties, including creditors and employees, must be notified of the planned deregistration. This is an important legal step, as creditors have the right to file objections if they believe the company has not fulfilled its obligations to them. Prepare notifications. Draft letters and documents to inform the company’s creditors, employees, and partners about the upcoming deregistration. Send notifications. All notifications must be sent 3 months before submitting the deregistration application. Obtain confirmations. Ensure that notifications are received by all creditors and interested parties. Monitor objections. For 3 months after the notice is published in the government gazette, monitor for any possible objections from creditors. <img loading="lazy" decoding="async" width="900" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Notification-of-Creditors-and-Employees-about-Deregistration-900x1024.webp" alt="Notification of Creditors and Employees about Deregistration" class="wp-image-13794" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Notification-of-Creditors-and-Employees-about-Deregistration-900x1024.webp 900w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Notification-of-Creditors-and-Employees-about-Deregistration-264x300.webp 264w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Notification-of-Creditors-and-Employees-about-Deregistration-768x874.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Notification-of-Creditors-and-Employees-about-Deregistration-1350x1536.webp 1350w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Notification-of-Creditors-and-Employees-about-Deregistration-132x150.webp 132w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Notification-of-Creditors-and-Employees-about-Deregistration.webp 1388w" sizes="auto, (max-width: 900px) 100vw, 900px" /> Notification of Creditors and Employees about Deregistration Step 5: Publication of the Notice in the Government Gazette After submitting the application and notifying creditors and employees, information about the company’s deregistration must be published in the Hong Kong government gazette. This is a mandatory procedure that allows any interested parties to file objections within three months from the date of publication. <img loading="lazy" decoding="async" width="1024" height="521" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/8.-Notice-in-the-Government-Newspaper-1024x521.webp" alt="Notice in the Government Newspaper" class="wp-image-13795" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/8.-Notice-in-the-Government-Newspaper-1024x521.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/8.-Notice-in-the-Government-Newspaper-300x153.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/8.-Notice-in-the-Government-Newspaper-768x391.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/8.-Notice-in-the-Government-Newspaper-250x127.webp 250w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/8.-Notice-in-the-Government-Newspaper.webp 1363w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> Notice in the Government Newspaper Step 6: Receiving Confirmation of Deregistration After three months have passed since the publication, and in the absence of objections, the company will be officially struck off the Register. At this point, the company ceases to exist as a legal entity. <img loading="lazy" decoding="async" width="1024" height="600" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/9.-After-the-completion-of-the-deregistration-process-all-accounting-and-financial-documents-of-the-company-must-be-retained-for-at-least-six-years.-This-is-a-requirement-under-Hong-Kong-law-1024x600.webp" alt="After the completion of the deregistration process, all accounting and financial documents of the company must be retained for at least six years. " class="wp-image-13796" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/9.-After-the-completion-of-the-deregistration-process-all-accounting-and-financial-documents-of-the-company-must-be-retained-for-at-least-six-years.-This-is-a-requirement-under-Hong-Kong-law-1024x600.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/9.-After-the-completion-of-the-deregistration-process-all-accounting-and-financial-documents-of-the-company-must-be-retained-for-at-least-six-years.-This-is-a-requirement-under-Hong-Kong-law-300x176.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/9.-After-the-completion-of-the-deregistration-process-all-accounting-and-financial-documents-of-the-company-must-be-retained-for-at-least-six-years.-This-is-a-requirement-under-Hong-Kong-law-768x450.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/9.-After-the-completion-of-the-deregistration-process-all-accounting-and-financial-documents-of-the-company-must-be-retained-for-at-least-six-years.-This-is-a-requirement-under-Hong-Kong-law-250x147.webp 250w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/9.-After-the-completion-of-the-deregistration-process-all-accounting-and-financial-documents-of-the-company-must-be-retained-for-at-least-six-years.-This-is-a-requirement-under-Hong-Kong-law.webp 1363w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> After the completion of the deregistration process, all accounting and financial documents of the company must be retained for at least six years. Risks and Consequences of Deregistration After deregistration, the company no longer exists as a legal entity. Any assets of the company not disposed of before the completion of the procedure become the property of the state under the principle of bona vacantia. Key risks also include: Liability of Directors Directors and members of the company remain responsible for any obligations that may not have been fulfilled at the time of deregistration. Possibility of Company Restoration In case of errors during deregistration or lack of proper notification to interested parties, the company may be restored by court order within 20 years. Legal Consequences for Shareholders Unfulfilled obligations to creditors may lead to legal proceedings against the company’s shareholders. Recommendations for Documentation: <img loading="lazy" decoding="async" width="712" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/10.-Risks-and-Consequences-of-Deregistration-712x1024.webp" alt="Risks and Consequences of Deregistration" class="wp-image-13797" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/10.-Risks-and-Consequences-of-Deregistration-712x1024.webp 712w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/10.-Risks-and-Consequences-of-Deregistration-209x300.webp 209w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/10.-Risks-and-Consequences-of-Deregistration-768x1104.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/10.-Risks-and-Consequences-of-Deregistration-1068x1536.webp 1068w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/10.-Risks-and-Consequences-of-Deregistration-104x150.webp 104w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/10.-Risks-and-Consequences-of-Deregistration.webp 1212w" sizes="auto, (max-width: 712px) 100vw, 712px" /> Risks and Consequences of Deregistration Frequently Asked Questions (FAQ) Must the company file an Annual Return before and during deregistration? <span class="NormalTextRun SCXW76240437 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"1fb3ec9f-4b8f-4787-a7a3-d59ab450d74b|14","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"afd",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">Yes, until your company is officially deregistered and dissolved, it must comply with all its statutory obligations under the Companies Ordinance. This includes filing annual returns and notifications of any changes, such as the registered office address, changes in the company secretary and directors, and their registration details.<span class="EOP SCXW76240437 BCX0" data-ccp-props="{"201341983":0,"335551550":6,"335551620":6,"335559738":160,"335559740":288,"335572071":4,"335572072":0,"335572073":0,"335572075":4,"335572076":0,"335572077":0,"335572079":4,"335572080":0,"335572081":0,"335572083":4,"335572084":0,"335572085":0,"335572087":4,"335572088":0,"335572089":0,"469789798":"none","469789802":"none","469789806":"none","469789810":"none","469789814":"none"}"> Must the company maintain an up-to-date registered address before and during deregistration? <span class="NormalTextRun SCXW162059596 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"1fb3ec9f-4b8f-4787-a7a3-d59ab450d74b|14","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"afd",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">Yes, until your company is officially dissolved, it must maintain an up-to-date registered address in Hong Kong. This is necessary to comply with all statutory obligations under the Companies Ordinance and to ensure the company is accessible to regulatory authorities.<span class="EOP SCXW162059596 BCX0" data-ccp-props="{"201341983":0,"335551550":6,"335551620":6,"335559738":160,"335559740":288,"335572071":4,"335572072":0,"335572073":0,"335572075":4,"335572076":0,"335572077":0,"335572079":4,"335572080":0,"335572081":0,"335572083":4,"335572084":0,"335572085":0,"335572087":4,"335572088":0,"335572089":0,"469789798":"none","469789802":"none","469789806":"none","469789810":"none","469789814":"none"}"> Must the company have a corporate secretary before and during deregistration? <span class="NormalTextRun SCXW261208614 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"1fb3ec9f-4b8f-4787-a7a3-d59ab450d74b|14","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"afd",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">Yes, until your company is officially dissolved, it must have a corporate secretary. The corporate secretary is an officer responsible for ensuring the company complies with all legal and regulatory requirements. They also maintain company records, organize meetings of directors and shareholders, and file necessary documents with the registration authorities.<span class="EOP SCXW261208614 BCX0" data-ccp-props="{"201341983":0,"335551550":6,"335551620":6,"335559738":160,"335559740":288,"335572071":4,"335572072":0,"335572073":0,"335572075":4,"335572076":0,"335572077":0,"335572079":4,"335572080":0,"335572081":0,"335572083":4,"335572084":0,"335572085":0,"335572087":4,"335572088":0,"335572089":0,"469789798":"none","469789802":"none","469789806":"none","469789810":"none","469789814":"none"}"> Must the company have a valid business registration certificate before and during deregistration? <span class="NormalTextRun SCXW143851271 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"1fb3ec9f-4b8f-4787-a7a3-d59ab450d74b|14","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"afd",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">Yes, until your company is officially dissolved, it must have a valid business registration. Business registration in Hong Kong is a process that confirms the legal status of the company and allows it to conduct business activities. Registration includes obtaining a certificate, which must be regularly renewed to meet legal requirements and continue lawful operations.<span class="EOP SCXW143851271 BCX0" data-ccp-props="{"201341983":0,"335551550":6,"335551620":6,"335559738":160,"335559740":288,"335572071":4,"335572072":0,"335572073":0,"335572075":4,"335572076":0,"335572077":0,"335572079":4,"335572080":0,"335572081":0,"335572083":4,"335572084":0,"335572085":0,"335572087":4,"335572088":0,"335572089":0,"469789798":"none","469789802":"none","469789806":"none","469789810":"none","469789814":"none"}"> Is it possible to restore the company? Voluntarily: Only through the Hong Kong court.<span data-ccp-props="{"201341983":0,"335551550":6,"335551620":6,"335559685":851,"335559738":160,"335559740":288,"335559991":425,"335572071":4,"335572072":0,"335572073":0,"335572075":4,"335572076":0,"335572077":0,"335572079":4,"335572080":0,"335572081":0,"335572083":4,"335572084":0,"335572085":0,"335572087":4,"335572088":0,"335572089":0,"469789798":"none","469789802":"none","469789806":"none","469789810":"none","469789814":"none"}"> At the request of creditors: Through the Companies Registry and/or the Hong Kong court.<span data-ccp-props="{"201341983":0,"335551550":6,"335551620":6,"335559685":851,"335559738":0,"335559740":240,"335559991":425,"335572071":4,"335572072":0,"335572073":0,"335572075":4,"335572076":0,"335572077":0,"335572079":4,"335572080":0,"335572081":0,"335572083":4,"335572084":0,"335572085":0,"335572087":4,"335572088":0,"335572089":0,"469789798":"none","469789802":"none","469789806":"none","469789810":"none","469789814":"none"}"> Ask a question How to Close a Company in Hong Kong A Complete Guide
Temporary freezing of a company in Hong Kong: How to minimize maintenance costs.
