If you are planning to start a business in Hong Kong, one of the first questions you probably have is: “How much is this going to cost me?”

When setting up a new business, you will encounter two main types of costs: agency service fees (for handling the paperwork) and mandatory government fees. While service fees vary from agency to agency, the government fees are strictly regulated.

In Hong Kong, government fees consist of two main parts: the Companies Registry (CR) fee and the Business Registration (BR) fee (issued by the Inland Revenue Department).

Here is the exact breakdown of the standard government fees depending on the type of company you want to set up.

In Hong Kong, the government fees for setting up a business consist of two main parts: the Companies Registry (CR) fee and the Business Registration (BR) fee (issued by the Inland Revenue Department).

Here is the breakdown of the standard government fees for both company types:

1. Limited Company (Private Company Limited by Shares)

A limited company must register with both the Companies Registry and the Inland Revenue Department.

• Companies Registry (CR) Incorporation Fee: HK$1,720
• Business Registration (BR) Fee (1-year certificate): HK$2,150 (Standard fee: HK$2,000 registration fee + HK$150 Protection of Wages on Insolvency Fund levy)
• Total Standard Government Fee: HK$3,870

2. Unlimited Company (Sole Proprietorship or Partnership)

An unlimited company does not need to be incorporated at the Companies Registry. It only requires a Business Registration Certificate from the Inland Revenue Department.

• Companies Registry (CR) Fee: HK$0 (Not applicable)
• Business Registration (BR) Fee (1-year certificate): HK$2,150 (Standard fee: HK$2,000 registration fee + HK$150 levy)
• Total Standard Government Fee: HK$2,150

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⚠️ Important Note on Government Concessions

The Hong Kong government frequently announces fee waivers or concessions in its annual budget, specifically regarding the HK$2,000 Business Registration fee.

When a concession is active, the government waives the HK$2,000 portion, meaning business owners only have to pay the HK$150 levy.

• If a waiver is active, the total fee for a Limited Company drops to HK$1,870.
• If a waiver is active, the total fee for an Unlimited Company drops to just HK$150.

Tip for your service package: When quoting the government fee to your clients, it is best to state: “Government fees are billed at cost (Standard rate is HK$3,870 for a Limited Company, but may be lower depending on current government waivers).”

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Because the government occasionally changes these fees or introduces temporary waivers (especially for the Business Registration fee), it is highly recommended to bookmark these pages:

1. Inland Revenue Department (IRD) – For Business Registration (BR) Fees

This fee applies to both Limited and Unlimited companies. This page is crucial because it shows the current active rate, including any temporary government waivers or concessions.

• Official BR Fee Page: https://www.ird.gov.hk/eng/tax/bre_fee.htm
• BR Fee Table (PDF): The IRD also maintains a direct PDF table showing the historical and current fees: https://www.ird.gov.hk/eng/pdf/brfee_table.pdf

2. Companies Registry (CR) – For Incorporation Fees

This fee applies only to Limited companies (Private Companies Limited by Shares).

• Official CR Fees Page: https://www.cr.gov.hk/en/services/fees.htm
• Note: On this page, look under the section titled “Incorporation of a Local Limited Company” to see the exact breakdown of the application fee.