Of all the recurring compliance dates a Hong Kong company has to remember, the Business Registration Certificate (BR) renewal is the easiest one to get wrong. The reminder from the Inland Revenue Department arrives once a year, the deadline is short, the certificate looks ordinary, and the penalties for missing it are out of proportion to the apparent triviality of the document.
This guide covers what every Hong Kong business needs to know about BR renewal in 2026 — the fee structure, the difference between the 1-year and 3-year certificate, how to renew electronically, what happens if you miss the deadline, and the edge cases (branch BR, multi-business operators, business cessation) that catch people out.
What the BR is — and who needs to renew
The Business Registration Certificate is issued by the Inland Revenue Department under the Business Registration Ordinance (Cap. 310). It is not the same as the Certificate of Incorporation issued by the Companies Registry — that is your “birth certificate” as a legal entity, and it never expires. The BR is your annual licence to carry on business in Hong Kong, and it has to be displayed at your principal place of business.
- Hong Kong limited companies. A BR is issued automatically as part of the one-stop incorporation process. It is then renewed every year (or every three years) for as long as the company is active.
- Sole proprietorships and partnerships. Apply for BR within one month of starting the business, then renew on the same cycle.
- Foreign companies registered as a non-Hong Kong company — same renewal obligation.
- Branches of an existing business. Each branch needs its own Branch BR — see the dedicated section below.
The fact that a company has stopped trading does not automatically end the BR obligation. Until the company is formally deregistered (or the sole proprietor formally notifies cessation of business), the renewal cycle keeps running and unpaid fees keep accruing.
1-year vs 3-year certificate — which to choose
The BR comes in two flavours. The 1-year certificate is the default. The 3-year certificate is opted-in by ticking a box on the renewal form (or selecting the 3-year option in the e-Demand Note system).
- 1-year certificate. Pay annually. Lower per-renewal cash outlay. The fee is reset each year by the Budget — useful if rates are likely to drop or if a fee waiver is announced.
- 3-year certificate. Pay three years’ fee in one go. Locks in the current fee level for three years (so if fees rise, you save money — and if they fall, you don’t benefit). One less reminder to chase, but the upfront cash is materially larger.
Most stable, ongoing businesses opt for the 3-year certificate as a small cash-flow trade for one less compliance date. New companies in their first year often pick the 1-year certificate because they want to see whether the business will continue before locking in three years of fees.
The 2026 fee structure
BR fees in Hong Kong are set by the annual Budget. They have moved several times in recent years — including a temporary waiver in 2023–24 and a return to the standard rate the following year. Always check the current published fee on the Inland Revenue Department website before paying, because what you read in any guide (this one included) can be out of date by the next Budget.
Recent levels for context (subject to Budget announcements):
- 1-year main certificate: roughly HK$2,000 BR fee + HK$150 levy for the Protection of Wages on Insolvency Fund (PWIF) = around HK$2,150 total.
- 3-year main certificate: roughly HK$5,200 BR fee + HK$450 levy = around HK$5,650 total.
- 1-year branch certificate: roughly HK$73 BR fee + HK$150 levy = around HK$223 total.
- 3-year branch certificate: roughly HK$189 BR fee + HK$450 levy = around HK$639 total.
The PWIF levy is collected with the BR fee but goes to the wages-insolvency fund, not to general revenue. It cannot be waived even when the BR fee itself is waived in a particular year, so the levy line on the demand note will always be there.
How to renew — the mechanics
The Inland Revenue Department issues a Demand Note for renewal about one month before the certificate expires. The note shows the fee, the levy, the due date and the certificate number.
- Electronic renewal via eTAX. Log in to eTAX, go to “Pay BR Fees”, review the demand note, and pay by credit card, FPS, PPS or bank online. The new certificate is issued and downloadable as a PDF — typically within a couple of working days.
- Pay-by-mail. Post the demand note (or the payment slip) with a cheque to the IRD. Allow 10–14 working days for the new certificate to arrive by post. Less reliable around Chinese New Year and Christmas.
- In-person at IRD or the Post Office. Take the demand note to the IRD counter at Revenue Tower, or to a post office for over-the-counter payment. Receipt is issued on the spot; the certificate follows by post.
- FPS via mobile. Many banks now support FPS payment to IRD’s BR collection account. Quote the bill reference number on the demand note.