In this article, we will explore how to transition a company to "dormant" status, what costs can be reduced through such a "transition," and highlight important legal aspects that need to be considered.
Conducting business in Hong Kong offers numerous advantages: favorable tax policies, transparent legislation, and a stable economic environment. However, there are times when a company may temporarily suspend its active operations. In such cases, fully liquidating the business might seem excessive, especially if there are plans to resume activities in the future. For these situations, Hong Kong legislation provides a solution— registering as a “dormant company” (dormant status). This status allows for a significant reduction in business maintenance costs and the avoidance of certain mandatory requirements while preserving the legal entity. In this article, we will explore how to transition a company to “dormant” status, what costs can be reduced through such a “transition,” and highlight important legal aspects that need to be considered. “Dormant” Company: Definition and Responsibilities According to Section 5 of the Hong Kong Companies Ordinance, private companies can apply for “dormant” status. A “dormant” company in Hong Kong refers to a registered private company that has temporarily suspended its operations and does not conduct any accounting transactions, except for the minimally necessary ones. This tool can be beneficial for companies planning to resume operations in the future but wishing to avoid the expenses associated with full business operations during the downtime. What expenses can be reduced by transitioning a company to “dormant” status? Filing of Annual Return: For active companies, this is a mandatory procedure, but a dormant company is not required to submit this report. Mandatory Audit: An audit of financial statements is not required, saving significant funds, especially for companies with a large volume of transactions. Annual General Meeting of Shareholders: The company no longer needs to hold meetings to review business performance, which also reduces operational costs. <img loading="lazy" decoding="async" width="1014" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-obligations-are-companies-in-_Dormant_-status-exempt-from_-1014x1024.webp" alt="What obligations are companies in "Dormant" status exempt from? " class="wp-image-13752" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-obligations-are-companies-in-_Dormant_-status-exempt-from_-1014x1024.webp 1014w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-obligations-are-companies-in-_Dormant_-status-exempt-from_-297x300.webp 297w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-obligations-are-companies-in-_Dormant_-status-exempt-from_-150x150.webp 150w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-obligations-are-companies-in-_Dormant_-status-exempt-from_-768x776.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-obligations-are-companies-in-_Dormant_-status-exempt-from_-149x150.webp 149w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-obligations-are-companies-in-_Dormant_-status-exempt-from_.webp 1212w" sizes="auto, (max-width: 1014px) 100vw, 1014px" /> What obligations are companies in “Dormant” status exempt from? Despite being exempt from certain obligations, a dormant company must comply with legal requirements applicable to all companies (both active and dormant). Thus, a dormant company must: Have at least one director and one shareholder. Maintain a registered address in Hong Kong. Have a company secretary. Renew the Business Registration Certificate (BRC) and pay the corresponding government fee. Report any changes in the company structure and details of officers to the Companies Registry. Submit a Profits Tax Return (PTR) issued by the Inland Revenue Department. Maintain and keep a register of significant controllers. Maintain and keep registers of directors, shareholders, and secretaries. Thus, despite being exempt from certain obligations, a dormant company must comply with specific requirements to meet legal standards. Ensure that all obligations are fulfilled on time to avoid penalties and fines from tax authorities and regulators. <img loading="lazy" decoding="async" width="590" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-What-obligations-must-a-company-fulfill-despite-its-dormant-status_-590x1024.webp" alt="What obligations must a company fulfill despite its dormant status" class="wp-image-13754" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-What-obligations-must-a-company-fulfill-despite-its-dormant-status_-590x1024.webp 590w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-What-obligations-must-a-company-fulfill-despite-its-dormant-status_-173x300.webp 173w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-What-obligations-must-a-company-fulfill-despite-its-dormant-status_-768x1333.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-What-obligations-must-a-company-fulfill-despite-its-dormant-status_-885x1536.webp 885w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-What-obligations-must-a-company-fulfill-despite-its-dormant-status_-86x150.webp 86w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-What-obligations-must-a-company-fulfill-despite-its-dormant-status_.webp 1168w" sizes="auto, (max-width: 590px) 100vw, 590px" /> What obligations must a company fulfill despite its dormant status Key conditions for obtaining “dormant” company status include the absence of operational activities. The company must not conduct commercial operations, including generating income or selling goods and services. Only transactions necessary for fulfilling mandatory legal requirements—such as paying government fees, corporate secretary services, and registered address fees—are permitted. Companies not eligible for “dormant” status: Financial institutions (banks, insurance companies). Companies engaged in asset or securities transactions. Organizations involved in managing reserve funds. Advantages of Transitioning to “Dormant” Company Status Reduction in Administrative Costs The most obvious benefit of transitioning to “dormant” company status is the significant reduction in operational and administrative expenses. Companies are exempt from the need to conduct audits, submit annual returns to the Hong Kong Companies Registry, and organize general meetings of shareholders.. Preservation of Legal Entity A “dormant” company continues to exist in a legal sense, allowing it to resume operations at any time without the need for re-registration or creating a new company. This is much cheaper and simpler than closing a company and subsequently restoring it. For example, a company planning to temporarily suspend operations due to market changes or resource shortages can use this status to maintain its business structure and shares. When the market recovers, the company can easily resume active operations. Protection of Assets and Intellectual Property Companies with assets or intellectual property can use the “dormant” status to protect these assets during periods of inactivity. This status also allows for the retention of control over corporate assets, trademarks, and patents without the need for liquidation. <img loading="lazy" decoding="async" width="907" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Advantages-of-_Dormant_-Company-Status__-907x1024.webp" alt="Advantages of "Dormant" Company Status" class="wp-image-13755" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Advantages-of-_Dormant_-Company-Status__-907x1024.webp 907w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Advantages-of-_Dormant_-Company-Status__-266x300.webp 266w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Advantages-of-_Dormant_-Company-Status__-768x867.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Advantages-of-_Dormant_-Company-Status__-1360x1536.webp 1360w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Advantages-of-_Dormant_-Company-Status__-133x150.webp 133w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Advantages-of-_Dormant_-Company-Status__.webp 1441w" sizes="auto, (max-width: 907px) 100vw, 907px" /> Advantages of “Dormant” Company Status Process of Obtaining “Dormant” Company Status Preparation for Obtaining “Dormant” Status Before a company can apply for “dormant” status, it is important to complete several preparatory steps. These actions will help ensure that the process goes smoothly and efficiently. Review of the Company’s Articles of Association Ensure that there are no restrictions in the Articles of Association that would prevent the company from transitioning to “dormant” status. Some articles may contain provisions requiring the consent of other shareholders for a temporary suspension of activities. Updating Financial Documents Even if the company plans to become “dormant,” it is important to ensure that its financial statements are up- to-date. This is especially crucial if the last audit report is outdated. Updated financial documents are necessary for submitting to the relevant government authorities. Checking for Compliance Violations The company should not have any overdue legal obligations. After the preparatory stage, several sequential steps must be completed: Adoption of a Special Resolution The company’s shareholders must adopt a special resolution to transition the company to “dormant” status. This requires convening a general meeting of shareholders and obtaining at least 75% of the votes in favor. Submission of the Resolution to the Companies Registry Once the resolution is adopted, it must be submitted to the Hong Kong Companies Registry. The documents should be filed within 15 days of the resolution’s adoption. Ensure Approval of Dormant Status by the Companies Registry After submitting the resolution to the Registry, it is important to ensure that the Registry has reviewed the request positively and reflected the Dormant status in the registry How long can a company remain in “dormant” status? Companies in Hong Kong can remain in “dormant” status indefinitely. This is particularly convenient for organizations that do not wish to liquidate their business but plan to resume operations in the future. <img loading="lazy" decoding="async" width="484" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Procedure-for-Obtaining-_Dormant_-Company-Status-1-484x1024.webp" alt="Procedure for Obtaining "Dormant" Company Status " class="wp-image-13756" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Procedure-for-Obtaining-_Dormant_-Company-Status-1-484x1024.webp 484w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Procedure-for-Obtaining-_Dormant_-Company-Status-1-142x300.webp 142w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Procedure-for-Obtaining-_Dormant_-Company-Status-1-768x1624.