Business registration levy and fee waivers for Hong Kong companies

Hong Kong Business Registration Levy and Fee Waivers Explained

Hong Kong’s business registration levy waivers reduce the cost of maintaining a Business Registration Certificate. The waiver applies only to the levy component, never the base fee. The levy is a statutory charge imposed under the Business Registration Ordinance (Cap. 310) and collected by the Inland Revenue Department alongside the base registration fee. When a waiver is in effect, you pay the base fee. You do not pay the levy.

Current Waiver Status

The government introduces levy waivers as part of annual budget measures. For the most recent position, check the IRD’s website or consult a licensed service provider. The waiver covers one year of the levy for both new registrations and renewals. It applies to all business registration certificates, sole proprietorships, partnerships, and private companies limited by shares.

The base fee is set by the Business Registration Ordinance and is not subject to waiver. The levy is a separate charge funding specific government programmes. Only the levy may be waived.

Hong Kong Business Registration Fee Waiver 2026

As of August 2026, the most recent confirmed waiver was announced in the 2025-26 Budget. The waiver covered the levy for business registration certificates renewed or issued between 1 April 2025 and 31 March 2026. For the 2026-27 financial year, verify the current position with the IRD or your corporate service provider.

If a waiver is in effect for 2026, the levy component is not payable. The base fee remains payable. For a 1-year certificate, the base fee is HK$2,150. For a 3-year certificate, the base fee is HK$5,650. The levy, when not waived, adds HK$250 per year for a 1-year certificate and HK$750 for a 3-year certificate.

Hong Kong BRC Renewal Fee Waiver

The renewal of a Business Registration Certificate is due on the expiry date stated on the certificate. The IRD issues a renewal notice before expiry. If a levy waiver is in force at the time of renewal, the levy component is not included in the renewal fee. Pay the prescribed fee, base fee only, if the waiver applies, and the IRD issues a new certificate. The BRC validity is either 1 year or 3 years, depending on the option you selected at registration or renewal.

Hong Kong Business Registration Levy Amount

The levy amount is fixed by law at HK$250 per year. For a 1-year certificate, the total levy is HK$250. For a 3-year certificate, the total levy is HK$750. When a waiver is in effect, you do not pay this amount.

The levy is a separate charge from the base fee and is collected by the IRD on behalf of the government. It funds specific purposes, such as the Protection of Wages on Insolvency Fund.

How the Waiver Affects Form IRBR1

Form IRBR1 is the notice to the Business Registration Office that you file when incorporating a company. It is submitted together with Form NNC1 (for a company limited by shares) or Form NNC1G (for other entities). The form includes a declaration of the business registration option you choose: 1-year or 3-year certificate.

If a levy waiver is in effect at the time of incorporation, the fee you pay with Form IRBR1 is the base fee only. The levy is not collected. The IRD issues the Business Registration Certificate reflecting the option you selected.

Levy Waiver and the Companies Registry

The waiver of the business registration levy is administered by the Inland Revenue Department, not the Companies Registry. The Companies Registry handles incorporation and issues the Certificate of Incorporation. The Business Registration Certificate is issued separately by the IRD.

When you incorporate a private company limited by shares, you file Form NNC1 with the Companies Registry and Form IRBR1 with the IRD. The Companies Registry forwards the IRBR1 to the IRD. The levy waiver affects only the IRD’s fee collection. It does not affect the Companies Registry’s incorporation fee.

Exemptions From Business Registration

Some entities are exempt from business registration altogether. These include charitable organisations, certain statutory bodies, and businesses with very low turnover. Exemption is not the same as a fee waiver. An exempt entity does not need a Business Registration Certificate and pays no fee or levy. If you believe your business qualifies for exemption, apply to the IRD using the relevant form. The IRD will determine whether the exemption applies.

Late Filing Penalty and the Waiver

A late filing penalty applies if you fail to renew your Business Registration Certificate on time. The penalty is separate from the base fee and the levy. A levy waiver does not affect the penalty. You must pay the penalty in addition to the base fee, and the levy if not waived.

The penalty for late renewal of a BRC is HK$300 for each month or part of a month the renewal is overdue, up to a maximum of HK$3,000. This applies to both 1-year and 3-year certificates.

Practical Steps for Business Owners

When you receive your renewal notice from the IRD, check whether a levy waiver is in effect. The notice states the amount payable. If the levy is waived, the notice shows only the base fee.

For new incorporations, your service provider will include the correct fee when filing Form IRBR1. If a waiver is in effect, the fee will be lower than the standard amount.

If you operate a sole proprietorship or partnership, the same rules apply. Your Business Registration Certificate is issued by the IRD, and the levy waiver applies to your registration and renewal in the same way as for a private company limited by shares.

Where to Verify the Current Position

The IRD publishes updates on its website when a levy waiver is announced. You can also check the annual Budget speech, which includes measures affecting business registration fees. For the most accurate and current information, consult a licensed corporate service provider or the IRD directly.