網店商業登記-開網店商業登記- ig shop商業登記

【Complete Process of Business Registration for Online Shops】FAQs: IG Shop Requires BR?

網店商業登記-開網店商業登記- ig shop商業登記

The E-commerce market has flourished during the pandemic, with more and more people opting to start online shops or IG shops as a business venture. However, when it comes to opening an online shop in Hong Kong, you may have doubts about whether you need to apply for a business registration (BR). For example, there is a common rumour that as long as the monthly turnover of the online shop is below HK$10,000, there is no need to apply for a business registration. This article aims to address the relevant questions regarding the business registration of online shops and provide a detailed explanation of the application process, methods, fees, and required documents for BR registration.

What is a Business Registration Certificate (BR)?

A Business Registration Certificate is a document issued by the Business Registration Office, a subsidiary of the Inland Revenue Department. It serves as a proof of registration, enabling business operators to fulfil their legal obligations and allowing the public to easily access business registration information. According to the Business Registration Ordinance, individuals conducting business in Hong Kong are required to apply for a business registration within one month from the commencement of business and display the valid Business Registration Certificate at the place of business. It there are any changes to the registered information, the operator must notify the Inland Revenue Department within one month.

Latest Fees for One-Year and Three-Year BR Certificate in 2023

  • One-Year Certificate: Registration Fee: HK$2,000; Levy: HK$150; Total: $2150
  • Three-Year Certificate: Registration Fee: HK$5,200; Levy: HK$450; Total: $5650

Application Process for Online Shop Business Registration Certificate

網店商業登記-開網店商業登記- ig shop商業登記

The application process for obtaining an online shop business registration certificate involves the following three steps: 

  1. Fill out the designated application form
  2. Pay the business registration fee and levy
  3. Submit the required identification documents

There are two methods available for submitting the business registration application: “Paper Application” or “Online Application via eTAX Account”.

Method 1: Paper Application

Applicants can obtain the business registration application form through the following three methods

  1. Visit the Business Registration Office on the 4th floor of the Revenue Tower in Wan Chai in person.
  2. Submit the form by IRBR194 email to the Inland Revenue Department ([email protected]) or make a written request for the application form. In the letter, include your name, mailing address, the desired form number, and quantity. Once completed, you can send the letter by mail or fax (2824-1482) to the Business Registration Office, and they will mail the application form to you.
  3. Use the “e-ME” service available on “iAM Smart” to fill out the form electronically. After completion, the business registration application form will be sent to you by mail.

For the submission of the application through the paper form, you can choose one of the following methods:

  • Submit the application in person at the Business Registration Office on the 4th floor of the Revenue Tower in Wan Chai.
  • Mail the application to P.O. Box 29015, Gloucester Road Poster Office, Hong Kong

Method 2: Online Application (Applicable for Sole Proprietorship, Partnership (excluding Limited Partnership Fund), and Branch Registration)

  • Opening an “eTAX” account can be completed in approximately 15 minutes
  • Following the guidelines provided by the Inland Revenue Department

Documents required when applying for a BR certificate

網店商業登記-開網店商業登記- ig shop商業登記

When applying for a business registration certificate, different types of businesses require different supporting documents. Here are the details:

Sole Proprietorship:

  1. Copy of the applicant’s Hong Kong identity card
  2. Application Form 1(a)
  3. Proof of payment for the business registration fee and levy (if applying by mail, payment should be made by crossed cheque in Hong Kong dollars payable to “The Government of the Hong Kong Special Administrative Region”. Cash should not be sent by mail.)

Partnership (excluding limited partnership funds):

  1. Copies of the Hong Kong identity cards of all partners
  2. Application Form 1(c)
  3. Proof of payment for the business registration fee and levy (if applying by mail, payment should be made by crossed cheque in Hong Kong dollars payable to “The Government of the Hong Kong Special Administrative Region”. Cash should not be sent by mail.)

For other types of businesses (corporations, limited partnership funds, other non-incorporated bodies, branch businesses), please refer to the government website: https://www.ird.gov.hk/chi/tax/bre_abr.htm

5 FAQs for Business Registration

網店商業登記-開網店商業登記- ig shop商業登記

FAQ 1: Do I need to apply for a business registration certificate for an IG Shop? Do online shops require business registration?

Yes, an IG Shop falls under the category of conducting online business, and the business registration certificate serves as a legal document demonstrating the legitimacy of the business operation, including online shop businesses.

FAQ 2: Do I need to apply for a business registration certificate if my monthly turnover is below HK$10,000?

Yes, regardless of the monthly turnover amount, according to the Business Registration Ordinance, individuals conducting business in Hong Kong are required to apply for a business registration certificate. 

FAQ 3: What are the conditions for applying for an exemption from paying the business registration fee?

If you meet the following conditions, you can fill out Form 3 from the Business Registration Office to apply for an exemption from paying the business registration fee and levy:

  1. For businesses providing services to earn profits: HK$10,000
  2. For other businesses: HK$30,000

Note: While you can apply for a fee exemption, you still need to apply for a business registration certificate.

FAQ4: When should I start applying for a business registration certificate?

According to the Business Registration Ordinance, individuals conducting business in Hong Kong are required to apply for a business registration certificate within one month from the commencement of their business operations.

FAQ 5: What are the consequences of not submitting the application on time?

According to the provisions of the Business Registration Ordinance in Hong Kong, any individual or organisation conducting business in Hong Kong must apply for a business registration within one month from the commencement of their business operations and display a valid business registration certificate at the business premises. Individuals who violate these regulations may face a fine of HK$5,000 and imprisonment for up to one year. Additionally, if the commencement of business exceeds 12 months, they may be required to pay all the levies for the current year and previous years.

Summary

Shop strongly recommends that online shop owners apply for a business registration (BR) for their online shops before starting operations. This ensures that they have the legal right and protection to operate their business. In addition to complying with government regulations, having a business registration helps establish business credibility. Many companies prefer to collaborate with businesses that have a valid business registration, such s when applying for online credit card payment services or seeking suppliers. Not having a business registration for your online shop can lead to various difficulties and even hinder business growth, causing potential risks that outweigh the initial benefits.

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Published On: December 12th, 2023Categories: Featured News, For Beginners, Marketing Tutorial, Tutorial