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Procedure-for-Obtaining-_Dormant_-Company-Status-1-726x1536.webp 726w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Procedure-for-Obtaining-_Dormant_-Company-Status-1-968x2048.webp 968w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Procedure-for-Obtaining-_Dormant_-Company-Status-1-71x150.webp 71w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Procedure-for-Obtaining-_Dormant_-Company-Status-1-scaled.webp 1211w" sizes="auto, (max-width: 484px) 100vw, 484px" /> Procedure for Obtaining “Dormant” Company Status What to Do If the Company Resumes Operations? According to Section 5 of the Companies Ordinance, a dormant company ceases to be dormant when: It passes and submits to the Companies Registry for registration a special resolution stating that the company intends to carry out a commercial operation. The company has already undertaken such an operation. After the company regains active status, it is necessary to: Adopt a new special resolution to resume operations. Submit the resolution to the Companies Registry. If the date of the resolution to cease dormant status falls on the 42nd day or earlier of the company’s registration anniversary, submit the Annual Return (NAR1) for the year in which the dormant status ended. Prepare an audit of the financial statements for the year in which the dormant status was terminated. Subsequently, comply with all legal requirements applicable to companies with active status. It is important to note that by law, even if a special resolution is not submitted, if a dormant company undertakes a commercial operation, it ceases to be dormant and must comply with all legal requirements applicable to active companies. <img loading="lazy" decoding="async" width="580" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Process-of-Restoring-Active-Company-Status-in-Hong-Kong-580x1024.webp" alt="Process of Restoring Active Company Status in Hong Kong" class="wp-image-13750" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Process-of-Restoring-Active-Company-Status-in-Hong-Kong-580x1024.webp 580w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Process-of-Restoring-Active-Company-Status-in-Hong-Kong-170x300.webp 170w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Process-of-Restoring-Active-Company-Status-in-Hong-Kong-768x1356.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Process-of-Restoring-Active-Company-Status-in-Hong-Kong-870x1536.webp 870w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Process-of-Restoring-Active-Company-Status-in-Hong-Kong-1160x2048.webp 1160w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Process-of-Restoring-Active-Company-Status-in-Hong-Kong-85x150.webp 85w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Process-of-Restoring-Active-Company-Status-in-Hong-Kong.webp 1212w" sizes="auto, (max-width: 580px) 100vw, 580px" /> Process of Restoring Active Company Status in Hong Kong Frequently Asked Questions (FAQ) What is a “dormant” company? It is a registered private company that has temporarily ceased operations and does not conduct commercial activities, except for those minimally required under Hong Kong law. What are the advantages of having a “dormant” company status? Reduction of administrative costs, preservation of legal entity status, protection of assets and intellectual property, and the ability to quickly reactivate the company for continued operations or starting new ones. What expenses can be reduced by converting a company to “dormant” status? Exemption from filing the Annual Return with the Companies Registry, conducting mandatory audits, and holding annual general meetings of shareholders. What obligations remain for a “dormant” company? Having a director and shareholder, a registered address in Hong Kong, a corporate secretary, renewing the business registration certificate, filing a profits tax return, maintaining registers, and informing about changes in the company. How to obtain “dormant” company status? Check the company’s Articles of Association, update financial documents, pass a special resolution, submit it to the Companies Registry, and ensure approval. How long can a company remain in “dormant” status? Indefinitely, which is convenient for future resumption of activities. What to do if the company resumes operations? Adopt a new resolution, submit it to the Companies Registry, prepare an audit, and comply with all legal requirements for active companies. Which companies cannot obtain “dormant” status? Financial institutions, companies dealing with assets or securities, and organizations involved in managing reserve funds. Ask a question Temporary Freezing of a Company in Hong Kong
How to Conduct a Share Issuance in Hong Kong: A Comprehensive Guide for Companies
In the business world, Hong Kong is recognized as a hub for international companies due to its favorable tax regime and legal system. However, as a company grows and requires more capital for expansion, the question arises: how to effectively raise additional funds? Issuing shares is one of the best ways to attract capital to finance the company's growth.
In the business world, Hong Kong is recognized as a hub for international companies due to its favorable tax regime and legal system. However, as a company grows and requires more capital for expansion, the question arises: how to effectively raise additional funds? Issuing shares is one of the best ways to attract capital to finance the company’s growth. When establishing a private limited company in Hong Kong, a shareholder can independently determine the number of shares that will be considered as the company’s share capital. According to the Hong Kong Companies Ordinance (Cap. 622), such a company is required to have at least one share with a nominal value of 1 Hong Kong dollar. A private limited company can expand its number of shareholders to 50 people. This allows the company to attract additional capital by issuing new shares to new shareholders, increasing their total number. This process is called share issuance (issuing new shares). <img loading="lazy" decoding="async" width="1024" height="497" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-According-to-the-Hong-Kong-Companies-Ordinance-Cap.-622-a-private-limited-company-is-required-to-have-at-least-one-share-with-a-nominal-value-of-1-Hong-Kong-dolla-1024x497.webp" alt="According to the Hong Kong Companies Ordinance (Cap. 622)" class="wp-image-13536" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-According-to-the-Hong-Kong-Companies-Ordinance-Cap.-622-a-private-limited-company-is-required-to-have-at-least-one-share-with-a-nominal-value-of-1-Hong-Kong-dolla-1024x497.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-According-to-the-Hong-Kong-Companies-Ordinance-Cap.-622-a-private-limited-company-is-required-to-have-at-least-one-share-with-a-nominal-value-of-1-Hong-Kong-dolla-300x146.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-According-to-the-Hong-Kong-Companies-Ordinance-Cap.-622-a-private-limited-company-is-required-to-have-at-least-one-share-with-a-nominal-value-of-1-Hong-Kong-dolla-768x373.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-According-to-the-Hong-Kong-Companies-Ordinance-Cap.-622-a-private-limited-company-is-required-to-have-at-least-one-share-with-a-nominal-value-of-1-Hong-Kong-dolla-250x121.webp 250w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-According-to-the-Hong-Kong-Companies-Ordinance-Cap.-622-a-private-limited-company-is-required-to-have-at-least-one-share-with-a-nominal-value-of-1-Hong-Kong-dolla.webp 1363w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> According to the Hong Kong Companies Ordinance (Cap. 622) What Objectives Does Share Issuance Achieve? Issuing company shares may be necessary to achieve various objectives, such as: Attracting Investments: One of the main reasons for issuing shares is to obtain additional financial resources for business expansion, strengthening its position in the current market, investing in new projects, or repaying existing debts. Increasing the Number of Shareholders: Issuing new shares allows attracting new investors, which contributes to diversifying the shareholder composition, capital, experience, and knowledge, as well as reducing dependence on a limited circle of shareholders. Strengthening Market Positions: The attracted funds can be directed towards strategic acquisitions or mergers, which strengthens the company’s market position. Employee Motivation: Share issuance can be part of an employee reward system, such as providing stock options, which promotes their motivation and retention in the company. These objectives can contribute to the sustainable development and long-term growth of the company. This article will discuss the process of share issuance in a private limited company in Hong Kong, describing the main stages and legal requirements. <img loading="lazy" decoding="async" width="862" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-What-Objectives-Does-Share-Issuance-Achieve_-862x1024.webp" alt="What Objectives Does Share Issuance Achieve?" class="wp-image-13537" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-What-Objectives-Does-Share-Issuance-Achieve_-862x1024.webp 862w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-What-Objectives-Does-Share-Issuance-Achieve_-252x300.webp 252w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-What-Objectives-Does-Share-Issuance-Achieve_-768x913.