Licensing License

Licensing License | Bestar

Hong Kong Licensing Guide

Obtaining a license in Hong Kong is a multifaceted process that depends on the specific type of license you need. Hong Kong has various government departments and authorities that handle licensing for different activities, from driving to operating a business.

Here's a breakdown of some of the key licensing areas and the relevant authorities:

1. Business and Food Licenses

Several government departments handle business and trade licenses, and the specific authority depends on the type of business.

• Business Registration Certificate (BRC): This is a fundamental requirement for all businesses operating in Hong Kong. It is handled by the Inland Revenue Department.

  
  

• Food Business Licenses: The Food and Environmental Hygiene Department (FEHD) is responsible for licensing food-related businesses, such as restaurants, bakeries, and food factories. There are different guides and application forms depending on the type of food business.

  
  

• Other Trade Licenses: The Office of the Licensing Authority, under the Home Affairs Department, manages licenses for a range of businesses, including hotels, guesthouses, bedspace apartments, and karaoke establishments.

  
  

• Contact Information:

  
  

  • Food and Environmental Hygiene Department (FEHD): Check their website for specific contact details and guides for different license applications.

  • Office of the Licensing Authority:

    • Address: 10/F, 14 Taikoo Wan Road, Taikoo Shing, Hong Kong

    • Tel: +852 2881 7034

    • Email: hadlaenq@had.gov.hk

      
      

2. Financial Services Licenses

The financial sector is highly regulated, with different authorities overseeing various activities.

• Securities and Futures Commission (SFC): Licenses are required for activities like dealing in securities and futures contracts, advising on securities, and asset management. The SFC has a detailed licensing regime with multiple "Types" of licenses.

  
  

• Insurance Authority (IA): This body is responsible for licensing insurance intermediaries, including individual agents, technical representatives, and insurance agencies/broker companies.

  
  

• Hong Kong Monetary Authority (HKMA): The HKMA regulates licensed banks, restricted license banks, and deposit-taking companies.

  
  

3. Other Permits and Licenses

• Police Licensing Office: The Hong Kong Police Force handles a range of licenses and permits, including those for security personnel, arms, and temporary liquor permits.

  
  

• Education Bureau (EDB): Licenses for educational institutions like kindergartens and vocational centers are issued by the EDB.

  
  

• Labour Department: This department handles licenses for employment agencies.

  
  

When applying for any license, it is crucial to check the specific requirements, as they can vary significantly. Many government departments now offer online services for applications and appointments to streamline the process. You can also find downloadable forms and detailed guides on the relevant government websites.

Fees

Fees for licenses in Hong Kong vary significantly depending on the type of license, the government department involved, and the specific circumstances of your application. Here is a breakdown of some common licensing fees to give you an idea of the costs.

1. Business and Food Licenses

Fees for business-related licenses are handled by various departments and depend on the type of business and the license's validity period.

• Business Registration Certificate (BRC):

  
  

  • A one-year certificate costs HK$2,200.

  • A three-year certificate costs HK$5,870.

  • There is also a levy to the Protection of Wages on Insolvency Fund, which is an additional HK$150 for a one-year certificate and HK$450 for a three-year certificate.

    
    

• Restaurant Licenses: The Food and Environmental Hygiene Department (FEHD) charges fees based on the floor area of the restaurant.

  
  

  • A full license for a General Restaurant not exceeding 100 sq. m. costs HK$2,520 per year.

  • A provisional license for a general restaurant costs half of the full license fee.

  • Fees for other food-related licenses, such as a Light Refreshment Restaurant or a Bakery, are also based on floor area.

2. Financial Services Licenses

The fees for licenses in the financial sector are set by the relevant regulatory bodies, such as the Securities and Futures Commission (SFC) and the Insurance Authority (IA).

• Securities and Futures Commission (SFC) Licenses:

  
  

  • Licensed Corporation: The application fee is HK$4,740 per regulated activity (RA).

  • Licensed Representative: The application fee is HK$1,790 per RA.

  • Responsible Officer: The application fee to become a responsible officer is HK$2,950 per RA.

    
    

• Insurance Authority (IA) Licenses:

  
  

  • Individual Insurance Agent: The application fee for a new three-year license can range from HK$810 to HK$1,900, depending on the line of business (e.g., General, Long-Term, or both).