Whichever method you use, keep the new certificate on file (digital and physical) and replace the displayed copy at your principal place of business. The displayed certificate must be the current one — an expired BR on the wall is itself an offence.
What happens if you miss the deadline
The renewal fee is due by the day before the new period begins. If it isn’t paid, the certificate has technically lapsed — and the consequences scale with how long it stays unpaid.
- Late penalty surcharge. The IRD adds a fixed surcharge of HK$300 (subject to revision) to the demand note for late payment. This is on top of the original fee and levy, not in place of them.
- Operating without a valid BR is an offence. Under section 15 of Cap. 310, carrying on business without a valid BR is punishable by a fine of up to HK$5,000 and one year’s imprisonment. Prosecution is rare for a one-off slip but is real for repeat or wilful non-compliance.
- Knock-on effects. Banks may decline to process certain transactions if your displayed BR has lapsed. Landlords with sub-leasing clauses may treat lapsed BR as a breach. Counterparties doing due diligence (audit, tender, financing) flag a lapsed BR immediately.
- Compounding fees. If you ignore demand notes for years (which happens with dormant companies that aren’t formally deregistered), the unpaid renewal fees, levies and surcharges compound year on year. The cleanup bill at deregistration time is much larger than the cost of paying on time.
The single best protection against this is a calendar reminder set at expiry minus 45 days, and a backup reminder set at expiry minus 14 days. If the IRD demand note is lost in the post, the calendar still fires.
Branch business registration
If you operate from more than one address — a head office plus a shop, two storefronts, an office plus a warehouse used as a sales counter — each separate place of business needs its own Branch BR. The original certificate is the “main” BR; subsequent locations are “branch” certificates.
- When you open a new location. Apply for the branch BR within one month of starting business at the new address. Form IRBR193 is the application.
- When you close a location. Notify IRD in writing within one month so renewal stops accruing for that branch.
- Pure storage with no customer-facing activity — typically a back-office warehouse, server room, or off-site archive — does not usually need its own branch BR. If in doubt, ask IRD or your accountant.
Business cessation — closing the loop
For a sole proprietor or partnership that is winding down, you must notify the IRD of business cessation within one month using Form IRC3113. After this, the BR cycle stops and you do not have to keep renewing.
For a Hong Kong limited company, BR renewal continues until the company is deregistered with the Companies Registry. Stopping payment without deregistering is not a closure — it is just a missed renewal, which keeps generating demand notes and surcharges. Deregistration itself involves obtaining a “Notice of No Objection” from the IRD, which the IRD will not issue while there are unpaid taxes or BR fees.
Common mistakes we see
- Confusing the BR with the Certificate of Incorporation. The CI never expires. The BR does. New founders sometimes assume one stands in for the other.
- Letting the displayed certificate go out of date while paying the renewal — i.e. paying on time, but not bothering to swap the wall copy. The displayed certificate is what an IRD inspector or a counterparty will check first.
- Not updating the registered business address when the office moves. The BR record has to be updated within one month using Form IRBR193 or via eTAX. Otherwise the next demand note is sent to a stale address and gets missed.
- Treating dormant companies as “no BR needed”. Dormancy under Cap. 622 is a Companies Registry concept that affects audit and reporting requirements; it does not exempt the company from BR. The renewal cycle keeps running.
- Mixing up the demand note number on FPS payments, which causes payment to arrive at IRD without a clear allocation. Always quote the exact bill reference.
How this fits into the rest of your compliance calendar
BR renewal is one of four annual compliance dates every Hong Kong company has to keep on the calendar — alongside the Annual Return (NAR1) at the Companies Registry, the Profits Tax Return cycle with IRD, and (for most companies) the audited financial statements signed off before the AR is filed. If you are still building your compliance calendar, our setup-checklist guide, company formation walkthrough and company secretary services guide together cover the full first-year and ongoing picture.
Talk to us before the next deadline
Lin Fung Accounting helps Hong Kong companies stay on top of BR renewal, NAR1 filing, Profits Tax Returns and audit. If you have inherited a company with unpaid renewals, or you are not sure whether you should be on a 1-year or 3-year cycle, we can review the file and give you a clear path back to current.
Have a look at Giga Accounting bookkeeping services and auditing services from Giga Accounting by 凌峰會計, or visit the homepage to start a conversation.
