In order for companies to function, there are many things they first need to have. Whether it’s qualified personnel, a works’ premises or sufficient finance, all can prove crucial.
When companies seek to operate in Hong Kong, there are other hurdles they need to overcome. In order to enjoy the low tax and earning potential this nation offers, they need to have a business registration number and company registration number.
This opens the door to them obtaining somewhere to work and the start of their financial activities. Because the numbers seem so similar, it’s understandable that many people become initially confused between the two.
This article provides a brief discussion of both registration numbers and discusses the difference between the two.
The Business Registration Number
A company will need to be registered with the government, whether it’s a trade, profession, or otherwise. You wouldn’t be exempt if you were operating on a non-profit basis or if you simply view your operation as a social club with a premise for operation.
Whilst it’s a complex legal process, registration is needed whether you are based in Hong Kong or reaching out from overseas. If the application is successful, a BRC (Business Registration Certificate) will be issued.
The Tax Aspect
The Inland Revenue Department (IRD) is the body that issues the Business Registration Number (BRN), and it will be a sequence of digits. Many companies will be familiar with TIN (Tax Identification Numbers), and the BRN will serve this purpose.
The number will be needed when submitting tax returns and when the company is performing its regular business. This includes such financial activities as opening bank accounts and signing business contracts.
Anyone who is confused or who needs more information on the subject would learn more on the internet. Businesses in Hong Kong can learn more about company and business registration numbers and why they are needed.
They can also access online platforms offered by companies that serve as entrepreneurs’ operating systems. Whether it’s help for startups, SME’s, investors, or e-commerce businesses, there are services, resources, and overseas guides that can be accessed. The internet can connect people to companies that are experts in company corporations.
Finding The Details
Sometimes businesses need to check the BRN of a company they are doing business with to make sure they are registered with the IRD. This can be achieved by using the eTAX service, and all you need to do is enter the company name and location.
If a company needs to be reminded of its own BRN (and it has been previously registered), there is no charge for consulting the GovHK Business Registration Number Enquiry facility.
The Company Registration Number
CRNs (company registration numbers) supplement the company’s name and BRN, acting in a similar way to a social security number. When documents are drawn up or completed (including government records), the CRN will be used as a form of identification. If your business has already obtained a Certificate of Incorporation, the CRN will be located at the top left.
The number will not change over time, even if your business changes its name or the type of work that it is involved in. Whether you are removing a company’s chief or terminating an organization, you’ll need this number. The same requirement exists should you issue share certificates or dividends vouchers. The CRN would also be required when you complete the annual return NAR1, plan your company’s objectives or change the company director’s address details or passport.
The Differences Between The Two
As we have already stated, the BRN acts as a Tax Identification Number, connecting it to Hong Kong tax legislation. When Profits Tax Returns (PTR) are completed, or audit reporting is initiated, it’s the Business Registration Number that is used.
We have already compared the Company Registration Number to a social security number. It integrates the company within the government records and forms part of its legal identity. Businesses use the number for all their business and banking activities. Whilst the BRN is the first eleven digits of the certificate number, the CRN comprises seven-digit numbers. Both sets of data can be discovered using online services.
The processes for obtaining each number are as different as their individual functions. Once a company has secured both, it will be fully empowered to operate within Hong Kong, whether it is by renting office space or paying its taxes. It will then be in a good position to ride the wave of the nation’s economic growth and enjoy the possibility of both profits and expansion.