Recently, we have received many inquiries regarding the business nature on Business Registration Certificates. Most involve receiving requests from the Business Registration Office to submit a Notice of Commencement of Business by a Corporation. This usually happens when clients set up a company themselves but fail to submit Form IRBR200, resulting in the business nature remaining as “CORP” for a long period. Consequently, the Registry requires the company to submit the notice as soon as possible.
This article explains the meaning and reasons behind the business nature “CORP” on a Business Registration Certificate. It provides a step-by-step guide on how to change the BR business nature from “CORP” and the method for notifying the commencement of business, helping you better understand how to select a BR business nature.
Further Reading: Hong Kong Business Registration Certificate | Business Registration Certificate Fees
What does the business nature "CORP" mean for business registration?
The business nature “CORP” on a business registration refers to a newly incorporated limited company that has not yet submitted a notice of commencement of business to the Business Registration Office. Because the company has not submitted the Notice of Commencement of Business by a Corporation (IRBR200), the business nature column on the Business Registration Certificate displays “CORP“.
Why is it important to change the business registration business nature from "CORP"?
According to the Business Registration Ordinance (Chapter 310), a limited company must submit a Notice of Commencement of Business by a Corporation (IRBR200) to the Business Registration Office within one month of starting business operations. This notice provides the business commencement date, business nature, registered office address, and business name.
Failure to submit the Notice of Commencement of Business by a Corporation (IRBR200) as required by the Business Registration Ordinance can result in a maximum penalty of a HK$5,000 fine and one year of imprisonment (1). Therefore, if a limited company has commenced operations, the person in charge must ensure that the company’s Business Registration Certificate displays an appropriate business nature rather than “CORP”.
More importantly, banks may refuse to open a corporate bank account if the business nature on the Business Registration Certificate is “CORP”. Opening a limited company account requires proof of business; if the company has not yet submitted a commencement notice, it implies the business has not started, making it impossible to provide operational proof.
How to change the BR business nature from "CORP"? Method for notifying business commencement
Within one month of incorporating a limited company and commencing operations, simply complete the Notice of Commencement of Business by a Corporation (IRBR200) and submit it to the Business Registration Office. The information required includes:
- Business Registration Number
- Company name in Chinese and English
- Date of commencement
- Business Name
- Nature of business
- Business address
More details: Detailed Guide to the Notice of Commencement of Business by a Corporation
What are the "Business Description and Nature" on a Business Registration Certificate?
Simply put, it describes what type of business the company conducts. For example, the business description and nature for a restaurant would be “Catering Services.”
**Note: The updated 2024 NAR1 form includes new business nature information. When filling out the NAR1 business nature, you must refer to the List of Codes and Descriptions of Business Nature compiled by the Companies Registry.
Guide to Choosing Business Registration Business Nature
General Accounting advises entrepreneurs to use the “List of Codes and Descriptions of Business Nature” as a standard when choosing the company’s business registration business nature.
1. Check the General Classification of Business Nature
Select the code for your company’s business type, then choose the appropriate business nature description from the List of Codes and Descriptions of Business Nature to serve as your company’s business registration business nature.
Examples of Choosing BR Business Nature
Suppose the company’s business is to purchase property in the company’s name. In the General Classification of Business Nature, this is coded under “Category K: Financial and Insurance Activities, numbers 064 to 066.” The business nature description for number 064 is “Financial and Insurance Activities, select Investment and Holding Companies,” which fits the definition of “purchasing property in a company’s name.”
Frequently Asked Questions
Q: Will the business nature on a Business Registration Certificate for an unlimited company display "CORP"?
A: No, because an unlimited company must apply for a Business Registration Certificate within one month of commencing business.
Q: Must the BR business nature be consistent with the company name?
A: No, the BR business nature does not need to have a direct relationship with the company name.
Q: Will the Business Registration Office ever disapprove a change in business nature?
A: It is possible, particularly for specialized industries or professions that require licenses, such as banking and law.
Conclusion
“CORP” on a Business Registration Certificate indicates that a newly incorporated limited company has not yet submitted a Notice of Commencement of Business (IRBR200) to the Business Registration Office, resulting in the business nature being displayed as “CORP.” According to the Business Registration Ordinance, a company must submit this notice within one month of commencing operations; otherwise, it may face fines and imprisonment.
The method for changing the business nature is to complete and submit Form IRBR200, which includes the company name and business description. When choosing a business nature, refer to the List of Codes and Descriptions of Business Nature to ensure the selection matches the actual business. Detailed steps and information can be found in the relevant guidelines.
General Accounting has been established for over 20 years and provides Hong Kong limited company incorporation services (Trust or Company Service Provider License No.: TC002940). If you have any questions regarding business nature, our professional customer service managers can provide a free initial consultation for Hong Kong company registration services.
Further reading:
Sources
1. Inland Revenue Department Notice on Business Registration
Ref: https://www.ird.gov.hk/eng/pdf/br_202001_e.pdf