  • There are also fees for the Insurance Intermediaries Qualifying Examination (IIQE) that all candidates must pass. The fees for these exams vary by paper.

These fees are subject to change, and it is always recommended to check the official websites of the relevant government departments for the most current information.

Professional fees for licenses in Hong Kong vary depending on the specific industry, the type of license, and the issuing government body. These fees often include both an application fee and a recurring annual or multi-year license fee.

Financial Services

The financial sector is highly regulated, and the fees for licenses issued by the Securities and Futures Commission (SFC) reflect this. For a licensed corporation, the application fee is HK$4,740 per regulated activity (RA), with an annual fee of the same amount for RAs other than RA3. A licensed representative pays an application fee of HK$1,790 per RA and an annual fee of the same amount. The Insurance Authority (IA) also charges a range of fees for insurance intermediaries, which vary depending on the line of business (e.g., General or Long-Term). A new three-year license for an individual insurance agent can cost from HK$810 to HK$1,900.

Security and Business Services

The Hong Kong Police Force Licensing Office handles licenses for security and related services. Fees for these licenses are generally lower than those in the financial sector. For example, a Pawnbroker's License costs HK$5,580 for a one-year issue or renewal, while a Massage Establishment License costs HK$12,900 for a new issue and HK$5,030 for a renewal.

Trust and Company Services

The Trust and Company Service Providers (TCSP) Registry charges a license application fee of HK$3,440. There's also an additional fee of HK$975 for each person who must undergo a fit-and-proper test.

Immigration-Related Professional Visas

The Immigration Department has revised its fee structure for certain talent and capital investment schemes. An application fee of HK$600 is now charged for each application. The visa fee itself varies based on the length of stay: HK$600 for a stay of 180 days or less and HK$1,300 for a stay of more than 180 days.

Fees for Professional Licensing Services

The charges are highly variable and depend on the type of license, the complexity of the application, and the services included. Bestar proposes fees through a combination of flat rates, hourly charges, and project-based fees.

Here is a proposed breakdown of professional fees for common licensing services in Hong Kong.

1. Company Incorporation and Business Registration

This is a fundamental service for any new business in Hong Kong. Bestar offers all-inclusive packages to make the process transparent and simple for clients.

• Service: New company incorporation and Business Registration Certificate application.

  
  

• Fee Range: HK$4,000 - HK$10,000+.

  
  

• What it includes:

  
  

  • Government fees: Covers the mandatory fees for the Companies Registry and the Inland Revenue Department (Business Registration Fee).

  • Professional services: Preparation and filing of all required documents (e.g., Articles of Association, Form NNC1), a company kit with essential documents, and acting as the company secretary for the first year.

For services such as providing a registered office address, assisting with bank account opening, and other corporate compliance support, Bestar in Hong Kong offers these as separate, recurring fees. Here's a breakdown of the fees you can expect.

1. Registered Office Address

A registered office address is a legal requirement for all companies in Hong Kong. It's the official address where government and legal documents are sent. Bestar offers this as a standalone service.

• Fee Range: HK$800 - HK$2,000 per year.

  
  

• What it includes:

  
  

  • Using the firm's address as your company's official registered office.

  • Mail and parcel handling, including receiving and notifying you of government correspondence (e.g., from the Inland Revenue Department and Companies Registry).

  • Mail forwarding services (additional postage fees applies).

It is standard practice for professional firms to charge additional postage fees for mail forwarding services. While the base fee for a registered office or virtual office covers receiving and notifying you of mail, the cost of physically forwarding the mail to you is an extra charge.

Here's a breakdown of how these charges are structured:

1. Handling Fee

In addition to the postage cost, Bestar charges a small handling fee for each piece of mail or package we forward. This fee covers the administrative work of preparing the mail for shipment, such as packing, weighing, and creating a shipping label.

• Fee: HK$10 - HK$50 per item. 

2. Postage or Courier Cost

This is the main component of the additional charge and is a direct pass-through cost from the postal service or courier company. The fee is determined by several factors:

• Destination: International postage is significantly more expensive than local Hong Kong postage. The cost will depend on the destination country and postal zone.

  
  

• Weight and Dimensions: Heavier or larger packages will incur higher postage costs. Bestar has a tiered pricing system based on weight bands.

