Hong Kong Jet Brokerage License Needs

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Hong Kong Jet Brokerage Licensing

Hong Kong Jet Brokerage License Needs

While the term "jet brokerage license" isn't a specific, single license in Hong Kong, the activities involved in a jet brokerage business are subject to several regulations and require compliance with various authorities. The specific requirements depend on the nature of your business, particularly whether you are acting as an agent for charter flights or selling aircraft.

Here's a breakdown of the key considerations and potential requirements for a jet brokerage business in Hong Kong:

1. Business Registration

Like any business in Hong Kong, you must first register your company with the Companies Registry and obtain a Business Registration Certificate from the Inland Revenue Department.

2. Travel Industry and Air Services Regulations

Travel Industry Ordinance: If your business involves arranging private jet charters for clients, this service falls under the regulation of the Travel Industry Ordinance (Cap. 634). This means you must be a licensed travel agent under the Travel Industry Authority (TIA). This is crucial for protecting consumers, ensuring transparency, and enforcing accountability in the sale of air travel services.
Air Transport (Licensing of Air Services) Regulations: The Air Transport Licensing Authority (ATLA) grants licenses to companies that carry passengers, cargo, or mail by air for hire or reward on scheduled journeys. For non-scheduled, on-demand services like private jet charters, a permit from the Director-General of the Civil Aviation Department (CAD) is required.

3. Civil Aviation Department (CAD) Requirements

The CAD is the primary regulator for aviation in Hong Kong and has a number of requirements for aviation-related businesses and flights.

Air Operator's Certificate (AOC): A key distinction to understand is that your company, as a broker, likely won't need an AOC. An AOC is a license issued to an operator that allows them to use aircraft for commercial purposes. You must ensure that any aircraft you charter for clients is operated by a company that holds a valid AOC.
Landing Permits: For private and charter operations landing in Hong Kong, a landing permit, airport slots, and Prior Permission Required (PPR) are all necessary. The CAD requires a minimum lead time for these permits and is very specific about documentation, particularly for insurance.

4. Other Potential Considerations

Securities and Futures Commission (SFC): The SFC regulates brokerage activities related to financial instruments. If your business model involves investment or financial services tied to aircraft ownership, you may need to apply to the SFC for an appropriate license.
Office and Personnel: To obtain the necessary licenses, you may need to demonstrate that you have an established office in Hong Kong and employ personnel with appropriate qualifications and experience.
Capital and Assets: For some brokerage licenses, such as those regulated by the SFC, there are requirements regarding the company's capital and assets.

It's important to consult with legal and corporate services professionals who specialize in aviation and business registration in Hong Kong to ensure full compliance with all relevant regulations.

Fees

When establishing a jet brokerage in Hong Kong, the fees can be broken down into several categories: government fees for business registration and licensing, and professional service fees for the assistance you'll need.

1. Government Fees

These are the mandatory fees you'll pay directly to government bodies.

Companies Registry: To incorporate a company limited by shares, the fee is approximately HK$1,720 for hard copy submission or HK$1,545 for electronic submission.
Business Registration Certificate (BRC): A BRC is mandatory. The cost is approximately HK$2,200 for a one-year certificate or HK$5,870 for a three-year certificate.
Travel Industry Authority (TIA): If you are arranging charter flights, you will need a travel agent's license.
- Application Fee: HK$630
- License Fee: HK$485 per month.
Civil Aviation Department (CAD): For the aircraft you broker, there are fees associated with landing and other services.
- Landing and Parking Fees: These can vary significantly based on the aircraft's size and weight. A basic charge per flight can range from HK$10,000 to HK$30,000, with additional costs for apron parking.
- Air Navigation Bill: The Hong Kong Civil Aviation Department (CAD) will send an air navigation bill to the aircraft operator directly. The cost is calculated based on the aircraft's weight and flight duration.

2. Professional Service Fees

These fees are for the expert assistance that is highly recommended for a smooth setup.

Company Formation and Secretarial Services: Bestar offers packages that include company registration, a registered office address, and a company secretary (which is a legal requirement in Hong Kong). These packages can range from a few thousand Hong Kong dollars to over HK$10,000 for the first year, depending on the services included.
Professional Fees: Bestar will be invaluable for drafting and reviewing contracts. Our fees are billed on an hourly basis, which can vary widely depending on the complexity of the work.
Accounting and Tax Services: Bestar will help with financial planning, bookkeeping, and tax compliance. Annual accounting and auditing fees for a small business can be several thousand dollars, with more complex businesses incurring higher costs.
Bank Account Opening: While not a direct fee to the bank, Bestar charges for assisting with the bank account opening process, which can be challenging for a new company.

It is important to budget for both the government fees and the professional service fees to get a clear picture of the total cost of setting up your jet brokerage business in Hong Kong.

How Bestar can Help

Setting up a jet brokerage business in Hong Kong involves navigating a complex web of legal and regulatory requirements. Professional assistance is not just helpful—it's often essential for a smooth and compliant process. Here's a breakdown of what Bestar can do for you:

1. Corporate Services and Business Consultancy

Bestar specializes in company formation and can be your first point of contact. We provide a comprehensive suite of services to get your business up and running.

Company Registration: We will handle the entire process of registering your company with the Companies Registry and obtaining a Business Registration Certificate from the Inland Revenue Department.
Business Structure Advice: We can advise you on the most suitable business structure (e.g., limited company, branch office) for your specific needs, considering factors like liability and long-term goals.
Ongoing Compliance: Beyond the initial setup, we offer services like acting as your company secretary, providing a registered office address, and ensuring you meet all ongoing statutory filing deadlines.
Bank Account Opening: We can assist with opening a corporate bank account, a process that can be challenging for non-residents and new businesses.

2. Aviation Law

Aviation law is a highly specialized field, and Bestar with expertise in this area is crucial for a jet brokerage.

Licensing and Permits: We can provide expert advice on the specific licenses and permits required for your business activities, such as a travel agent's license from the Travel Industry Authority (TIA) and permits from the Civil Aviation Department (CAD).
Contract Drafting and Review: We will draft and review all your key legal documents, including brokerage agreements, charter agreements with operators, and client contracts, to ensure they are legally sound and protect your interests.
Regulatory Compliance: We can help you navigate the complex regulations set by the CAD, TIA, and other authorities, ensuring that your business operates within the legal framework of Hong Kong.
Aircraft Transactions: If your business involves the sale or purchase of aircraft, Bestar is indispensable for handling the legal aspects of ownership, finance, and cross-border transactions.

3. Accountancy and Tax Advisory

Bestar is vital for managing the financial aspects of your business and ensuring tax compliance.

Financial Planning: We can help you with financial forecasting, budgeting, and setting up an efficient accounting system.
Tax Compliance: We will ensure you comply with all Hong Kong tax laws, including filing annual tax returns and managing business registration fees.
Auditing and Reporting: Our partnered firm can prepare and audit your financial statements, which is a statutory requirement for all limited companies in Hong Kong.
International Tax Advice: For cross-border transactions, we can provide advice on international tax implications and ensure you are not subject to double taxation.

By engaging Bestar, you can save time, avoid potential legal and financial pitfalls, and focus on building your jet brokerage business with confidence and a solid foundation.

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