Difference Between Hong Kong Certificate of Registration and Business License - Do You Really Know?

The Difference Between a Hong Kong Business Registration Certificate and a License - Do You Know It?

For entrepreneurs planning to start or already operating a business in Hong Kong, understanding the difference between a Hong Kong Business Registration Certificate and a business license is essential. While both relate to the legal operation of a business, they differ significantly in nature, purpose, and application procedures.

In today’s complex global economic environment and with the increasing frequency of cross-border commercial activities, clarifying these concepts helps ensure compliance and avoid legal risks caused by misunderstandings.

1. What Is a Hong Kong Business Registration Certificate?

A Business Registration Certificate BRC is an official document issued by the Inland Revenue Department IRD after a company completes its business registration. According to Section 11 of the Inland Revenue Ordinance, all individuals or companies conducting business in Hong Kong must register with the IRD and obtain a business registration certificate.

This certificate typically includes information such as the business name, address, nature of operations, registration number, and validity period. It serves as one of the fundamental documents proving a business’s legal existence within the tax system.

Since 2025, the IRD has further simplified the registration process. Many businesses can now renew their BRC online through the e-Registry service, significantly improving efficiency.

It is important to note that a Business Registration Certificate is not a business permit. It only confirms that the business has completed the required tax registration procedures and does not imply approval or authorization to operate in any regulated industry.

2. What Is a Business License?

The term business license is more commonly used on the Chinese mainland. In Hong Kong, there is no direct equivalent concept. However, for certain specific industries-such as food services, retail, and entertainment venues-companies must obtain a license or permit from relevant authorities before legally commencing operations.

These licenses are often colloquially referred to as Hong Kong business licenses. For example

Opening a restaurant requires applying for a food premises license from the Food and Environmental Hygiene Department FEHD.

Operating a bar or nightclub requires obtaining a liquor license from the Police Licensing Branch.

Tourism-related businesses may need approval from the Travel Industry Council or other related departments.

The application processes for these licenses are usually strict, and applicants must meet various requirements, including site conditions, hygiene standards, and fire safety regulations.

Notably, these permits are not issued by a single authority but are reviewed and granted by different regulatory bodies depending on the industry type. Before entering a particular sector, businesses must clearly understand the specific license types required and the corresponding application procedures.

3. Key Differences Between the Two

From the above explanations, we can identify the following key differences between a Hong Kong Business Registration Certificate and a business license

1. Nature

The BRC is proof of tax registration-a basic administrative requirement for all businesses.

A business license refers to an operational permit required in regulated industries and carries stronger regulatory implications.

2. Issuing Authority

The BRC is issued uniformly by the Inland Revenue Department.

Licenses are granted by various regulatory agencies, such as the FEHD, Police Force, Transport Department, etc.

3. Scope of Application

All businesses operating in Hong Kong must obtain a BRC.

Licenses apply only to certain regulated sectors; general trading companies may not require them.

4. Renewal Frequency

A BRC must be renewed annually or every two years if selected.

Some licenses have longer validity periods but may still require periodic inspections or renewal.

5. Legal Consequences

Failure to register a business may result in fines or prosecution.

Operating without the necessary license in a regulated industry could lead to criminal liability, which is far more serious.

4. Practical Considerations in Real-World Operations

In recent years, with the rise of cross-border e-commerce, freelancers, and small startups, more individuals and micro-enterprises have entered the Hong Kong market. However, due to a lack of understanding about the registration and licensing system, some mistakenly believe that having a Business Registration Certificate alone allows them to conduct any type of business.

This misconception often leads to violations and even investigations by enforcement agencies. For instance, in early 2025, a private yoga studio operated by a local influencer was inspected and ordered to shut down by the FEHD for lacking the appropriate license. Such cases serve as a reminder that businesses should fully understand the regulatory requirements of their respective industries and seek professional advice when necessary to ensure full compliance.

For Mainland enterprises planning to expand overseas, setting up a company in Hong Kong has become a common strategy. Understanding the local registration and licensing systems is particularly crucial in such cases. Many businesses rush into operations after company incorporation but neglect the subsequent licensing process, leading to project delays.

5. Conclusion

In summary, there is a fundamental distinction between a Hong Kong Business Registration Certificate and a business license. The former is a foundational requirement for legal business existence, while the latter is a prerequisite for engaging in regulated industries.

Only when both are properly obtained can a business truly operate in compliance and avoid unnecessary legal exposure. In an era of globalization, a clear understanding of these concepts not only enhances operational efficiency but also lays a solid foundation for future business expansion.