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-What-Objectives-Does-Share-Issuance-Achieve_-126x150.webp 126w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-What-Objectives-Does-Share-Issuance-Achieve_.webp 1168w" sizes="auto, (max-width: 862px) 100vw, 862px" /> What Objectives Does Share Issuance Achieve? Preparing for Share Issuance in Hong Kong Preparing to issue shares in a private company in Hong Kong requires careful execution of several important steps in accordance with the Hong Kong Companies Ordinance. Here are the key steps: Review of the Memorandum and Articles of Association (MOA): Before initiating a share issuance, it is essential to thoroughly review the company’s MOA. It may contain restrictions or special conditions for issuing shares, such as the need for shareholder approval. This aligns with the requirements of the Hong Kong Companies Ordinance, which governs the company’s internal procedures. Compliance with Regulatory Requirements: The company must ensure compliance with all regulatory obligations, including: Timely submission of NAR1 reports to the Hong Kong Companies Registry. Renewal of the business registration certificate. Filing of tax returns with the Inland Revenue Department and ensuring no tax liabilities. Adherence to other mandatory requirements set by Hong Kong law. It is difficult to imagine the attractiveness of a share issuance for a company that has outstanding basic legal obligations. Register of Members: Ensure that it contains up-to-date information on the company’s current shareholders. The register must be maintained at the company’s registered office in Hong Kong. According to the Companies Ordinance, the register should include: The name and address of each shareholder. The number and classes of shares owned by each shareholder. Dates of share acquisition and any changes in the shareholding structure. The register must be available for inspection by shareholders and regulatory authorities, ensuring transparency and accuracy. Share Certificates: Ensure that all current shareholders have share certificates signed by the company’s director. As stipulated by the Companies Ordinance, a share certificate confirms ownership and includes: The company’s name and registration number. The shareholder’s name and the number of shares. The class of shares and the unique certificate number. The date of certificate issuance. The certificate serves as legal proof of share ownership and must be securely stored. The company must not neglect its duty, and the director should exercise due diligence in issuing share certificates to confirm the current shareholding structure. <img loading="lazy" decoding="async" width="720" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Preparing-for-Share-Issuance-in-Hong-Kong-720x1024.webp" alt="Preparing for Share Issuance in Hong Kong" class="wp-image-13538" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Preparing-for-Share-Issuance-in-Hong-Kong-720x1024.webp 720w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Preparing-for-Share-Issuance-in-Hong-Kong-211x300.webp 211w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Preparing-for-Share-Issuance-in-Hong-Kong-768x1092.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Preparing-for-Share-Issuance-in-Hong-Kong-1080x1536.webp 1080w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Preparing-for-Share-Issuance-in-Hong-Kong-106x150.webp 106w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Preparing-for-Share-Issuance-in-Hong-Kong.webp 1212w" sizes="auto, (max-width: 720px) 100vw, 720px" /> Preparing for Share Issuance in Hong Kong These steps ensure legal compliance and facilitate a successful share issuance, supporting the company’s sustainable development. Stage of Share Issuance in Hong Kong Conducting a Board Meeting After confirming compliance with all necessary conditions, the company proceeds to the next crucial step—holding a board meeting. At this stage, an official decision is made to issue new shares. The minutes of the meeting should be meticulously documented and include the following key elements: Number of Shares to be Issued: Determining the exact number of shares to be offered for sale, considering the company’s strategic goals and market conditions or specific agreements. Type of Shares (Common or Preferred): Deciding which classes of shares will be issued, taking into account the rights and privileges they provide to shareholders. Common shares typically grant voting rights, while preferred shares may offer fixed dividends. Nominal Value of Shares: Establishing the nominal value of each share, which can affect their perceived value in the market and the company’s financial indicators. List of Potential Shareholders: Identifying and approving the list of individuals or organizations to whom the new shares will be offered. This may include existing shareholders as well as new investors who are strategically important to the company. Additionally, the meeting may discuss other issues such as the share placement strategy, marketing support for the issuance, and assessment of potential risks. Decisions made at this stage should align with the company’s long-term goals. <img loading="lazy" decoding="async" width="1024" height="979" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-The-board-meeting-is-the-starting-point-in-the-share-issuance-process-of-a-Hong-Kong-company-where-key-issuance-parameters-are-determined-1024x979.webp" alt="The board meeting is the starting point in the share issuance process of a Hong Kong company, where key issuance parameters are determined." class="wp-image-13539" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-The-board-meeting-is-the-starting-point-in-the-share-issuance-process-of-a-Hong-Kong-company-where-key-issuance-parameters-are-determined-1024x979.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-The-board-meeting-is-the-starting-point-in-the-share-issuance-process-of-a-Hong-Kong-company-where-key-issuance-parameters-are-determined-300x287.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-The-board-meeting-is-the-starting-point-in-the-share-issuance-process-of-a-Hong-Kong-company-where-key-issuance-parameters-are-determined-768x734.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-The-board-meeting-is-the-starting-point-in-the-share-issuance-process-of-a-Hong-Kong-company-where-key-issuance-parameters-are-determined-157x150.webp 157w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-The-board-meeting-is-the-starting-point-in-the-share-issuance-process-of-a-Hong-Kong-company-where-key-issuance-parameters-are-determined.webp 1212w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> The board meeting is the starting point in the share issuance process of a Hong Kong company, where key issuance parameters are determined. Shareholder Approval of Share Issuance in Hong Kong The procedure for approving the issuance of shares is a key stage that requires the consent of the company’s shareholders. This consent can be achieved through two main methods: At a general meeting of shareholders; Through written consent from all involved parties. At the general meeting of shareholders, all details of the upcoming share issuance are discussed, such as the number of shares, their nominal value, and the potential impact on the company’s current capital structure. Shareholders have the opportunity to ask questions and express their opinions before making a final decision. Alternatively, written consent can be used to expedite the process, especially if all shareholders agree with the proposed terms of issuance. This avoids the need for a meeting, which can be convenient for companies with a small number of shareholders or in situations requiring quick decisions. If the company has multiple shareholders, they may be granted preemptive rights to purchase new shares. This right allows existing shareholders to maintain their stake in the company, preventing dilution of their equity. The preemptive right can be exercised within a specified period, after which the remaining shares may be offered to new investors. Thus, the process of approving share issuance in Hong Kong is aimed at ensuring transparency and protecting the interests of all shareholders, contributing to the company’s sustainable development. <img loading="lazy" decoding="async" width="876" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Options-for-Shareholder-Approval-of-Share-Issuance-876x1024.webp" alt="Options for Shareholder Approval of Share Issuance" class="wp-image-13540" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Options-for-Shareholder-Approval-of-Share-Issuance-876x1024.webp 876w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Options-for-Shareholder-Approval-of-Share-Issuance-257x300.webp 257w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Options-for-Shareholder-Approval-of-Share-Issuance-768x898.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Options-for-Shareholder-Approval-of-Share-Issuance-128x150.webp 128w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Options-for-Shareholder-Approval-of-Share-Issuance.webp 1212w" sizes="auto, (max-width: 876px) 100vw, 876px" /> Options for Shareholder Approval of Share Issuance Preparation of the Share Issuance Agreement After shareholder approval, it is necessary to draft an agreement that details all the conditions of the share issuance. This document plays a crucial legal role in protecting the interests of the company, as well as existing and new shareholders. The agreement should clearly outline payment terms, distribution of rights, and other important parameters to ensure transparency and clarity of the transaction. Key elements that the share issuance agreement should include: Number of Shares: Specifies the exact number of shares to be issued, allowing determination of the new shareholders’ participation in the company. Transaction Amount: Defines the total value of the share issuance, including the price per share and the total amount the company intends to raise. Rights of New Shareholders: Describes the rights and privileges granted to new shareholders, such as voting rights, dividend rights, and other important aspects. Payment and Transfer Terms: Establishes specific deadlines for payment and transfer of shares to new shareholders, ensuring adherence to agreements and timely fulfillment of obligations. Additionally, the agreement may include terms for exiting the share capital, dispute resolution procedures, and other legal aspects to help avoid misunderstandings in the future. This makes the agreement an important tool for maintaining trust and stability in the relationship between the company and its shareholders. <img loading="lazy" decoding="async" width="1024" height="783" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-The-share-issuance-agreement-protects-the-interests-of-all-parties-and-sets-the-terms-of-the-transaction-1024x783.webp" alt="The share issuance agreement protects the interests of all parties and sets the terms of the transaction." class="wp-image-13541" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-The-share-issuance-agreement-protects-the-interests-of-all-parties-and-sets-the-terms-of-the-transaction-1024x783.