Notification of Commencement of Business and Change of Business Particulars to Inland Revenue Department
Have You Submitted Your Formal Notification Yet?
You will be required to submit a Notification of Commencement of Business and Change of Business Particulars to the Hong Kong Inland Revenue Department (IRD) of your business commencement or change of business details. The submission of the notification is part of the Company Secretary Services, hence is free.
All Hong Kong companies that are new or recently incorporated must submit a notification to the Commissioner. The notification needs to be in writing and contain the details the business. Details should include business name, nature of business and description, address and date of commencement. This applies to businesses who applied with the one-stop company and business registration service.
Factors That Determine Commencement Date in Hong Kong
The date of your commencement should be the date when your business starts to conduct the relevant business activities. Commencement dates will vary between companies. Factors that determine your commencement date in Hong Kong include the following:
- Paying rent
- Paying utilities
- Performing sale of goods
- Receiving and issuing of invoices
- Goods manufacturing for the company
- Transfer of assets
- Purchase of assets
- Receipt of business transactions
- Commencing business contracts
- Hiring and employing staff (including freelance employees)
- Salary payments
- Purchasing financial instruments
Notification must be submitted within one month from the date your business commences. Notification can be done via letter. Alternatively, you may complete the standard IRBR200 form.
Any change of business details must also be notified to the Commissioner. This needs to be done in writing within a month of the change. Changes can be submitted by completing the relevant forms. The forms can be found on the IRD website or through the Fax-A-Form service at 2598 6001.
Anyone who fails to comply with the notification requirements will be found guilty of committing an offence. The penalty is a fine of $5,000 and 1 year jail time.