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Reduction of the Business Registration Levy

The Business Registration Ordinance (Amendment of Schedule 2) Order 2022 (Order) was gazetted on 10 June 2022 and introduced into the Legislative Council on 15 June 2022.

The Order seeks to reduce the rate of the business registration levy, which finances the Protection of Wages on Insolvency Fund (the Fund), from $250 per annum to $150 per annum with effect from 17 June 2022.  The new rate is applicable to (1) the incorporation submissions in relation to simultaneous business registration applications made on or after 17 June 2022 and (2) all other cases, if the commencement date of business or branch registration certificates is on or after 17 June 2022.

The Fund provides to employees whose employers become insolvent an ex gratia payment covering arrears of wages, wages in lieu of notice, severance payment, pay for untaken annual leave and pay for untaken statutory holidays.  It is financed by a levy per annum on each business registration or branch registration under the Business Registration Ordinance.

More information on the Protection of Wages on Insolvency Fund

Please click here to view the full text of the Business Registration Ordinance (Amendment of Schedule 2) Order 2022 published in the Government Gazette.

Please click here to view the Frequently Asked Questions with Answers for the Business Registration Ordinance (Amendment of Schedule 2) Order 2022 in the Inland Revenue Department’s website.

Enquiry telephone of Labour Department : 2717 1771 (the hotline is handled by “1823”)