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The Business Registration Certificate fee waiver applies to sole proprietorships and unlimited partnerships. If you meet the requirements under Section 9 of the Business Registration Ordinance, you may apply for a BR fee waiver.
Source: Cap. 310 Business Registration Ordinance – Section 9 Exemption from payment for small businesses
General Accounting has consolidated the application process, key information, and important notes for applying for a Business Registration fee waiver, including the eligibility requirements for a BR fee waiver and a guide to completing the IRBR61 form (Form 3).
Further reading: Hong Kong Unlimited Company Incorporation Service | Company Registration Fees
Eligibility requirements for applying for a BR fee waiver
1. Applicable to unlimited companies only
That is, sole proprietorships and unlimited partnerships. Limited companies are not eligible.
2. Turnover meets the requirements
Service industries: average monthly turnover below $10,000;
Other industries: average monthly turnover below $30,000.
3. A proprietor may own only one sole proprietorship
A sole proprietorship owner applying for a Business Registration Certificate fee waiver may only have one sole proprietorship (unlimited company). If you operate two or more sole proprietorships, you are not eligible.
4. The same partners may operate only one partnership
For example, in a partnership operated by two people, A and B may jointly operate only one partnership. If A and B jointly operate two or more companies, they are not eligible.
However, if A and B operate one A&B partnership, and A and C operate another A&C partnership, since the partners are not the same, both the A&B company and the A&C partnership meet the eligibility requirements for a BR fee waiver.
Further reading:Differences Between Limited and Unlimited Companies
Deadline for applying for a Business Registration fee waiver
Existing businesses
You may apply for a waiver of the next year’s business registration fee and levy. The deadlines are as follows:
- Paper form application: submit between 3 months and 1 month before the BR validity period expires.
Example: If the Business Registration is valid until April 30, 2026, the application period is January 30 to March 30, 2026.
- Application via GovHK: submit between 3 months and 1 week before the BR validity period expires.
Example: If the Business Registration is valid until April 30, 2026, the application period is January 30 to April 23, 2026.
Newly commenced businesses
You may apply for a waiver of the BR registration fee and levy for the first year. The deadlines are as follows:
- Paper form application: submit within 1 month after applying for business registration.
Example: If the business registration application date is January 15, 2026, the deadline is February 15, 2026.
- Application via GovHK: submit within 7 weeks after applying for business registration.
Example: If the business registration application date is January 2, 2026, the deadline is February 20, 2026.
Source: Inland Revenue Department: Exemption from Business Registration or Payment
Process for applying for a Business Registration fee waiver
1. Assess eligibility: Calculate whether the average turnover meets the eligibility under Section 9 of the Business Registration Ordinance;
2. Calculate dates: Based on the business registration application date or validity period, submit “Form 3” before the deadline;
3. Submit application: Complete the IRBR61 form or submit via GovHK (www.gov.hk/br);
4. Completion: Wait for the Inland Revenue Department to issue a “Business Registration Certificate stating that the waiver has been granted.”
Further reading: 5 Key Requirements for Setting Up an Unlimited Company
Guide to IRBR61 (Form 3) for Business Registration fee waiver
1. Complete the applicant’s name, address, business name, and business address;
2. Fill in the company’s average turnover;
3. Enter the date of application for waiver of the business registration fee and levy;
4. Read the applicant’s declaration and select the signatory’s capacity;
5. Sign and date the form.
Important notes and reminders for applying for a BR waiver
1. BR waiver applications must be submitted using the original form. Applications by fax or email copy are not accepted.
2. Before the waiver is approved, if you receive a Business Registration renewal notice, you must pay the fee before the renewal deadline.
3. A BR fee waiver is valid for one year only and must be reapplied for annually.
Further reading:Steps to Set Up an Unlimited Company in Hong Kong
Definition and calculation method of average monthly turnover
Definition: Average monthly turnover refers to turnover, i.e., total gross income before deducting cost of sales, wages, rent, and operating expenses.