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-The-share-issuance-agreement-protects-the-interests-of-all-parties-and-sets-the-terms-of-the-transaction-300x229.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-The-share-issuance-agreement-protects-the-interests-of-all-parties-and-sets-the-terms-of-the-transaction-768x587.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-The-share-issuance-agreement-protects-the-interests-of-all-parties-and-sets-the-terms-of-the-transaction-196x150.webp 196w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-The-share-issuance-agreement-protects-the-interests-of-all-parties-and-sets-the-terms-of-the-transaction.webp 1405w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> The share issuance agreement protects the interests of all parties and sets the terms of the transaction. Submission of Form NSC1 to the Hong Kong Companies Registry After completing the share issuance process, the company must submit Form NSC1 to the Hong Kong Companies Registry within one month. This step is critically important for complying with all legal norms and maintaining up-to-date corporate information. Form NSC1 includes key data that must be accurately and completely specified: Number of Issued Shares: Indicates the total number of shares issued in the transaction, allowing for an update of the company’s capital data. Amount Paid for Shares: Records the total amount received by the company for the issued shares, which is important for financial reporting and tax purposes. Type of Shares: Specifies which shares were issued—common or preferred—helping to determine the rights and privileges of new shareholders. Details of New Shareholders: Includes information about new shareholders, such as their names, addresses, and the number of shares acquired, necessary for updating the company’s register of members. Submitting Form NSC1 not only ensures the company’s compliance with legal requirements but also promotes transparency and strengthens trust in relationships with shareholders and regulatory authorities. Late submission or inaccurate information can lead to fines and other legal consequences, so it is important to pay due attention to this process. Additionally, regularly updating data in the Companies Registry helps maintain the relevance of company information, which can be useful for potential investors and partners when assessing the company’s reliability and stability. <img loading="lazy" decoding="async" width="1013" height="564" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Form-NSC1.webp" alt="Form NSC1" class="wp-image-13542" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Form-NSC1.webp 1013w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Form-NSC1-300x167.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Form-NSC1-768x428.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Form-NSC1-250x139.webp 250w" sizes="auto, (max-width: 1013px) 100vw, 1013px" /> Form NSC1 Administrative Procedures After Share Issuance in Hong Kong Issuance of Share Certificates After submitting Form NSC1, the company must issue share certificates. These documents confirm ownership of shares and serve as important legal evidence for shareholders. The process of issuing certificates must be completed within two months after the share placement. Share certificates should include the following information: Company Name: The full name of the company issuing the shares. Registration Number: The unique identifier of the company in the Companies Registry. Number of Shares: The total number of shares owned by the shareholder. Type of Shares: The class of shares, such as common or preferred. Shareholder’s Name: The full name of the share owner. Date of Issuance: The date the certificate is issued. It is essential to ensure the accuracy and completeness of the information on the certificates, as they confirm ownership rights. Shareholders are advised to keep certificates in a secure place and notify the company of any loss or damage to obtain duplicates. <img loading="lazy" decoding="async" width="1015" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/8.-Structure-of-a-Share-Certificate-in-Hong-Kong-1015x1024.webp" alt="Structure of a Share Certificate in Hong Kong " class="wp-image-13543" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/8.-Structure-of-a-Share-Certificate-in-Hong-Kong-1015x1024.webp 1015w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/8.-Structure-of-a-Share-Certificate-in-Hong-Kong-297x300.webp 297w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/8.-Structure-of-a-Share-Certificate-in-Hong-Kong-150x150.webp 150w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/8.-Structure-of-a-Share-Certificate-in-Hong-Kong-768x775.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/8.-Structure-of-a-Share-Certificate-in-Hong-Kong-149x150.webp 149w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/8.-Structure-of-a-Share-Certificate-in-Hong-Kong.webp 1168w" sizes="auto, (max-width: 1015px) 100vw, 1015px" /> Structure of a Share Certificate in Hong Kong Updating the Register of Members in Hong Kong The final step is updating the register of members. This document reflects all information about new shareholders, their shares, and types of shares. The process must be completed within two months after the share issuance. In Hong Kong, maintaining an up-to-date register of members is mandatory for companies. An updated register of members helps the company effectively manage corporate rights and obligations and promptly notify shareholders of key events, such as meetings and dividend payments. The accuracy of the information in the register is crucial for upholding shareholder rights and strengthening trust between the company and its investors. <img loading="lazy" decoding="async" width="664" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/9.-Register-of-Members-in-Hong-Kong-664x1024.webp" alt="Register of Members in Hong Kong" class="wp-image-13544" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/9.-Register-of-Members-in-Hong-Kong-664x1024.webp 664w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/9.-Register-of-Members-in-Hong-Kong-195x300.webp 195w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/9.-Register-of-Members-in-Hong-Kong-768x1184.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/9.-Register-of-Members-in-Hong-Kong-997x1536.webp 997w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/9.-Register-of-Members-in-Hong-Kong-97x150.webp 97w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/9.-Register-of-Members-in-Hong-Kong.webp 1212w" sizes="auto, (max-width: 664px) 100vw, 664px" /> Register of Members in Hong Kong Updating the Register of Significant Controllers Changes in the share capital structure may alter the composition of the company’s significant controllers. If this occurs, the Register of Significant Controllers must be updated. This register includes information about individuals (or entities) who meet at least one of the following criteria: Owns more than 25% of the company’s shares directly or indirectly, or, if the company has no share capital, is entitled to more than 25% of the capital or profits. Controls more than 25% of the company’s voting rights. Can appoint or remove the majority of the board of directors. Exercises or has the right to exercise significant influence or control over the company. Exercises or has the right to exercise significant influence or control over the activities of a trust or firm that is not a legal entity, where trustees or members meet any of the first four conditions concerning the company. If this requirement is violated, the company and each responsible person commit an offense, and each is subject to a level 4 fine, with an additional fine of HKD 700 for each day the offense continues. Notifying Business Partners If necessary, inform banks, clients, suppliers, and other partners with whom the company has business relationships. Frequently Asked Questions (FAQ) What taxes need to be paid when issuing shares? In Hong Kong, there is no stamp duty on the issuance of shares; however, the company must comply with all tax obligations. What if shareholders disagree with the share issuance? If shareholders reject the proposal to issue shares, the process stops. The company must reconsider the terms or offer shareholders new opportunities. Can shares be issued to foreign investors? Yes, there are no restrictions in Hong Kong on issuing shares to foreign investors. Is a corporate secretary required for share issuance? Yes, a corporate secretary is necessary for the proper documentation and compliance with all legal requirements. Ask a question Article 14. Issue of money. ENG
Apostille of Company Documents in Hong Kong: A Complete Guide
Conducting international business requires knowledge of various legal intricacies, especially when it comes to handling documents. One such tool is the apostille—a certification that verifies the authenticity of a document for use abroad. In 1961, the Hague Convention established the apostille to simplify the legalization process.
