Hong Kong Startup Guide Step-by-Step License Application Process!

Entering Hong Kong How to Obtain Business Licenses? A Detailed Guide Revealed!

With the continuous development of the Guangdong-Hong Kong-Macao Greater Bay Area, more and more mainland entrepreneurs are setting their sights on Hong Kong-the international financial hub. Whether opening a retail store, launching a food service, or registering a tech company, one fundamental yet critical question must be addressed how to legally and compliantly obtain business registration and various operating licenses in Hong Kong.

For investors new to the Hong Kong market, the licensing process may seem complex and unfamiliar. This article outlines a clear and practical step-by-step guide for entrepreneurs planning to expand into Hong Kong, incorporating the latest official policy updates and relevant news.

1. Determine License Type and Clarify Business Nature

Before officially applying, it is essential to clarify your business nature and the type of license required. Hong Kong's commercial activities are regulated by multiple departments, and each industry requires a specific license or permit.

Business Registration Certificate BRC - issued by the Inland Revenue Department IRD, this is a mandatory basic document for all businesses operating in Hong Kong.

Food Business License - required for food service operators, issued by the Food and Environmental Hygiene Department FEHD.

Estate Agency Licence - managed by the Estate Agents Authority EAA.

Financial Services Licenses, such as those for securities, insurance, or banking - must be obtained from the Securities and Futures Commission SFC, the Insurance Authority IA, or the Hong Kong Monetary Authority HKMA.

In July 2025, the Hong Kong Special Administrative Region released a White Paper on optimizing the business environment, proposing to streamline approval procedures for certain industries and promote digital submission of documents to improve efficiency. This has created a more convenient environment for aspiring entrepreneurs.

2. Register Company and Obtain Business License Simultaneously

The first step in operating in Hong Kong is usually to register a company. The registration process is mainly handled through the Companies Registry CR, often with the assistance of a local lawyer or professional secretary firm.

1. Choose a Company Type The most common structure is a Private Limited Company, which offers limited liability protection and is suitable for most small to medium-sized enterprises.

2. Submit Registration Documents Including the company’s articles of association, director and shareholder information, and registered office address.

3. Receive Certificate of Incorporation Upon completion of registration, the company will receive its incorporation certificate.

4. Apply for Business Registration Certificate Within one month after company registration, apply to the Inland Revenue Department for the BRC.

Under the latest regulations in 2025, the annual business registration fee has been adjusted to HKD 2,500, with online renewal available. Notably, if a business engages solely in import/export or other non-local operations, it may apply for offshore exemption to avoid paying profits tax. However, sufficient evidence of offshore transactions must be provided.

3. Additional Licenses Required for Specific Industries

After obtaining the basic business registration, many industries must apply for additional licenses from relevant regulatory bodies. Below are some common industry-specific requirements

1. Catering Industry Opening a restaurant or food stall requires applying for a food business license from the Food and Environmental Hygiene Department FEHD. In June 2025, FEHD introduced new measures allowing online submission of documents and scheduling of on-site inspections, significantly shortening approval time. Staff must complete food safety training and obtain a certificate.

2. Education and Training Institutions Institutions offering formal courses, especially tutoring or interest classes for children and adolescents, must register with the Education Bureau and comply with fire safety and building regulations.

3. Beauty and Fitness Industry Beauty salons, massage parlors, and fitness centers must apply for relevant licenses from municipal departments and ensure compliance with hygiene and safety standards.

4. Tourism and Hospitality Industry Guesthouses, short-term rentals, and travel agencies must apply for permits from the Travel Industry Regulatory Authority TIRA or the Guesthouse Licensing Office. In mid-2025, stricter regulations were imposed on short-term rentals due to the rebound in visitor numbers, with higher penalties for illegal operators.

4. Employment and Tax Obligations

Once a business license is obtained, the company enters the normal operation phase. Employers should pay attention to the following

Mandatory Provident Fund MPF Companies with employees must legally register MPF accounts and make timely contributions.

Tax Filing Obligations From April to August each year is the tax filing period. Companies must submit profits tax returns and relevant financial statements.

Employment Contracts It is recommended to establish written employment contracts that clearly define wages, working hours, and leave policies to protect the rights of both parties.

In September 2025, the Labour Department reminded employers that the minimum wage had been raised to HKD 40 per hour. Violating employers may face fines of up to HKD 350,000 and imprisonment for up to three years.

5. Seek Professional Assistance to Minimize Risks

While Hong Kong encourages entrepreneurship and continues to improve its business environment, mainland investors may still face language barriers and legal differences. It is advisable to seek support through the following channels

Hire a Local Accountant or Legal Advisor To assist with tax filing, contract review, and other tasks.

Engage a Secretary Company To handle company registration, annual audits, and license renewals.

Utilize Support Platforms Such as the SME Support and Consultation Centre or the Investment Promotion Office, which offer free advisory services.

Conclusion

As one of the world's most competitive business cities, Hong Kong boasts a robust legal system and efficient administration. Although the licensing process involves multiple steps and departments, it is not overly complicated if you plan ahead, prepare all required documents, and seek appropriate professional help.

We hope this article provides practical guidance for those considering expansion into Hong Kong and helps you successfully embark on a new chapter of your business journey.