Waiver
of Business Registration Fees for One Year
(from 1 April 2012 to 31 March 2013)
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The Financial Secretary proposed
to waive the business registration fees for one year,
starting from 1 April 2012. The Government will introduce
the relevant budget legislation into the Legislative
Council as soon as possible to effect the proposal.
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| Implementation
Details of the Waiver of Business Registration Fees |
| 1. |
In respect of local
companies registered under the One-stop company incorporation
and business registration regime ("One-stop Registration"),
the fees payable under section 5A(1)(a) will be reduced
by a sum of $2,000 if the related incorporation applications
are made within the period from 1 April 2012 to 31 March
2013 ("Waiver Period"). For other cases, the fees payable
in respect of business registration certificates and
branch registration certificates with commencement date
falling within the Waiver Period will be reduced by
a sum of $2,000 and $73 respectively. |
| 2. |
Businesses are still
required to pay the levy for the Protection of Wages
on Insolvency Fund. |
| 3. |
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| Concessionary
Refund of Registration Fees Paid |
| 4. |
The proposal only relates
to the waiver of one year registration fees for the
incorporation applications made under the One-stop Registration
within the Waiver Period or, in other cases, new certificates
or renewal certificates with commencement date falling
within the Waiver Period. It does not provide for the
refund of fees paid in respect of the Waiver Period. |
| 5. |
In order that the waiver
can also benefit those businesses that have paid the
registration fees for the Waiver Period but are not
required to renew their certificates in such period,
concessionary refunds of the relevant amount of business
registration fees paid will be allowed to them, upon
applications. They include the following:- |
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(a) |
Businesses or branches, which hold
a 3-year registration certificate with a commencement
date before 1 April 2012 and an expiry date on or after
31 March 2013; |
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(b) |
Ceased businesses or branches,
which last hold a 1-year registration certificate with
a commencement date between 1 August 2011 and 31 March
2012; |
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(c) |
Ceased businesses or branches,
which last hold a 3-year registration certificate with
an expiry date between 1 April 2012 and 31 March 2013;
and |
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(d) |
Local companies registered
under the One-stop Registration, which make incorporation
applications between 1 August 2011 and 31 March 2012
and hold a 1-year or 3-year registration certificate
with a commencement date between 1 April 2012 and 31
March 2013. |
| 6. |
The relevant amount
of the concessionary refund is the amount of business
registration fees paid on a pro-rata basis, in respect
of the number of days in the Waiver Period (see item
1 above) which are covered by the business registration
certificate in question. The IRD will announce the application
and refund procedures after the relevant budget legislation
is passed by the Legislative Council. |
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FAQ |
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Q1: |
Do
I need to pay the levy for the Protection of Wages on
Insolvency Fund for the Waiver Period? |
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A1: |
Yes, the
levy for the Protection of Wages on Insolvency Fund
will continue to be payable. |
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Q2: |
Can a company incorporated or registered under the Companies Ordinance apply for concessionary refund if it has ceased business within the Waiver Period? |
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A2: |
Normally, a
company cannot claim refund of the business registration fee
paid if it ceases business during the period covered by the
business registration certificate, since under the Business
Registration Ordinance, a company incorporated or registered
under the Companies Ordinance is deemed to be a person carrying
on business notwithstanding its cessation of business.
However, under the concessionary refund
scheme, where the company is holding a 3-year certificate
with a commencement date before 1 April 2012 and an expiry
date on or after 31 March 2013, it can apply for concessionary
refund in respect of the Waiver Period, i.e. 1 April 2012
to 31 March 2013, WHETHER OR NOT the company has ceased business
during the Waiver Period.
Besides, local companies registered under
the One-stop Registration, which make incorporation applications
between 1 August 2011 and 31 March 2012 and hold a 1-year
or 3-year registration certificate with a commencement date
between 1 April 2012 and 31 March 2013, can also apply for
concessionary refund in respect of the Waiver Period, i.e.
1 April 2012 to 31 March 2013 (see Q5 below).
Please refer to A6 below on how the refund
will be calculated. |
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Q3: |
Can a business operator who registered his business in June 2011 with a 1-year business registration certificate and who is not required to renew the registration certificate because of cessation of business apply for concessionary refund? |
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A3: |
No. The business registration fee was already waived under the Revenue (Reduction of Business Registration Fees) Order 2010. |
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Q4: |
My company registered its business under the One-stop Registration in January 2012. How can it benefit from the proposed waiver? |
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A4: |
When the company
renews its registration certificate in January 2013, the fee
payable will be reduced by a sum of $2,000. |
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Q5: |
I will apply for company incorporation before the end of March 2012. If the commencement date of the 3-year business registration certificate of my company falls in April 2012, can I only pay the levy when making the application under the One-stop Registration? |
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A5: |
No. The proposed
waiver of one-year registration fees applies to the related
company incorporation applications which are made under One-stop
Registration within the period from 1 April 2012 to 31 March
2013. You must settle the full amount of $6,550.
After the relevant budget legislation is
passed by the Legislative Council, your company may apply
for concessionary refund of the business registration fee
paid in respect of the period from the commencement date of
the certificate to 31 March 2013. Please refer to A6 below
on how the refund will be calculated. |
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Q6: |
How is the amount of concessionary refund going to be calculated? |
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A6: |
The amount to be refunded will be calculated by reference to the number of days in the validity period of the certificate held by the business, the number of such days within the Waiver Period (i.e. 1 April 2012 to 31 March 2013) for which the concession applies, and the actual amount of fees paid on the certificate. The detailed calculations with examples will be announced after the relevant budget legislation is passed by the Legislative Council. |
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