Set Up Your HORECA Company in Hong Kong: A Complete Guide
- a22162
- Oct 9
- 7 min read
Set Up a HORECA Company in Hong Kong
Set Up Your HORECA Company in Hong Kong: A Complete Guide
Hong Kong is a global culinary hub and a prime location for the HORECA (Hotel, Restaurant, and Catering) industry. Known for its business-friendly environment, low corporate tax, and streamlined registration process, the city offers entrepreneurs a fertile ground for their food and beverage (F&B) ventures.
This comprehensive guide will walk you through the essential steps, from initial company incorporation to securing the necessary restaurant licenses and F&B permits to ensure your HORECA business is set up legally and efficiently in Hong Kong.
Step 1: Company Incorporation and Business Registration in Hong Kong
The first step for any business, including a HORECA company, is formal registration. The most common structure for foreign and local entrepreneurs is a Private Limited Company.
1. Choose Your Company Name and Structure
Company Name: Must be unique and not identical to any existing company. You can choose a name in English, Chinese, or both, but a mixed language name is generally not allowed (e.g., "Global Trading 有限公司"). Check availability via the Companies Registry's Cyber Search Centre.
Business Structure: The Private Limited Company is recommended as it offers limited liability, protecting shareholders' personal assets.
2. Meet Key Incorporation Requirements
One Director: At least one director (can be of any nationality and need not be a Hong Kong resident).
One Shareholder: At least one shareholder (can be the same as the director).
Local Company Secretary: Mandatory. Must be a Hong Kong resident or a corporate body incorporated in Hong Kong. The sole director cannot also be the company secretary.
Registered Office Address: A physical address in Hong Kong (a P.O. Box is not sufficient) for official government correspondence.
3. Prepare and Submit Incorporation Documents
You will need to submit the following to the Companies Registry (CR) and Inland Revenue Department (IRD):
Incorporation Form (Form NNC1): For a company limited by shares.
Articles of Association (AA): Outlines the company's internal rules and governance.
Notice to Business Registration Office (IRBR1): Business registration is a simultaneous, one-stop process with company incorporation.
Identity Documents: Copies of passports/HKID and proof of residential address for directors and shareholders.
Consent to Act as Director.
Timeline: Online application can be processed quickly, often resulting in the Certificate of Incorporation and Business Registration Certificate being issued within a few hours to one working day.
4. Open a Corporate Bank Account
Once incorporated, you'll need to open a corporate bank account with a local or international bank in Hong Kong to manage your business finances.
Step 2: Securing Essential HORECA Licenses and Permits
Unlike standard companies, the HORECA sector is heavily regulated for public health and safety. Your most crucial step is securing the necessary permits from the Food and Environmental Hygiene Department (FEHD) and other relevant bodies.
1. General Restaurant License (GRL)
Who needs it? Any full-service establishment selling food and non-alcoholic beverages for consumption on the premises.
Process: This is the most complex license. You must submit a detailed application, including scaled metric layout plans of the premises, to the FEHD. The layout will be vetted by the FEHD, the Buildings Department, and the Fire Services Department to ensure compliance with health, building, and fire safety regulations.
Timeline: The process can take several months, often involving inspections, compliance reports, and a final verification. A Provisional License may be issued after satisfying essential requirements, allowing you to commence operation while awaiting full approval.
2. Other Food Business Licenses (If Applicable)
Depending on your specific operation, you may require additional specialized licenses from the FEHD:
Light Refreshment Restaurant License: For establishments serving only a limited range of simple food items (e.g., coffee shops, bakeries with limited seating).
Food Factory License: If you operate a central kitchen or prepare food for outside distribution (e.g., catering service, bakery production).
Restricted Food Permits: Required for selling specific regulated food items like frozen confections, milk, cut fruit, or raw oysters.
3. Liquor License
Who needs it? Any establishment that intends to sell or supply alcoholic beverages for consumption on the premises.
Process: This is a separate application handled by the Liquor Licensing Board (LLB). A valid General Restaurant License is a prerequisite, and the application often requires advertising the intention to sell liquor to the public.
4. Other Operational Permits
Public Entertainment License (PEL): Required if your venue includes entertainment like music, dancing, or karaoke.
Trade Effluent Surcharge: Applicable for wastewater disposal.
Step 3: Premises Selection and Compliance
The selection of your business location is paramount in the HORECA industry, as it must satisfy stringent regulations before any licenses can be granted.
Zoning and Usage: Ensure the premises' land use and building structure are approved for restaurant or catering operations.
FEHD, Buildings, and Fire Safety Compliance: Your premises must meet minimum statutory requirements for ventilation, kitchen structure, drainage, and fire safety. It is highly recommended to engage a consultant or architect with experience in Hong Kong F&B licensing to ensure your fit-out plans are compliant from the start.
Step 4: Post-Incorporation Compliance and Operations
Employee Requirements: Comply with the Employment Ordinance, including mandatory contribution to the Mandatory Provident Fund (MPF) for eligible employees.
Tax Compliance: Your company is subject to Hong Kong's two-tiered profits tax regime (8.25% on the first HK$2 million of assessable profits, and 16.5% on the remainder). File an annual Profits Tax Return with audited financial statements.
