I. How is the HK$2,350 figure calculated?

According to the 2026/27 fiscal budget announced on February 25, 2026, Hong Kong'sThe exemption from business registration fees expires on March 31, 2026... Collection will resume effective April 1, 2026. The fee structure is as follows:

| Validity Period | Registration Fee | Fees | Total | |—|—|—|—| | 1 year | 2,200 HKD | 150 HKD | 2,350 Hong Kong dollars | | 3-year term | 5,720 HKD | 450 HKD | 6,170 Hong Kong dollars |

The term ”levy” here refers to the Protection of Wages on Insolvency Fund (PWIF) levy. Over the past two years, due to an exemption from this levy, employers actually paid HK$2,200 for a one-year term and HK$5,720 for a three-year term. Following the end of the exemption, the combined total of the two fees has returned to the aforementioned levels.

The scope of application covers all entities holding a Hong Kong Business Registration Certificate, including locally and overseas-registered limited liability companies, sole proprietorships, partnerships, and branch offices.

II. 1-Year or 3-Year Term

This is purely a matter of balancing cash flow and certainty.

In terms of amount, totaling HK$6,170 over three years, which works out to an average of approximately HK$2,057 per year—a savings of HK$880 compared to renewing for one year three times in a row (HK$7,050).

From a risk perspective... The downside of the 3-year term is its lack of flexibility. If a company ceases operations, relocates its registered office, or changes its business nature during the term, the fees already paid are generally non-refundable. For cross-border sellers who are still testing the waters and whose business models have not yet stabilized, the 1-year term is a safer choice.

Hands-on advice: Companies that have been in operation for at least two years, have a stable business model, and plan to operate in Hong Kong on a long-term basis may opt for a 3-year term; newly established companies, or those currently evaluating whether to maintain their Hong Kong entity, should start with a 1-year term for evaluation purposes.

It is important to note that,The fee adjustments are part of the budget proposal; their specific implementation will be subject to the fee schedule ultimately published by the tax authority.The

III. Don’t Just Focus on Registration Fees: Supporting Measures Are More Valuable

In the 2026–27 budget, the following items will actually have a greater impact on Hong Kong companies:

One-time capital gains tax relief. For the 2025/26 tax year, capital gains tax, payroll tax, and personal income tax are subject to the 100% relief,A maximum of 3,000 Hong Kong dollars per caseAccording to the budget estimates, approximately 171,000 businesses will benefit. This relief will be reflected in the final tax liability for the 2025/26 tax year; no separate application is required, butDoes not apply to provisional tax payments—Taxpayers are still required to pay their estimated taxes on time; any overpayment will be refunded.

The tax-exempt threshold has been raised. Starting with the 2026/27 tax year, the basic allowance and the single-parent allowance will be increased from HK$132,000 to HK$145,000, and the married person’s allowance will be increased from HK$264,000 to HK$290,000. and the child allowance will be raised from HK$130,000 to HK$140,000.

The BUD Special Fund is increasing its investment. The government has injected HK$200 million into the BUD Special Fund, and the funding cap for the ”Easy Application” program has been raised toHK$150,000 per case, and provide targeted funding for businesses to adopt AI.

The SME Financing Guarantee Program has been extended. ”The application period for 80 percent of the guarantee products has been extended to the end of March 2028,” and the "interest-only" arrangement has also been extended, with the total credit guarantee commitment increased by HK$20 billion.

Corporate Relocation and the "Half-Tax" Incentive. The new company relocation registration system has taken effect, and according to public information, a number of relocation applications have already been approved; the government will introduce a package of preferential policies to promote industry and investment, offering eligible enterprises a 50% tax reduction or a preferential tax rate of 5%.

IV. A Common Time Management Mistake

Many companies confuse the renewal of a business registration certificate with the annual review; in fact, these are two separate matters:

• Renewal of business registration certificates: Handle this with the tax office; it involves a business registration fee
• Company Annual Review (NAR1): File with the Company Registry; this involves the annual return

The deadlines for these two matters differ, as do the penalties for late compliance. We recommend creating an annual compliance calendar immediately after the closing date, highlighting the following four key dates: the expiration date of the Business Registration Certificate, the annual review date, the issuance date of the profits tax return, and the start date of the audit.

V. Dormant Companies Should Not Be Completely Neglected

Even if a company is not actively operating, it is still required to file annual tax returns. Companies that meet the Registry of Companies” definition of an ”inactive company” (no business activities, no bank transactions, and no changes in assets) may apply for an audit exemption and submit an inactivity report, butThe filing process itself cannot be omitted.The

It should also be noted that the Hong Kong Companies Ordinance requires that the annual financial statements of all Hong Kong limited liability companies be audited by a practicing accountant certified by the Hong Kong Institute of Certified Public Accountants (HKICPA). Audit opinions are classified into four categories: unqualified opinion, qualified opinion, adverse opinion, and disclaimer of opinion,The type of objection directly affects the tax authority’s assessment outcome.The

Qicaiying Group operates four licensed secretarial firms certified by the Hong Kong Companies Registry, as well as its own Hong Kong accounting firm. We offer one-stop services for business registration renewal, annual returns, auditing and tax filing, BUD special fund applications, and relocation planning. If you would like a template for an annual compliance calendar, please feel free to contact us.