  
  

• Speed: You can often choose between standard mail, registered mail, or express courier services (e.g., DHL, FedEx). Express services are fast but come with a much higher price tag.

  
  

• Tracking: If you require a tracking number, there will be an additional fee for registered or courier services.

3. Value-Added Services

Bestar offers additional services for mail, which also incur separate fees:

• Mail Scanning: Instead of physical forwarding, many clients, especially those overseas, opt to have their mail opened and scanned. This saves on postage costs.

  
  

  • Fee: HK$5 - HK$20 per scan, with an additional charge per page after a certain number of pages.

    
    

• Mail Shredding: If you receive junk mail or documents you don't need, firms can shred them for you. This is often included in the service or charged at a small fee.

Example of a Typical Pricing Structure

Bestar might offer a service plan like this:

• Annual Fee for Registered Office: HK$1,500 (includes mail notification and storage for a limited period).

  
  

• Mail Forwarding:

  
  

  • Handling Fee: HK$15 per envelope forwarded.

  • Postage: Charged at cost, based on the method you choose (e.g., standard airmail, courier).

    
    

• Optional Services:

  
  

  • Mail Scanning: HK$20 per scan (up to 10 pages).

  • Parcel Handling: HK$50 handling fee per parcel plus postage.

By understanding this pricing model, you can make an informed decision and select a plan that best fits your needs, whether you prioritize cost savings or the speed and security of a courier service.

2. Assistance with Bank Account Opening

Opening a corporate bank account in Hong Kong, especially for non-residents, can be a challenging process with strict due diligence requirements. Bestar provides assistance to navigate this.

• Fee: HK$2,000 - HK$8,000+

  
  

• What it includes:

  
  

  • Document preparation: Assisting in preparing the necessary corporate and personal documents for the bank's KYC (Know Your Customer) and due diligence checks.

  • Bank liaison: Acting as a liaison between the company and the bank to submit the application and address any queries.

  • Arranging appointments: Scheduling and sometimes attending bank appointments on your behalf.

    
    

3. General Corporate Compliance Support

This category covers a range of essential services to ensure a company remains in good legal standing after incorporation. These are often offered as part of an annual retainer or a company secretarial package.

• Annual Company Secretarial Services: A company secretary is legally required in Hong Kong. They are responsible for managing the company's legal and compliance duties.

  
  

  • Fee: HK$1,200 − HK$5,000 per year.

  • What it includes:

    • Acting as the company secretary.

    • Maintaining the statutory records (e.g., directors' and shareholders' registers).

    • Filing the annual return with the Companies Registry.

    • Handling changes to the company's particulars (e.g., directors, shareholders, or address).

      
      

• Other Compliance Support:

  
  

  • Filing of Annual Return (NAR1): The government fee is HK$105 if filed on time. Professional firms charge an additional service fee for preparing and filing this document.

  • Significant Controllers Register (SCR): Companies are required to maintain a register of their significant controllers. Bestar charges a one-time fee to set this up and an annual fee for maintenance. Fee: HK$500 - HK$1,000+

  • Preparation of Minutes and Resolutions: Bestar charges an hourly rate or a fixed fee for drafting board resolutions or meeting minutes.

  • Dormant Company Declaration: For companies that are not actively trading, Bestar can assist in filing a dormant company declaration to reduce compliance costs. Fee: HK$1,500 - HK$3,000.

2. Specialized Business and Food Licenses

For licenses handled by departments like the Food and Environmental Hygiene Department (FEHD) or the Office of the Licensing Authority, Besstar charges a project-based fee.

• Service: Application for a general restaurant license, a light refreshment restaurant license, or a liquor license.

  
  

• Fee: HK20,000−HK50,000+

  
  

• What it includes:

  
  

  • Consultation: Expert advice on the legal and regulatory requirements, including premises design and fire safety.

  • Application handling: Preparation of application forms, liaison with government officials, and follow-up on inspections.

  • Document management: Assistance with preparing floor plans, layout plans, and other required technical documents.

  • Additional charges: The fee may increase for complex projects, such as those with liquor licenses or for larger premises, as these require more extensive documentation and inspections.