Annual Filings: Submit an Annual Return (NAR1) to the Companies Registry and hold an Annual General Meeting (AGM).
Why Choose Hong Kong for Your HORECA Business?
Strategic Location: Gateway to Mainland China and a major international travel hub, ensuring a continuous flow of potential customers.
Low and Simple Taxation: Attractive profits tax rates and no VAT, sales tax, or capital gains tax.
World-Class Infrastructure: Excellent logistics, supply chain networks, and financial services support the F&B sector.
Ease of Setup: A transparent and efficient system for company registration in Hong Kong, although specialized licensing for HORECA requires diligence.
HORECA licensing is complex and subject to change. It is strongly advised to seek professional legal, accounting, and licensing consultation before commencing the setup process.
Expert HORECA Launchpad: How Bestar Hong Kong Simplifies Setting Up Your F&B Company
Set Up Your HORECA Company in Hong Kong: A Complete Guide
Starting a HORECA (Hotel, Restaurant, and Catering) business in Hong Kong is an exciting venture, but the process involves navigating intricate corporate laws and complex food business licensing regulations. Partnering with an experienced corporate service provider like Bestar Hong Kong is the key to a fast, compliant, and stress-free launch.
Bestar offers a comprehensive, one-stop solution that handles everything from company incorporation to ongoing compliance, allowing you to focus on your menu and operations.
Phase 1: Streamlined Hong Kong Company Incorporation
The foundation of your restaurant or catering business must be legally sound. Bestar’s corporate services ensure your company is registered efficiently and correctly from day one.
1. Expert Pre-Incorporation Guidance
Optimal Structure Selection: Bestar advises on the most suitable legal entity, typically a Private Limited Company, outlining the benefits of limited liability and tax efficiency for your F&B business model.
Name Check and Reservation: They conduct a thorough check with the Companies Registry (CR) to secure a compliant name, preventing delays in your company registration in Hong Kong.
2. Fast and Error-Free Registration
Full Document Preparation: Bestar handles all mandatory paperwork, including the preparation of the Articles of Association and the submission of the Incorporation Form (NNC1).
One-Stop Filing: They manage the simultaneous filing with the CR and the Inland Revenue Department (IRD) for your Business Registration Certificate, ensuring a rapid and compliant incorporation process.
Statutory Requirements Fulfillment: Bestar provides the legally mandatory resources:
Local Company Secretary Services: Appointing Bestar as your corporate secretary fulfills the statutory requirement, handling all administrative and compliance tasks from the start.
Registered Office Address: Providing a required physical address in Hong Kong for all official government and legal correspondence.
3. Corporate Bank Account Assistance
Bank Liaison: Opening a corporate bank account in Hong Kong can be challenging for non-resident directors. Bestar leverages its network and expertise to pre-vet your documents, streamline the application, and increase the likelihood of a successful account opening with their partner banks.
Phase 2: Mastering HORECA Licensing and Compliance (The Critical Step)
The most complex part of launching an F&B operation is obtaining the required restaurant licenses and FEHD permits. Bestar provides critical support to navigate the rigorous approval process by the Food and Environmental Hygiene Department (FEHD), the Buildings Department, and the Fire Services Department.
1. Strategic Licensing Consultation
License Mapping: Bestar determines the exact Hong Kong food licenses required based on your business type (e.g., General Restaurant License, Light Refreshment License, Food Factory License, or various Restricted Food Permits).
Liquor License Application: For venues serving alcohol, Bestar assists with the separate, multi-stage application process for the Liquor License from the Liquor Licensing Board (LLB), coordinating with all necessary approvals.
2. Premises Vetting and Compliance Management
Pre-Vetting Support: The General Restaurant License requires premises to meet strict structural, fire safety, and hygiene standards. While Bestar may not be architects, they coordinate with your appointed professionals (e.g., architects, engineers) to ensure layout plans and compliance reports meet the FEHD’s exacting standards before submission.
Liaison with Authorities: Bestar acts as your official contact with all government departments (FEHD, Buildings, Fire Services) throughout the inspection and approval phase, managing communication to prevent procedural delays.
Phase 3: Ongoing Accounting and Regulatory Compliance
Compliance doesn't end after incorporation and licensing. Bestar ensures your HORECA company remains in good standing year after year.
Service Area | Bestar's Value for HORECA Businesses | Key Focus |
Corporate Secretarial | Handles the mandatory annual return (NAR1), maintains statutory records, and advises on changes to directors or share capital. | Hong Kong Corporate Secretary, Annual Return Filing |
Accounting & Bookkeeping | Manages daily financial transactions, especially critical for high-volume F&B businesses, using specialized accounting software. | Hong Kong F&B Accounting, Bookkeeping Services |
Statutory Audit & Tax | Arranges the mandatory annual audit and prepares the Profits Tax Return, ensuring compliance with Hong Kong’s low, two-tiered tax system. | Hong Kong Tax Filing, Annual Audit Service |
HR & Payroll | Manages staff contracts, MPF contributions, and payroll processing, essential for the high employee turnover common in the catering industry. | Hong Kong Payroll Outsourcing, MPF Compliance |
By choosing Bestar Hong Kong, you gain a trusted partner to navigate the legal complexities of the competitive Hong Kong HORECA market, transforming a lengthy setup process into a smooth launch.
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