Starting a Financial Services or Medical Device Business in Hong Kong? Here's What You Need to Know About Obtaining Licenses and Permits.
Hong Kong continues to be the world’s freest economy in 2022, according to the Fraser Institute.
Overall there is relatively little government intervention and low barriers to entry when forming a company. The company registration process in Hong Kong is fast, and many industries do not require specific licensing as they would in other countries.
In this article we’ll answer:
What is the difference between a Business “Registration” Certificate and a Business “Licence”?
What licenses are required to operate in certain industries in Hong Kong?
Firstly, let’s start with some important distinctions.
What is the difference between a Business “Registration” Certificate and a Business “Licence”?
Business Registration
The “Business Registration” Certificate (see a sample from the Inland Revenue Department) is a document confirming basic business details. It needs to be renewed at regular intervals for as long as the business is operational.
All companies are required to register their business with the companies registry. This document reports key details to the government such as its name, business activities, and address. It is not a permit, in the sense that it is not a requirement to obtain this document to start a business in a particular industry.
Business Licence
A general ‘business licence’ does not exist in Hong Kong. Most people can start a business. However, some professions or activities require specific licences to operate.
General trade in most products and services does not require a licence; however, it pays to check for your industry. The government offers a directory for licences, so you can check what your unique requirements are. Take a look at the Support and Consultation Centre for SMEs for details, or contact us for advice specific to your business.
Common businesses and activities with their licence requirements in Hong Kong
Here are some of the common licences required when setting up a business in Hong Kong.
Financial Services Consulting and Advisory
Unlike some countries, such as the United States, you do not require a licence to offer consulting services in most industries. Financial services and financial consulting may require a licence, depending on the service offered.
Shepherd Asia works with consultants who can help you apply for and maintain your licence as required by the Hong Kong Securities and Futures Commission.
Import and Export
The Hong Kong Trade and Industry Department encourages trade as much as possible:
“We pursue a free trade policy and do not maintain barriers on trade. No tariff is charged on import or export of goods. Although licensing is required for the import and export of some goods, this is only to fulfil obligations undertaken by Hong Kong to our trading partners, or to meet public health, safety or internal security needs. The licensing procedures are as simplified as possible in such cases.”
Licences for Venues
Commercial bathhouses, funeral parlours, offensive trades, swimming pools, and undertakers;
Places of public entertainment, including cinemas, theatres, entertainment machine centres and exhibition venues; and
Temporary places of public entertainment including charity shows or religious ceremonies held temporarily by Kai Fong or other commodities, circuses holding temporarily and dance parties holding temporarily.
Food Licencing
The Food and Environmental Hygiene Department offers a Guide on Types of Licences Required
– Food and Environmental Hygiene Department, Hong Kong.
Restaurant Licence: “for the food business which involves the sale of meals or unbottled non-alcoholic drinks”
Liquor Licence
Import & export of certain products.
For example, rice, toys, restricted medical products, food, and other ‘Strategic Commodities’ as listed on the Trade and Industry Department website.
Licences for the Sale of Medical Devices
Products, devices, and materials may require separate licences.
If, for example, the device involves certain restricted materials, such as radioactive materials, you may require a separate licence for this.
There is a voluntary register to register your medical device. Most hospitals will require a company to be registered in order to purchase a device or instrument from you.
Consultants are available to assist with medical device registration; we would be happy to refer you to them.
Ask us for more information on any of these licences for your business if you are in Hong Kong or thinking of entering the Hong Kong Market. We are happy to assist at any stage of the advisory, application, and business registration process.
