Hong Kong has implemented a Unique Business Identifier (UBI) initiative to distinguish companies and entities in transactions and regulatory processes. The initiative is conducted in two phases by the Companies Registry, with the first phase starting on 1 November 2021 for Limited Partnership Funds, and the second phase rolling out on 27 December 2023. The Business Registration Number (BRN), issued by the Inland Revenue Department, has been adopted for this purpose.
This article will provide an overview of the BRN and its significance to Hong Kong’s businesses:
- What is a Business Registration Number (BRN)?
- Which business requires a BRN?
- How to obtain a BRN?
- What is the Business Registration Number of my Entity?
- Where is the BRN used?
- What are the benefits of having a BRN?
What is a Business Registration number (BRN)?
In Hong Kong, every registered business entity receives a Business Registration Number (BRN) from the Business Registration Office, which operates under the Inland Revenue Department (IRD). This 8-digit identifier is important in ensuring businesses adhere to local regulations and meet their tax requirements.
Which business requires a BRN?
Under the Second Phase of the Unique Business Identifier (UBI) system, effective from 27 December 2023, a Business Registration Number (BRN) is compulsory for most business entities. They include:
- Limited Partnership Funds (“LPFs”);
- Companies incorporated or registered under the Companies Ordinance;
- Open-ended fund companies incorporated or registered under Part IVA of the Securities and Futures Ordinance;
- Limited partnerships registered under the Limited Partnerships Ordinance;
- Registered trustees corporations incorporated under the Registered Trustees Incorporation Ordinance;
- Other entities formed or registered under various Ordinances administered by the Registrar of Companies;
The Business Registration Number (BRN) replaces the company registration number on certificates issued by the Companies Registry for incorporation, registration changes, and name changes. It must also be included on specified forms and documents submitted to the registry. The BRN will become the primary identifier used to search for and identify companies or entities across various services provided by the Companies Registry.
How to obtain a BRN?
Obtaining a business registration number in Hong Kong is a straightforward process with several key steps:
- Register your business with the Hong Kong Companies Registry.
- After successfully registering your business, the next step is to obtain a Business Registration Certificate from the Inland Revenue Department. This certificate confirms your business registration status and includes details such as your business name, address, and the assigned business registration number.
- Your business registration number is issued to you along with the Business Registration Certificate by the Inland Revenue Department.
What is the Business Registration Number of my Entity?
For companies incorporated/registered on or after 27 December 2023, the BRN is the eight-digit number as the “No.” on the “Certificate of Incorporation” or “Certificate of Registration of Non-Hong Kong Company” issued by the Companies Registry.
Certificates for companies or entities established prior to the introduction of UBI will not be reissued to replace existing ones.
Existing companies and entities in Hong Kong registered before 27 December 2023, which do not have a BRN (such as companies exempted from registration) have been assigned a dummy BRN. This dummy BRN is derived from their existing Company Number, CR Number, or Company Registration Number stored in the Registry’s records. This dummy BRN serves as the Unique Business Identifier (UBI) for these entities.
The public can find the BRN associated with a company/entity using its previous CR No., and vice versa, through the “Quick Search > CR No. / BRN Mapping” tool on the Registry’s e-Services Portal.
Where is the BRN used?
- The BRN serves as the identifier in communications with government departments and businesses.
- After the implementation of the UBI, all specified forms and documents filed with the Registry must use the BRN.
- The Electronic Search Services of the Registry utilizes the BRN as the primary number for searching and identifying companies or entities.
What are the benefits of having a BRN?
A BRN can be useful for business advancement. With your BRN, you can:
- Ensure adherence to tax regulations: The BRN serves as a tax identification number, used for filing various tax forms and conducting audits to review a business’s financial records.
- Optimize operational efficiency: As an identifier, the BRN enables quicker recognition by government departments and other entities, thereby enhancing business operations. It can also allow businesses to streamline such processes as tax compliance, licensing, or permit acquisition.
- Simplify financial transactions: The BRN is pivotal in facilitating precise and efficient financial transactions as a tax identification number. It can also: act as a routing transit number for banks, thereby ensuring accurate currency transfers; and improving security during transactions.
- Reduce possible errors: errors caused by the use of different identifiers in identifying the same entity.
In conclusion, the Business Registration Number (BRN) is essential for regulatory compliance and operational efficiency in Hong Kong. It serves as a crucial identifier in dealings with government agencies, financial institutions, and in business transactions. Understanding the use of the BRN is key for businesses aiming to thrive and expand in Hong Kong’s competitive market.