Conducting international business requires knowledge of various legal intricacies, especially when it comes to handling documents. One such tool is the apostille—a certification that verifies the authenticity of a document for use abroad. In 1961, the Hague Convention established the apostille to simplify the legalization process. For businesses operating or planning to operate outside their jurisdiction, the apostille plays a crucial role. It certifies that company documents, such as certificates of incorporation, articles of association, or corporate agreements, are recognized as valid abroad. Hong Kong, as one of the leading international business jurisdictions, is also a participant in the Hague Convention. This means that apostilled documents issued in Hong Kong are accepted in most countries worldwide, significantly simplifying international document exchange. This article will explore what an apostille is, which documents are subject to apostille, and the apostille process. <img loading="lazy" decoding="async" width="1024" height="610" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-An-apostille-1024x610.webp" alt="An apostille" class="wp-image-13576" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-An-apostille-1024x610.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-An-apostille-300x179.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-An-apostille-768x458.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-An-apostille-250x150.webp 250w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-An-apostille.webp 1363w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> An apostille The Hague Apostille Convention The apostille is accepted in countries that are parties to the Hague Convention. It is important to ensure that the country where the documents are intended to be used is a participant in the Convention. Countries that are parties to the Hague Apostille Convention (including territories) include: Australia, Austria, Azerbaijan, Albania, Andorra, Antigua and Barbuda, Argentina, Armenia, Bahamas, Barbados, Bahrain, Belarus, Belize, Belgium, Bulgaria, Bosnia and Herzegovina, Botswana, Brazil, Brunei Darussalam, Burundi, Vanuatu, United Kingdom, Hungary, Venezuela, Honduras, Grenada, Greece, Georgia, Hong Kong (SAR of the People’s Republic of China), Denmark, Dominica, Dominican Republic, Israel, India, Ireland, Iceland, Spain, Italy, Cape Verde, Kazakhstan, Cyprus, Kyrgyzstan, Colombia, Kosovo, Costa Rica, People’s Republic of China, Latvia, Lesotho, Liberia, Lithuania, Liechtenstein, Luxembourg, Mauritius, Macedonia, Malawi, Malta, Morocco, Marshall Islands, Macau (China), Mexico, Moldova, Monaco, Mongolia, Namibia, Netherlands, Nicaragua, Niue, New Zealand, Norway, Oman, Cook Islands, Panama, Paraguay, Peru, Poland, Portugal, Russian Federation, Romania, El Salvador, Samoa, San Marino, Sao Tome and Principe, Swaziland, Seychelles, Saint Vincent and the Grenadines, Saint Kitts and Nevis, Saint Lucia, Serbia, Slovakia, Slovenia, United States of America, Suriname, Tajikistan, Tonga, Trinidad and Tobago, Turkey, Ukraine, Uzbekistan, Uruguay, Fiji, Finland, France, Germany, Croatia, Montenegro, Czech Republic, Chile, Switzerland, Sweden, Ecuador, Estonia, South Africa, South Korea, Japan. The 1961 Hague Convention laid the foundation for simplifying the recognition process of foreign documents. Before the apostille system was introduced, documents intended for use abroad had to undergo a lengthy legalization process through consulates and embassies. The Convention simplified this process by creating a unified standard for document authentication. As a participant in the Hague Convention, Hong Kong uses the apostille to verify the authenticity of corporate documents issued by government authorities or notarized by notaries. The main body responsible for issuing apostilles in Hong Kong is the High Court. This procedure ensures that documents apostilled in Hong Kong will be recognized in other countries that are parties to the Convention. <img loading="lazy" decoding="async" width="951" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-The-High-Court-of-Hong-Kong-is-the-authority-responsible-for-issuing-apostilles-in-Hong-Kong-951x1024.webp" alt="The High Court of Hong Kong is the authority responsible for issuing apostilles in Hong Kong" class="wp-image-13577" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-The-High-Court-of-Hong-Kong-is-the-authority-responsible-for-issuing-apostilles-in-Hong-Kong-951x1024.webp 951w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-The-High-Court-of-Hong-Kong-is-the-authority-responsible-for-issuing-apostilles-in-Hong-Kong-279x300.webp 279w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-The-High-Court-of-Hong-Kong-is-the-authority-responsible-for-issuing-apostilles-in-Hong-Kong-768x827.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-The-High-Court-of-Hong-Kong-is-the-authority-responsible-for-issuing-apostilles-in-Hong-Kong-139x150.webp 139w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-The-High-Court-of-Hong-Kong-is-the-authority-responsible-for-issuing-apostilles-in-Hong-Kong.webp 1363w" sizes="auto, (max-width: 951px) 100vw, 951px" /> The High Court of Hong Kong is the authority responsible for issuing apostilles in Hong Kong For What Purposes Is Document Apostille Required? The apostille of documents is necessary for their official recognition and use outside of Hong Kong. It certifies the authenticity of documents and makes them legally valid in other countries that have signed the Hague Convention. The main instances where an apostille is required include: Opening a bank account in foreign banks. Providing documents to foreign partners and contractors. Participating in international tenders. Representing the company’s interests in other jurisdictions. Enrolling in a foreign educational institution. Getting married in a foreign country. Obtaining a work permit, residency, or citizenship in another country. Tax registration in another country. The apostille significantly speeds up the process of document recognition, eliminating the need for additional consular legalization in Hong Kong, and facilitates their use in countries that are parties to the Hague Convention. <img loading="lazy" decoding="async" width="623" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Purpose-of-Apostille-623x1024.webp" alt="Purpose of Apostille" class="wp-image-13578" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Purpose-of-Apostille-623x1024.webp 623w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Purpose-of-Apostille-182x300.webp 182w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Purpose-of-Apostille-768x1263.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Purpose-of-Apostille-934x1536.webp 934w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Purpose-of-Apostille-91x150.webp 91w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Purpose-of-Apostille.webp 1168w" sizes="auto, (max-width: 623px) 100vw, 623px" /> Purpose of Apostille Which Documents Can Be Apostilled in Hong Kong? The following documents are subject to apostille in Hong Kong: Documents issued by Hong Kong government authorities for legal entities: Certificate of Incorporation. Registration Form (NNC1). Business Registration Certificate (BRC). Memorandum and Articles of Association. Company particulars report (similar to an extract from the commercial register). Certificate of Continuing Registration (confirmation of the company’s active status). Annual Return (NAR1). Form ND2A/ND2B (changes in directors/secretaries). Certificate on Change of Name. Certificate of Tax Residency. Any other documents issued by the Hong Kong Companies Registry or the Inland Revenue Department. Documents issued by a corporate secretary: Certificate of Incumbency (certificate confirming information about the company’s beneficiaries). Documents issued by the company: Share Certificate. Minutes of meetings, resolutions of the board of directors and shareholders. Agreements/contracts with counterparties. Powers of attorney. Documents confirming the change of shareholders (Sold & Bought note, Instrument of Transfer). Register of members. Register of directors. Register of secretaries. Register of significant controllers. Documents issued by an auditor: Auditor’s report. Personal documents issued by government authorities or educational institutions: Birth certificates. Marriage certificates. Death certificates. University diplomas and school certificates. Police clearance certificates. Copies of passports. <img loading="lazy" decoding="async" width="523" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Documents-subject-to-apostille-in-Hong-Kong-include_-523x1024.webp" alt="Documents subject to apostille in Hong Kong include" class="wp-image-13579" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Documents-subject-to-apostille-in-Hong-Kong-include_-523x1024.webp 523w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Documents-subject-to-apostille-in-Hong-Kong-include_-153x300.webp 153w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Documents-subject-to-apostille-in-Hong-Kong-include_-768x1503.