3. Financial Services Licensing (SFC)

Licensing with the Securities and Futures Commission (SFC) is one of the most complex and expensive processes. Professional fees are significantly higher due to the stringent "fit and proper" person tests, capital requirements, and detailed business plans required.

• Service: Application for a licensed corporation and licensed representatives for regulated activities (e.g., Type 1: Dealing in Securities; Type 9: Asset Management).

  
  

• Fee: HK$80,000 - HK$250,000+ per regulated activity.

  
  

• What it includes:

  
  

  • Comprehensive advisory: Detailed consultation on the licensing criteria, capital requirements, and business plan structure.

  • Document and policy drafting: Drafting of the business plan, compliance manual, and other internal control documents required by the SFC.

  • Liaison with SFC: Handling all correspondence, queries, and meetings with the SFC on behalf of the applicant.

  • Additional fees: The cost will vary depending on the number of responsible officers and licensed representatives, and the complexity of the business model. Bestar also charges for ongoing compliance support on an hourly or retainer basis.

4. Other Professional Licensing

For licenses for professions such as pawnbrokers, money lenders, or trust and company service providers (TCSP), a project-based or fixed fee model is common.

• Service: Application for a Money Lenders License.

  
  

• Fee: HK$40,000 - HK$100,000+

  
  

• What it includes:

  
  

  • Legal and regulatory advice: Guidance on the stringent requirements of the Money Lenders Ordinance.

  • Document preparation: Assistance with all forms, business plans, and due diligence checks.

  • Liaison with authorities: Handling the application and following up with the Police Licensing Office.

It is important for clients to request a detailed fee proposal that breaks down all the costs, including government fees and professional charges, before engaging Bestar. This ensures clarity and helps in managing expectations for the entire licensing process.

How Bestar can Help

Navigating the licensing process in Hong Kong can be complex and time-consuming, as it often involves multiple government departments, specific legal requirements, and detailed documentation. For many businesses and individuals, hiring Bestar can be a highly effective way to streamline the process and ensure a successful outcome.

Here's how Bestar can help with licensing in Hong Kong:

1. Expertise and Guidance

Bestar possesses in-depth knowledge of Hong Kong's regulatory landscape. We can:

• Identify the correct licenses: Many businesses require more than one license to operate legally. Bestar can help you identify all the necessary licenses and permits for your specific business activities.

  
  

• Navigate government departments: We are familiar with the procedures and requirements of various government bodies, such as the Food and Environmental Hygiene Department (FEHD), the Transport Department, the Securities and Futures Commission (SFC), and the Police Licensing Office.

  
  

• Provide strategic advice: Bestar can offer valuable insights on how to meet statutory requirements, optimize premises layouts, and address specific challenges that may arise during the application process.

  
  

2. Streamlined Application Process

The application process for a license can be an administrative burden. Bestar can significantly reduce this by:

• Document preparation: We can assist in preparing all the required documents, ensuring that they are accurate and complete to avoid delays or rejections.

  
  

• Liaison with authorities: We act as a liaison between you and the relevant government departments, handling all communication, follow-ups, and negotiations on your behalf.

  
  

• Meeting deadlines: Bestar can help you stay on top of application deadlines and renewal schedules, ensuring continuous compliance.

3. Compliance and Risk Mitigation

Operating without the correct licenses is illegal and can lead to severe penalties, including fines and business closure. Hiring Bestar helps in:

• Ensuring compliance: Bestar ensures that your business meets all the necessary legal and regulatory requirements from the outset.

  
  

• Minimizing risks: We can identify potential issues and provide solutions to mitigate the risk of non-compliance, such as by advising on building ordinances, fire safety standards, and other legal obligations.

  
  

• Handling complexities: For complex licenses, such as those for financial services or security, Bestar can help with the "fit and proper" person tests and other stringent requirements.

4. Specialised Services

Bestar offers specialized services tailored to specific industries. For instance:

• Restaurant and F&B: Bestar can provide services for restaurant, bar, and café licenses, including advice on kitchen design, fire safety, and hygiene standards to meet FEHD requirements.

  
  

• Financial and Corporate: Bestar can assist with complex licenses issued by the SFC, Insurance Authority (IA), and Companies Registry.

  
  

By leveraging the expertise of Bestar, you can focus on core business operations, save time and resources, and have peace of mind knowing that your licensing is being handled correctly and efficiently.

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