Hong Kong Fact-File Part 1: Hong Kong Business
Formation for Individuals
1.4 Hong Kong Individual Business Licensing
Licensing of individual business activity
Many types of business require licenses
to operate in Hong Kong, including operations providing food,
beverages or tobacco, retailers, telecommunications, providers,
and many types of service providers. Further information,
including guidance on how to complete license application
forms can be found at: www.success.tid.gov.hk; by submitting
information on the planned size, type and location of the
business, targeted information on the license type, and how
to obtain it, can be found.
Below are just a few examples:
A general restaurant license from the Hong Kong Food and Environmental
Hygiene Department is required when the establishment intends
to sell food and non-alcoholic beverages. If alcohol is to
be sold, then a liquor license is needed from the Liquor Licensing
Board in addition to the general license. If alcohol is also
to be stored on the premises but is not necessarily for immediate
consumption, then a License for Storage and Manufacture of
Dangerous Goods must be applied for from the Fire Service
Department.
A Bakery License is required if baked goods are produced in
the restaurant’s kitchen and sold over the counter for customers
to take away. If the baked goods are solely for consumption
on the premises, then no such license is needed.
Sushi, raw meat, sashimi and oysters are classed as restricted
foods and a Restricted Food Permit is required before an establishment
can sell such products.
Should the restaurant owner wish to provide entertainment
in the form of Karaoke for their patrons, a Karaoke Establishment
Permit is required. Please note that such a permit is usually
only issued if a General Restaurant License applies to the
same restaurant.
All of the restaurant/food related licenses must be applied
for from the Hong Kong Food and Environmental Hygiene Department
and their cost depends on all of the above factors.
Employment agencies must apply for a license from the Hong
Kong Labour Department; travel agents must register with the
Hong Kong Travel Agent’s registry.
Educational institutes must be in possession of a ‘Certificate
of Registration of a School’ from the Hong Kong Education
Department. The certificate is necessary for all educational
establishments from Kindergarten upwards.
Event management is a very complex area and a number of different
licenses may have to be obtained prior to staging an event
such as concerts, ballets, circuses, exhibitions, bazaars,
fun fairs and dance parties. The ‘Place of Public Entertainment
License’ is the primary license and is issued by the Hong
Kong Food and Environmental Hygiene Department. The department
can advise the applicant on any other potential licenses required
and how to obtain them.
The Hong Kong Securities and Futures Ordinance (SFO) outlines
the activities regulated by the Securities and Futures Commission
(SFC). Advising on and dealing in financial securities, futures
and corporate finance and asset management services are among
the categories that require an intermediary to hold a valid
‘Financial Services License’. The SFC deals with applications.
Businesses engaging in import/export activities are covered
by different licenses relevant to the goods to be imported/exported.
For instance, a license for dutiable goods is required for
alcohol, tobacco, hydrocarbon oils and methyl alcohol. Chemicals,
birds and animals, pharmaceuticals, pesticides, plants, rough
diamonds and textiles are among those items that require a
relevant license. The Customs and Excise Department of Hong
Kong issues most of these licenses and can provide further
information.
Retail shop licenses vary depending on the goods sold, for
example: boarding kennels need a license for a pet shop, to
sell Chinese herbs, a license has to be issued by the Department
of Health, as does a license for running a cosmetics, pharmaceutical
and/or drugs store.
The cost of business licensing, initially and ongoing
Costs of business licenses vary widely and depend on the industry.
For instance, once an educational establishment has been properly
licensed, this license does not expire and no renewal fees
are payable.
A general import/export license is HKD950 , a bonded warehouse
license is HKD19,250. The license must be renewed annually
with any license amendment attracting an additional fee of
HKD350.
For travel agents the application fee is HKD630 and the license
fee is HKD485 per month. Licenses for travel agents are HKD2,000
on application and for each renewal.
As mentioned before, restaurant licenses vary widely and depend
on the type of food the restaurant will be selling, whether
alcohol will be served and whether outside seating is available.
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