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Documents-subject-to-apostille-in-Hong-Kong-include_-785x1536.webp 785w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Documents-subject-to-apostille-in-Hong-Kong-include_-1046x2048.webp 1046w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Documents-subject-to-apostille-in-Hong-Kong-include_-77x150.webp 77w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Documents-subject-to-apostille-in-Hong-Kong-include_.webp 1212w" sizes="auto, (max-width: 523px) 100vw, 523px" /> Documents subject to apostille in Hong Kong include Apostille Procedure in Hong Kong There are three main ways to apostille documents in Hong Kong: 1. Certification by the Issuing Government Authority and Apostille by the High Court of Hong Kong. This method is generally applicable to documents issued by government authorities. Procedure: Request the document from the government authority. Certification of the document by the government authority (authorized person). Submit the document to the High Court for apostille. An authorized person from the relevant government authority certifies the document, and the High Court verifies the authenticity of the signature, position, and/or stamp of the government authority with an apostille stamp. Each document receives one apostille: 1 document = 1 apostille stamp. If the document consists of multiple pages, the apostille stamp is usually placed on the last or first page. The multi-page document is not bound by the government authority or the court. It is worth noting that there are exceptions. For example, a Certificate of Tax Residency issued by the Inland Revenue Department of Hong Kong cannot be certified without notarization. Example of an apostille stamp based on certification by an authorized person from the Hong Kong Companies Registry: Apostille of a document certified by the Hong Kong Registrar of Companies Example of an apostille stamp based on certification by an authorized person from the Inland Revenue Department of Hong Kong: Apostille of a document certified by the Hong Kong Inland Revenue Department 2. Notarization by a Notary in Hong Kong and Apostille by the High Court of Hong Kong. This method is used for documents not issued by government authorities, such as internal company documents. Procedure: Prepare the document. Notarization. Apostille by the High Court of Hong Kong. In this case, the apostille can be placed on the original document or its copy. The original document is provided to the notary, who can certify the original or make a copy and certify the copy. The High Court of Hong Kong then certifies the notary’s signature and stamp on the original or copy of the document. This method is generally applicable to documents issued by companies (internal documents) or when a combination of internal and government-issued documents needs to be apostilled. The notary binds the entire set of documents and places a notary stamp on the binding. The apostille stamp is then placed on the binding. In this case, multiple documents can be certified with one apostille stamp: multiple documents bound together = 1 apostille for the entire binding. Example of an apostille stamp based on notarization in Hong Kong: Apostille of a document certified by a notary in Hong Kong 3. Certification by a Commissioner for Oaths and Apostille by the High Court of Hong Kong. This method is used when it is not possible to certify the document with a government authority’s or notary’s signature and stamp. Procedure: Prepare the document. Affidavit (oath/affirmation regarding the document) in the Home Affairs Department. Apostille by the High Court of Hong Kong. Who can administer oaths? – The court and a person acting in a judicial capacity can administer an oath to a witness who is lawfully summoned or voluntarily appears before them. The usual procedure for administering an oath requires the person taking the oath to repeat the words of the oath prescribed by law after the official administering it. This type of certification is typically used in legal proceedings when required or permitted by law as evidence of the matters stated therein. However, for other documents, such as company documents (internal or issued by a government authority), they can also be certified with such an affidavit and subsequently apostilled by the High Court of Hong Kong. Nonetheless, this method is more of an exception than the rule for certifying documents that can typically be certified by a government authority or notary. Example of an apostille stamp certified by a Commissioner for Oaths in Hong Kong: Apostille of a document certified by the Commissioner of Oaths in Hong Kong <img loading="lazy" decoding="async" width="613" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-There-are-three-procedures-for-apostilling-documents-in-Hong-Kong_-613x1024.webp" alt="There are three procedures for apostilling documents in Hong Kong" class="wp-image-13574" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-There-are-three-procedures-for-apostilling-documents-in-Hong-Kong_-613x1024.webp 613w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-There-are-three-procedures-for-apostilling-documents-in-Hong-Kong_-180x300.webp 180w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-There-are-three-procedures-for-apostilling-documents-in-Hong-Kong_-768x1283.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-There-are-three-procedures-for-apostilling-documents-in-Hong-Kong_-920x1536.webp 920w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-There-are-three-procedures-for-apostilling-documents-in-Hong-Kong_-90x150.webp 90w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-There-are-three-procedures-for-apostilling-documents-in-Hong-Kong_.webp 1212w" sizes="auto, (max-width: 613px) 100vw, 613px" /> There are three procedures for apostilling documents in Hong Kong Frequently Asked Questions (FAQ) What is an apostille and why is it needed? An apostille is a special stamp that certifies the authenticity of a signature, seal, or stamp on a document, as well as its legal validity for use in other countries participating in the Hague Convention. The apostille eliminates the need for complex consular legalization, significantly simplifying international document circulation. For example, apostilled corporate documents can be used for opening bank accounts, participating in tenders, and other official procedures abroad. Which corporate documents can be apostilled in Hong Kong? Various corporate documents can be apostilled in Hong Kong, including: Certificate of Incorporation. Registration Form (NNC1). Business Registration Certificate (BRC). Memorandum and Articles of Association. Company particulars report (similar to an extract from the commercial register). Certificate of Continuing Registration (confirmation of the company’s active status). Annual Return (NAR1). Form ND2A/ND2B (changes in directors/secretaries). Certificate on Change of Name. Certificate of Tax Residency. Certificate of Incumbency (certificate confirming information about the company’s beneficiaries). Share Certificate. Minutes of meetings, resolutions of the board of directors and shareholders. Agreements/contracts with counterparties. Powers of attorney. Documents confirming the change of shareholders (Sold & Bought note, Instrument of Transfer). Register of members. Register of directors. Register of secretaries. Register of significant controllers. Any other documents issued by the Hong Kong Companies Registry or the Inland Revenue Department. How long does the apostille process take in Hong Kong? The duration of the apostille process depends on the type of document and the chosen method of certification. On average, the process takes between 5 to 10 business days. Ask a question Apostille
Key Requirements for Keeping Primary Documents in Hong Kong (Record keeping): A Comprehensive Guide for Businesses
In this article, we will explore the key document retention requirements faced by companies in Hong Kong. Our experts have prepared practical recommendations for improving document management systems, which will help not only comply with legal requirements but also optimize business management.
Proper management and storage of a company’s primary documents in Hong Kong is not only a legal obligation but also the foundation for sustainable and successful business operations. In today’s world, data is everything, and for businesses, accurate and transparent documentation is of utmost importance. Hong Kong, with its developed business environment, offers vast opportunities for companies but also requires strict compliance with reporting norms and regulations. Failure to meet these requirements can lead to serious financial and legal consequences. In this article, we will explore the key document retention requirements faced by companies in Hong Kong. Our experts have prepared practical recommendations for improving document management systems, which will help not only comply with legal requirements but also optimize business management. Necessity of Keeping Business Primary Documents in Hong Kong Keeping primary documents is not just a legal obligation but also a business management foundation that helps: Control the validity or legality of the company’s cash flow. Prevent business risks associated with lack of information or its inaccessibility. Keeping primary documents helps a company legally operate in the Hong Kong SAR and creates a healthy approach to business management and its “history.” This “history” may be required for submission to tax authorities, banks, investors, auditors, and internal control. Hong Kong tax legislation, specifically the Inland Revenue Ordinance (IRO), requires all companies to keep primary documentation of company activities in English or Chinese. These documents must be available for inspection at any time within 7 years from the date of the transaction. Failure to comply with this requirement may result in a fine of up to 100,000 HKD. <img loading="lazy" decoding="async" width="1024" height="711" src="https://www.vitaliberta.hk/wp-content/uploads/2024/12/1.-Responsibility-for-Non-Compliance-with-Primary-Documentation-Retention-Requirements-1024x711.webp" alt="Responsibility for Non-Compliance with Primary Documentation Retention Requirements" class="wp-image-13181" srcset="https://www.vitaliberta.hk/wp-content/uploads/2024/12/1.-Responsibility-for-Non-Compliance-with-Primary-Documentation-Retention-Requirements-1024x711.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/1.-Responsibility-for-Non-Compliance-with-Primary-Documentation-Retention-Requirements-300x208.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/1.-Responsibility-for-Non-Compliance-with-Primary-Documentation-Retention-Requirements-768x533.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/1.-Responsibility-for-Non-Compliance-with-Primary-Documentation-Retention-Requirements-1536x1066.webp 1536w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/1.-Responsibility-for-Non-Compliance-with-Primary-Documentation-Retention-Requirements-216x150.webp 216w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/1.-Responsibility-for-Non-Compliance-with-Primary-Documentation-Retention-Requirements.webp 1540w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> Responsibility for Non-Compliance with Primary Documentation Retention Requirements If expenses and losses from previous periods reduce income in subsequent financial years, primary documents for such expenses must be kept not for 7 years from the transaction date but from the moment the expense was offset against income to reduce the taxable base. <img loading="lazy" decoding="async" width="1024" height="499" src="https://www.vitaliberta.hk/wp-content/uploads/2024/12/2.