Business registration fees in Hong Kong will be waived for one year from August 1, 2009.

“Waiving of one-year business registration fees will help reduce the operating costs of businesses, particularly small and medium-sized enterprises, and provide timely relief to around 880,000 businesses,” a Hong Kong Special Administrative Region Government spokesman said.

Businesses applying for business registration or renewal of the business registration certificate with the commencement date falling within August 1, 2009, and July 31, 2010, will have their registration fees waived for one year.

The fees for business registration are levied at HK$2,000 (US$256.41) for a one-year certificate and HK$5,200 (US$666.66) for a three-year certificate. The proposed waiver will also apply to branch registration fees for which the fees for a one-year certificate and a three-year certificate are HK$73 (US$9.35) and HK$189 (US$24.23) respectively. Businesses are still required to pay the levy for the Protection of Wages on Insolvency Fund at HK$450 (US$57.69) per annum.

“In order that the business registration fee waiver can also benefit businesses which have paid the registration fees for the waiver period but are not required to renew their certificates in the waiver period, namely businesses holding three-year certificates with expiry dates on or after July 31, 2010; or businesses whose registration certificates expire in the waiver period but are not renewed because of cessation of business, concessionary refunds will be considered. These businesses can apply for a refund of the relevant amount of the registration fees paid for the waiver period,” the spokesman added.

Details of the proposal are available on the Inland Revenue Department’s website (www.ird.gov.hk).