I. The Need for Business Registration
Under Hong Kong's Business Registration Ordinance, engaging in profit-making activities in Hong Kong in any form (including but not limited to social networking platforms, self-built websites or communication software) is considered a commercial activity.
Of particular note:
Create a new specialized category of "e-commerce operators" to explicitly cover all types of online store formats
Practical advice: Even if you only receive orders through WhatsApp, you should register your business within one month of its commencement, provided that it meets the profitability requirements. Recent cases show that the tax office has started to check the business content of Instagram's time-limited news feeds as evidence.
Key details of tax treatment
Special attention should be paid to the tax reporting of online stores:
Calculation of Profits Tax
The standard tax rate is maintained at 16.5%.
Preferential tax rate of 8.25% for the first HK$2 million profit (subject to certain conditions)
Must distinguish between local and overseas transaction certificates
Documentation Requirements
✓ E-transaction records (with buyer's IP address) ✓ Cross-border logistics bills of lading ✓ Platform commission receipts
Mandatory filing of schedules using the e-Tax system from 2025 onwards
Common Misconception: Many store owners are under the misconception that PayPal income is automatically tax-deductible, but in fact, they need to apply for a "Certificate of Income from Non-Hong Kong Sources" on their own initiative.
Bank Account Management Practices
Three core considerations for opening a company account:
Regulatory Requirements
Business transactions exceeding HK$50,000 per month must be conducted using a company account.
Commercial use of personal accounts may trigger AMLO investigations
Compare Account Options
Virtual banking: fast account opening (1 working day), suitable for start-ups Traditional banking: comprehensive cross-border services, high reputation Digital wallet: low cost for small transactions, multi-currency support
List of Required Documents
Certified copy of Business Registration Certificate
Memorandum and Articles of Association
Original certificates of identity of directors and shareholders
Proof of address for the last three months (cell phone bills are not accepted)
No Physical Address Solutions
Residential Address Registration
Required: Certificate of Rates Payment + Landlord's Consent (to be certified by a solicitor)
Restriction: Cannot be used for import and export business registration
Provided by the licensed secretarial company
Includes: business address, mail forwarding, basic legal advice
You can also contact Wecorp to create helpers together.
What are the consequences of not submitting the business registration application on time?
In fact, proof of business registration will be required from time to time during the daily operation of a business. Therefore, since you intend to operate an online store, you should remember to apply for business registration in a timely manner. Therefore, since you intend to operate an online shop, you should remember to apply for business registration in a timely manner. If you do not submit the application for business registration in a timely manner, you have to bear the legal consequences:
Offenders are liable to a fine of $5,000 and imprisonment for one year.
Any person who registers a business more than 12 months after the commencement of the business shall pay.
(a) Business registration fee and levy for the year
(b) under section 7(3) of the Business Registration Ordinance in respect of business registration fees and levies for previous years.
Do I need to register to receive orders on social media platforms (e.g. IG, Little Red Book)?
As long as they meet the definition of "Continuous Profitable Behavior" (more than 5 orders per month or more than $8,000 in revenue), regardless of platform.
From 2025 onwards, live broadcasters will be required to mark their BR number on their profile.
How is the act of resale defined?
Professional buying (fixed supply chain + markup sales) = commercial behavior
Occasionally buying for a friend (at actual cost) = Not for Profit
Note: The use of "代购" as a promotional term is regarded as a commercial operation.
Can I use a P.O. Box for the address of the Registration Card?
New 2025 regulations prohibit mailbox-only numbers, but they are optional:
✓ Licensed Virtual Office (service contract required)
✓ Residential address (notarized copy of owner's consent required)
References：
- Companies Registry - Trust and Company Service Providers Registry for Trust and Company Service Providers
https://www.tcsp.cr.gov.hk/tcspls/search/public-search?k=ALL