-Minimum-Retention-Period-for-Primary-Documents-in-Hong-Kong-1024x499.webp" alt="Minimum Retention Period for Primary Documents in Hong Kong" class="wp-image-13175" srcset="https://www.vitaliberta.hk/wp-content/uploads/2024/12/2.-Minimum-Retention-Period-for-Primary-Documents-in-Hong-Kong-1024x499.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/2.-Minimum-Retention-Period-for-Primary-Documents-in-Hong-Kong-300x146.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/2.-Minimum-Retention-Period-for-Primary-Documents-in-Hong-Kong-768x374.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/2.-Minimum-Retention-Period-for-Primary-Documents-in-Hong-Kong-250x122.webp 250w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/2.-Minimum-Retention-Period-for-Primary-Documents-in-Hong-Kong.webp 1363w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> Minimum Retention Period for Primary Documents in Hong Kong What Documents Must Be Retained Documents Confirming Company Income In Hong Kong, companies are required to keep primary documents confirming revenue and income to ensure accurate accounting and compliance with the Inland Revenue Ordinance. Here are the main types of documents that need to be retained: Invoices. Must contain the following information: Invoice number in a clear chronological order; Invoice date; Client’s name and address; Description of goods or services, their quantity, and cost; Total invoice amount. Bank Statements. Records of all transactions on the company’s bank accounts used for reconciling receipts. Includes acquiring transactions. Receipts. Confirms receipt of cash payment and contains: Payment date; Payment amount; Description and quantity of goods or services. Contracts, Agreements. Must contain: Name, address, and details of the parties; Subject of sale; Terms of sale; Payment terms; Obligations of the parties. Any other documents that confirm the sale of goods, works, services to clients. <img loading="lazy" decoding="async" width="1024" height="888" src="https://www.vitaliberta.hk/wp-content/uploads/2024/12/3.-Primary-Documents-for-Company-Income-in-Hong-Kong-to-be-Retained-1024x888.webp" alt="Primary Documents for Company Income in Hong Kong to be Retained" class="wp-image-13176" srcset="https://www.vitaliberta.hk/wp-content/uploads/2024/12/3.-Primary-Documents-for-Company-Income-in-Hong-Kong-to-be-Retained-1024x888.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/3.-Primary-Documents-for-Company-Income-in-Hong-Kong-to-be-Retained-300x260.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/3.-Primary-Documents-for-Company-Income-in-Hong-Kong-to-be-Retained-768x666.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/3.-Primary-Documents-for-Company-Income-in-Hong-Kong-to-be-Retained-173x150.webp 173w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/3.-Primary-Documents-for-Company-Income-in-Hong-Kong-to-be-Retained.webp 1431w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> Primary Documents for Company Income in Hong Kong to be Retained Documents Confirming Company Expenses In Hong Kong, companies are required to keep primary documents confirming revenue and income to ensure accurate accounting in Hong Kong and compliance with the Inland Revenue Ordinance. Below are the main types of documents that need to be retained: Invoices: Invoice number; Invoice date; Supplier’s name and address; Payer’s name; Description of goods or services, their quantity, and cost; Total invoice amount. Bank Statements. Records of all transactions on the company’s bank accounts used for reconciling expenses. Receipts. Confirm the fact of cash payment. Must contain: Payment date; Payment amount; Description and quantity of purchased goods or services. Contracts, Agreements. Must contain: Name, address, and details of the parties; Subject of purchase; Purchase terms; Payment terms; Obligations of the parties. Credit and Debit Notes. Confirm adjustments in invoices and are used for accounting returns of goods or price adjustments. Lease and Rental Agreements. Confirm expenses for renting or leasing property. Include information on terms, conditions, and amounts of rental payments. Payroll Records. Records of all employee payments. Include information on amounts, dates, and recipients of payments. <img loading="lazy" decoding="async" width="1024" height="687" src="https://www.vitaliberta.hk/wp-content/uploads/2024/12/4-Primary-Documents-for-Company-Expense-Operations-in-Hong-Kong-to-be-Retained-1024x687.webp" alt="Primary Documents for Company Expense Operations in Hong Kong to be Retained" class="wp-image-13177" srcset="https://www.vitaliberta.hk/wp-content/uploads/2024/12/4-Primary-Documents-for-Company-Expense-Operations-in-Hong-Kong-to-be-Retained-1024x687.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/4-Primary-Documents-for-Company-Expense-Operations-in-Hong-Kong-to-be-Retained-300x201.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/4-Primary-Documents-for-Company-Expense-Operations-in-Hong-Kong-to-be-Retained-768x515.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/4-Primary-Documents-for-Company-Expense-Operations-in-Hong-Kong-to-be-Retained-1536x1030.webp 1536w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/4-Primary-Documents-for-Company-Expense-Operations-in-Hong-Kong-to-be-Retained-224x150.webp 224w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/4-Primary-Documents-for-Company-Expense-Operations-in-Hong-Kong-to-be-Retained.webp 1578w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> Primary Documents for Company Expense Operations in Hong Kong to be Retained Documents Confirming Asset Accounting Every company is required to keep records of assets such as office equipment, vehicles, land, and buildings. This requires recording the purchase date, asset cost, and any improvement expenses. An asset register helps control the use of company resources and minimize losses. Example of Accounting for Acquired Company Assets Asset Description Purchase Date Cost Office Equipment 15/10/2024 10 000 HKD Vehicle 10/01/2025 50 000 HKD Inventory and Cash All trading companies must conduct regular inventory at the end of the reporting period. This is important for determining profit and accurately calculating taxes. Inventory must also be documented for audit purposes. <img loading="lazy" decoding="async" width="858" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2024/12/5.-Main-Reasons-for-Businesses-in-Hong-Kong-to-Retain-Primary-Documentation-858x1024.webp" alt="Main Reasons for Businesses in Hong Kong to Retain Primary Documentation" class="wp-image-13178" srcset="https://www.vitaliberta.hk/wp-content/uploads/2024/12/5.-Main-Reasons-for-Businesses-in-Hong-Kong-to-Retain-Primary-Documentation-858x1024.webp 858w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/5.-Main-Reasons-for-Businesses-in-Hong-Kong-to-Retain-Primary-Documentation-251x300.webp 251w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/5.-Main-Reasons-for-Businesses-in-Hong-Kong-to-Retain-Primary-Documentation-768x917.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/5.-Main-Reasons-for-Businesses-in-Hong-Kong-to-Retain-Primary-Documentation-1286x1536.webp 1286w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/5.-Main-Reasons-for-Businesses-in-Hong-Kong-to-Retain-Primary-Documentation-126x150.webp 126w, https://www.vitaliberta.hk/wp-content/uploads/2024/12/5.-Main-Reasons-for-Businesses-in-Hong-Kong-to-Retain-Primary-Documentation.webp 1618w" sizes="auto, (max-width: 858px) 100vw, 858px" /> Main Reasons for Businesses in Hong Kong to Retain Primary Documentation How to Store Primary Documents in Hong Kong Companies can choose one or more methods for storing documents simultaneously. Paper Storage Organize documents by category (e.g., invoices, receipts, bank statements) and store them in folders and files. Use archival boxes for long-term storage to protect documents from damage. Store important documents in safes to protect against theft or damage. Electronic Storage Convert paper documents to digital format through scanning. Use a hard drive, stationary server, or cloud services (e.g., Google Drive, Dropbox, others) for storing and accessing documents from anywhere. Regularly back up and create backups to minimize the risk of data loss. Accounting Software, Document Management Systems Use specialized programs for organizing accounting, storing, and searching documents. Frequently Asked Questions (FAQ) How long must documents be kept in Hong Kong? All companies in Hong Kong are required to keep primary documents for at least 7 years from the date of the transaction. This includes all financial records such as invoices, bank statements, cash register tapes, receipts, and other documents confirming income and expenses. Even after ceasing operations, documents must remain archived until this period expires. Can documents be stored electronically? Yes, the law allows documents to be stored electronically if they are accessible upon request by regulatory authorities. It is important that electronic documents are preserved in an unalterable format, such as PDF/A. If documents are stored outside Hong Kong, they must be available for inspection within 7 days of a request from tax authorities. What happens if I cannot provide the necessary documents? If a company cannot provide the necessary documents within 7 days upon request by tax authorities, it faces fines that can reach up to 100,000 HKD. Additionally, non-compliance with document retention rules can lead to further inspections and audits. Therefore, it is important that all documents are kept in order and are accessible at any time. What documents must be retained mandatorily? All companies are required to retain the following types of documents: – Invoices. – Bank statements and checks. – Receipts. – Contracts and agreements. – Other documents reliably recording and confirming company income and expenses. How to ensure data protection when storing documents electronically? When storing documents electronically, it is important to use reliable systems with a high level of protection. The following measures will help protect data: – Use cloud services with data encryption (e.g., Google Drive or OneDrive). – Regularly back up information. – Appoint responsible individuals to monitor data access and storage security. – Ensure data access is only for authorized users. Ask a question Record Keeping in Hong Kong