Unique Business Identifier in HK
Introduction to the Unique Business Identifier (UBI) in Hong Kong
The Unique Business Identifier in Hong Kong, introduced on December 27, 2023, represents a significant regulatory update for Hong Kong businesses. Previously, companies were issued two separate identifiers: a company number from the Companies Registry and a Business Registration Number (BRN) from the Inland Revenue Department. With the implementation of the UBI, both departments now use a single identifier, streamlining the process for businesses and government agencies alike.
What is the Unique Business Identifier (UBI)?
The Unique Business Identifier in Hong Kong is derived from the first eight digits of a company’s Business Registration Number (BRN) displayed on the Business Registration Certificate issued by the Inland Revenue Department. By unifying the identification process, the UBI minimizes errors, reduces administrative burdens, and enhances communication between businesses and government departments.
Importance of the UBI in Hong Kong
Adopting a globally recognized standard like the UBI strengthens Hong Kong’s position as a financial hub by standardizing entity identification. This uniform approach benefits data exchange between agencies, preventing errors and enhancing the efficiency of regulatory processes.
UBI Implementation Phases in Hong Kong
Phase 1 (Implemented on November 1, 2021)
Scope: Limited to Limited Partnership Funds.
Phase 2 (Implemented on December 27, 2023)
Scope: Expanded to cover limited companies, open-ended fund companies, limited partnerships, and various other entities in Hong Kong.
Key Features of UBI Phase 2
- The Business Registration Number (BRN) is now recognized as the official registration number on essential documents, including Certificates of Incorporation (CI). Companies incorporated before the implementation of this change will not receive a new CI with their UBI. They should have received a notification letter from the Companies Registry about this change. Companies may also request a Letter of Confirmation from the Registry to serve as official evidence of their UBI.
- Companies must quote their BRN on all forms submitted to the Companies Registry.
- A CR No./BRN Mapping search tool on ICRIS allows for cross-referencing between BRNs and company registration numbers, further simplifying the regulatory process.
Why Entrepreneurs and Business Owners Should Take Note
Overall, for businesses considering incorporation or already operating in Hong Kong, the Unique Business Identifier (UBI) offers a unified system for entity identification. Indeed it reduces administrative complexities which improves overall efficiency when interacting with government agencies and other businesses.
If you need help navigating this change, contact us to learn more about how we can assist with compliance. Or if you have other questions, you can explore our blog for more insights.
