After considering the stable financial position of the protection fund and other relevant factors, Hong Kong Government has published notice on Gazette for an order of reducing the business registration levy rate on 10 June 2022. Starting on 17 June 2022, the Levy rate of the Protection of Wages on Insolvency Fund Board (Fund Board) to be reduced from HK$250 per annum to $150 per annum.

The new levy rate applies to the following situation:

1. Incorporation application of Hong Kong limited company submitted on or after 17 June 2022;
2. New application or renewal of Business Registration Certificate which commencement date is on or after 17 June 2022.

For the period of 17 June 2022 to 31 March 2023, the total Business Registration fee of new application and renewal will be reduced from HK$2,250 to HK$150 which include the order of a reduction of business registration levy rate from HK$250 per annum to $150 per annum and the order of 2022/23 Business Registration fee waiver for the amount of HK$2,000. After 31 March 2023, unless there is a new order of waiver, the total Business Registration fee of new application and renewal will be HK$2,150.

There are two types of business registration certificate, namely 1-year certificate and 3-year certificate. The amount payable under a certificate depends on the commencement date of the registration certificate. For local companies falling within the one-stop company incorporation service, the amount payable for the first registration certificate depends on the date of making the related incorporation submission to the Companies Registry and the commencement date of the registration certificate is the date of incorporation. For renewal of certificates, the amount payable is determined by reference to the commencement date of the relevant renewal certificate. For a new business other than a local company, the commencement date of its first registration certificate is its date of commencement of business, not the date of application for business or branch registration.

The fee for the business registration certificate of a Hong Kong company is divided into two parts: the business registration fee and the levy. This order will reduce the levy only, the fee for the business registration certificate for companies and branches from 17 June 2022 shall

Kaizen suggests you consult the professional advice of tax advisors before taking actions.
Should you have any questions in relation to the proposals, please feel free to contact our CTAs in Hong Kong.

颜汉彬 Benjamin HP Yen
Tax Partner
T: +852 2270 9768
E：benjamin.yen@kaizencpa.com

麥慧妍 Cathy Mak
Manager of Registration & Compliance Department
T: +852 2270 9757
E: cathy.mak@kaizencpa.com

For reference:

1. 【Hong Kong Company Incorporation Standard Package】
2. 【The Business Registration Ordinance (Amendment of Schedule 2) Order 2022】