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Setting Up a Metal Scrap Recycling Company

Setting Up a Metal Scrap Recycling Company

Hong Kong offers potential for a metal scrap recycling company. Here's a breakdown of steps to get you started:

Market Research:

  • Industry Research: Hong Kong has a well-established scrap metal recycling industry. Research existing players like Lee Kee Group [Lee Kee Group Hong Kong] and Chiho Environmental [Chiho Environmental Group Limited]. Understand their areas of focus and identify potential niches.

  • Demand Assessment: Identify the types of scrap metal most generated in Hong Kong (ferrous vs. non-ferrous) and their sources (construction, manufacturing, end-of-life vehicles).

  • Regulation Research: Understand environmental and safety regulations for handling scrap metal in Hong Kong. The Environmental Protection Department (EPD) is a good starting point [Hong Kong Environmental Protection Department website].

Business Planning:

  • Develop a Business Plan: Outline your company's vision, target market, services offered (collection, processing, trading), and financial projections.

  • Secure Funding: Financing can come from personal savings, loans, or investors. Prepare a compelling business plan to attract investment.

Company Registration:

  • Register Your Business: Choose a business structure (sole proprietorship, partnership, limited liability company) and register with the Companies Registry.

  • Obtain Licenses and Permits: Apply for necessary licenses from EPD for handling and processing specific types of scrap metal.

Operational Setup:

  • Find a Location: Secure a yard for storing and processing scrap metal. Consider factors like zoning regulations, accessibility for transportation, and environmental impact.

  • Equipment: Depending on your processing needs, acquire equipment like sorting tables, shredders, balers, or furnaces.

  • Transportation: Establish a reliable transportation network for collecting scrap metal from various sources.

  • Build Partnerships: Partner with metal processing facilities or exporters to ensure a market for the recycled scrap.

Additional Considerations:

  • Environmental Sustainability: Highlight your commitment to environmentally responsible recycling in your marketing and operations.

  • Safety: Implement safety protocols for handling potentially hazardous materials. Train employees in proper handling and storage techniques.

  • Community Engagement: Build positive relationships with your local community by addressing concerns about noise, dust, or traffic.

Metal Scrap Recycling Licence

In Hong Kong, you don't necessarily need a single specific "Metal Scrap Recycling Licence" to operate. However, obtaining a license from the Environmental Protection Department (EPD) is crucial if your business involves certain processes. Here's a breakdown:

  • Waste Disposal Ordinance (WDO): The EPD regulates scrap metal under the WDO.

  • Focus on Processes: The EPD issues licenses for specific processes you perform on the scrap metal, not just for possession. Examples include crushing, shredding, sorting, or baling.

  • Licensing Categories: The EPD categorizes waste types and assigns them a "Waste Gate Fee." The type of license you need depends on the specific scrap metal and the processes involved.

Here are some resources to help you navigate the licensing process:

  • EPD website: The EPD website provides information on waste licensing procedures and a downloadable guide on "A Guide to the Control on Import and Export of Waste". This guide details the application process and authorization requirements for handling imported waste.

  • Contacting EPD: The EPD offers the most up-to-date information. Contact them directly to discuss your specific needs and determine the license requirements for your planned operations.

Here are some additional points to consider:

  • Exemptions: Certain small-scale recycling activities may be exempt from licensing requirements. However, it's best to confirm with the EPD to avoid any complications.

  • Compliance: Operating without a proper license is a serious offense and can result in fines or even closure of your business.

By following these steps and consulting with the EPD, you can ensure your metal scrap recycling company operates legally and responsibly in Hong Kong.


  • Hong Kong Environmental Protection Department [Hong Kong Environmental Protection Department website]

  • Hong Kong Trade Development Council (HKTDC) [Hong Kong Trade Development Council website]

Remember, this is a general roadmap. It's advisable to consult with a business advisor or lawyer specializing in Hong Kong regulations for starting a recycling company.

How Bestar can Help

How Bestar is able to help you set up a metal scrap recycling company in Hong Kong:


  • Business Registration and Licensing: Bestar specializes in helping businesses register in Hong Kong. This includes helping you choose a business structure, register with the Companies Registry, and obtain necessary licenses and permits from the EPD for handling scrap metal.

  • Business Consulting: We offer general business consulting services to help you develop a business plan, secure funding, and navigate the Hong Kong business environment.

  • Environmental Compliance: Bestar has expertise in environmental regulations related to scrap metal recycling. We could advise you on complying with EPD requirements and obtaining the necessary licenses for your specific processes.

Here's what you can do to find out how Bestar can help:

  • Contact Bestar: Inquire about the services we offer for businesses setting up a metal scrap recycling company in Hong Kong. Explain your goals and we can assist you.

  • Check our website or online presence: Bestar has a website or online profiles that detail our areas of expertise and services offered.

By contacting Bestar and reviewing our available information, you'll get a clearer idea of how we can specifically help you establish your metal scrap recycling company in Hong Kong.


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