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BRN vs. CRN in Hong Kong: What’s the difference?

BRN vs. CRN in Hong Kong- What's the difference?
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Unsure whether your new business needs a BRN or CRN?

When registering a company in Hong Kong, things can seem quite complicated. 

You need to register with the Companies Registry to get limited company status and also register with the Business Registration Office to be able to do business in Hong Kong.

Therefore, your company will have two important numbers: Company Registration Number (CRN) and Business Registration Number (BRN). These two numbers are necessary later on every time you sign legal documents such as when opening a bank account, renting office space or signing a contract.

Nonetheless, the difference between the BRN and CRN often results in confusion. This article will explain everything you need to know about these two important numbers for every company based in Hong Kong.

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Difference between Business Registration and Company registration

In Hong Kong, it’s important to understand that business registration is different from company registration, including their purposes, requirements, and legal implications.

 

Business Registration

Company Registration

Requirement

Mandatory registration for tax purposes

Optional formation of a separate legal entity

Authority

Business Registration Office under Inland Revenue Department

Companies Registry under the Companies Ordinance

Purpose

Obtain Business Registration Certificate (BRC)

Form a separate legal entity with limited liability

Types of Entities

Applies to all types of businesses (sole proprietorships, partnerships, companies)

Applies only to companies (e.g., private limited companies)

Legal Status

Business remains an individual or partnership

Company becomes a separate legal entity

Liability

Owners personally liable for business debts

Limited liability protects owners’ personal assets

Registration Timeline

Must be completed within one month of business commencement

Can be done at any time when forming a company

Documentation Required

Basic business information and fee

Articles of Association, memorandum, and other incorporation documents

Compliance Requirements

Annual renewal of Business Registration Certificate

Annual filing of documents and compliance with Companies Ordinance

Registration Number

Business Registration Number (BRN)

Certificate of Incorporation Number (CRN)

RELATED ARTICLE

Business Registration Certificate in Hong Kong: Explained

What is BRN in Hong Kong?

Business registration involves registering a business with the Business Registration Office under the Inland Revenue Department. It is mandatory for every business operating in Hong Kong to register with the Business Registration Office within one month of commencement of business.

The purpose of is to obtain a Business Registration Certificate (BRC), which serves as proof that the business has registered with the government for tax purposes.

BRN is the 8-digit sequence at the front of your Business Registration Certificate number (e.g. 22222222-XXX-XX-XX-X). It is important to note that all the numerals of the BR number are used as an identifier equivalent to the tax identification number for entities.

Business registration is required for all types of businesses, including sole proprietorships, partnerships, and companies. Every business operating in Hong Kong requires a Hong Kong BRN.

What is CRN in Hong Kong?

Company registration, on the other hand, specifically refers to the process of incorporating a company with the Companies Registry under the Companies Ordinance.

Company registration is optional and is only necessary if a business owner wants to operate their business as a separate legal entity, such as a private limited company.

The CRN is issued automatically by the Companies Registry at the time of company incorporation or registration. It serves as a reference number for the company’s official records and is used in various administrative and regulatory processes, such as business transactions, legal documentation, and compliance with regulatory requirements. It helps to distinguish one company from another and is an essential reference in various business dealings and legal proceedings.

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In the Certificate of Incorporation issued by the Companies Registry of Hong Kong, the CRN (Company Registration Number) is typically located at the top of the document. It is usually displayed prominently along with other essential company details such as the company name, date of incorporation, and registered office address. The CRN serves as a unique identifier for the company and is used in various official and regulatory processes.

What is the difference between BRN and CRN in Hong Kong?

 

BRN (Business Registration Number)

CRN (Company Registration Number)

Usage

Identifier for business registration

Identifier for company registration

Issuing Authority

Business Registration Office

Companies Registry

Purpose

Used for business registration purposes

Used for company registration purposes

Composition

Derived from the Business Registration Certificate number

Assigned by the Companies Registry upon registration

Usage

Identifies business entities for government and business transactions

Identifies registered companies for legal and administrative purposes

Role in UBI System

Forms part of the Unique Business Identifier (UBI)

Replaced by the UBI system introduced by the Companies Registry

Introduction of UBI (Unique Business Identifier) in Hong Kong

As of December 27, 2023, the Hong Kong Companies Registry has launched a new system called Unique Business Identifier (UBI). The BRN which consists of the initial 8 digits of the Business Registration Certificate number, given by the Business Registration Office, is used as the UBI for companies/entities.

Does UBI replace CRN?

Yes, in Hong Kong, the Unique Business Identifier (UBI) system introduced by the Companies Registry does replace the Company Registration Number (CRN) for entities under its administration. The UBI is derived from the Business Registration Number (BRN) assigned by the Business Registration Office. Therefore, while the CRN was previously used as a unique identifier for companies, it is now effectively replaced by the UBI, which incorporates the BRN.

Where will UBI be used?

  • The BRN, now the UBI, can be used for communication with government agencies and businesses.
  • With the UBI in place, the BRN will be used for filing specific forms and documents with the Registry.
  • The BRN will serve as the primary identifier for searching and recognizing a company or entity through the Electronic Search Services of the Registry.
  • For companies established or registered on or after December 27, 2023, the BRN will also be displayed as the “No.” on the “Certificate of Incorporation” or “Certificate of Registration of Non-Hong Kong Company” issued by the Companies Registry.

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FAQs about BRN vs CRN

The BRN stands for Business Registration Number, assigned to entities upon business registration for tax purposes. The CRN, or Certificate of Registration Number, is issued upon company registration under the Companies Ordinance.

The BRN is obtained through business registration with the Business Registration Office, while the CRN is issued by the Companies Registry upon successful company incorporation.

No, they serve different purposes. The BRN is associated with business registration for tax purposes, while the CRN is specific to company registration, signifying the legal status of the entity.

Yes, if you operate a registered company, you’ll have both a BRN and CRN. The BRN is for tax registration, and the CRN identifies your company as a legal entity under the Companies Ordinance.

It’s essential to use the appropriate number for the intended purpose. While both numbers uniquely identify your business, the BRN is for tax-related matters, and the CRN is for legal and regulatory purposes related to company incorporation.

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Expertise in company incorporation, accounting, tax services, and compliance.
Trusted by over
450,000
businesses worldwide.
4.8/5
stars
on Google
from 4,100+ reviews.
satisfaction meter
95%
satisfaction rate from
16,000 surveyed clients.