Note: On the IRBR61 form, this is referred to as “Average *Gross Sales/Receipts.”
How to calculate turnover for existing businesses:
Use the average turnover for the 6 months immediately before submitting the “Application for Exemption from Payment of Business Registration Fee and Levy” form.
Example:
Application date: February 1, 2026
The 6-month period before submission is August 1, 2025 to January 31, 2026
Assume total turnover for the 6 months is HK$150,000
Average monthly turnover: HK$150,000/6 = HK$25,000
How to calculate turnover for newly commenced businesses:
Use the estimated turnover for the first 6 months after commencement as the basis to calculate the average monthly turnover.
Example:
Commencement date: January 1, 2026
The first 6 months from commencement is January 1, 2026 to June 30, 2026
Assume the estimated total turnover for the 6 months is HK$120,000
Estimated average monthly turnover: HK$120,000/6 = HK$20,000
This meets the average monthly turnover requirement for a Business Registration Certificate fee waiver.
Frequently Asked Questions
Which businesses are eligible to apply for a Business Registration Certificate fee waiver?
- Business type restriction: Applicable only to sole proprietorships or unlimited partnerships. Limited companies registered in Hong Kong under the Companies Ordinance are not eligible.
- Turnover limit:
- Service industries: Average monthly turnover must not exceed HK$10,000.
- Other industries (e.g., retail, wholesale, etc.): Average monthly turnover must not exceed HK$30,000.
- Single-business restriction:
- A sole proprietor may own only one sole proprietorship.
- The same combination of partners may jointly operate only one partnership (e.g., an A–B partnership operating one company is eligible; if A and B operate two companies together, neither is eligible).
What is the deadline for applying for a Business Registration fee waiver?
- Newly commenced businesses (applying for a waiver for the first year):
- Paper form application: Must be submitted within 1 month after submitting the business registration application.
- Online application (GovHK): Must be submitted within 7 weeks after submitting the business registration application.
- Existing businesses (applying for a waiver for the next year):
- Paper form application: Must be submitted 1 month before the current Business Registration Certificate expires.
- Online application (GovHK): Must be submitted 1 week before the current Business Registration Certificate expires.
How is “average monthly turnover” calculated? Can costs be deducted?
- Existing businesses: Divide the total turnover for the “6 months prior” to submitting the waiver application form by 6.
- Example: If you apply on February 1, 2026, calculate the average based on total income from August 1, 2025 to January 31, 2026.
- Newly commenced businesses: Divide the estimated total turnover for the “first 6 months” after commencement by 6.
What is the specific process for applying for a BR fee waiver?
- Self-assessment: Confirm whether the business type and the average monthly turnover for the past 6 months (or estimated) meet the above limits.
- Complete the form: Complete the IRBR61 form (i.e., Form 3), including applicant details, average turnover, and the declaration.
- Submit the application: Submit the paper form by post/in person, or submit electronically via GovHK.
- Await approval: If approved, the Inland Revenue Department will issue a “Business Registration Certificate stating that the waiver has been granted.”
If I receive a payment demand note during the application period, do I need to pay first?
Yes. Before the Inland Revenue Department formally approves the waiver and issues the new exemption certificate, if you receive a renewal payment demand note for your Business Registration Certificate, you must pay the fee by the deadline stated on the notice. This is to avoid late-payment penalties due to processing delays. Once the waiver is approved, the Inland Revenue Department will handle the relevant arrangements.
After the waiver is granted, do I no longer need to pay the business registration fee permanently?
No. The business registration fee waiver is valid for 1 year only. Even if your business continues to meet the low-income threshold, you must submit the IRBR61 form again each year to maintain eligibility for a waiver for the following year.
Conclusion
General Accounting has been established for over 20 years and provides limited and unlimited company incorporation services. Trust or Company Service Provider licence no.: TC002940. If you have any questions about applying for a BR fee waiver, our professional Client Service Managers can provide free initial consultation support for company incorporation.
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