Business license for a trading company

As mentioned above, counting on the type of products that the person intends to export or import, a real and valid trading business license of Hong Kong must be obtained. This license would be acquired from the acceptable government departments in Hong Kong. the products that need a license for the import or export in Hong Kong has been shared in details below:

For a business that conducts import or export of textiles, which also includes the export of the non-Hong Kong origin textiles, the person opening the business would wish to issue a legitimate export or import business license for the trading company by the Director-General of Trade and Industry.

There are situations where a person could be specifically exempted from this obligation. Also, it's to be noted that the licensing requirements vary for the non-sensitive markets and therefore the sensitive markets, that have exports to and imports from China and therefore the exports to the USA.

Even though Hong Kong features a trade anchorage, some specific products are subjected to regulation. And for the export and import of those regulated products, the person would wish to issue the trading business license in Hong Kong by the Strategic Trade Controls Branch of the Trade and Industry Department.

Also, it must be noted that the products which are being transshipped or re-exported also are subjected to equivalent licensing obligations. Nevertheless, regulated products that are in transit via Hong Kong, are ordinarily not obligated to be registered by a license. The strategic products include high speed and high-density integrated circuits, nuclear materials, sophisticated communication systems, high-performance computers, high precision machine tools, explosives, arms, and ammunition.

Issued by the Director-General of Trade and Industry, a legitimate Kimberley Process Certificates (Import) and Kimberley Process Certificates (Import) is required for the import or export of rough diamonds for the person meaning to start this business.

Under the subsidiary ordinances of the Reserved Commodities Ordinance, rice is registered as a reserved product because it may be a staple food in Hong Kong. Hence, if an individual wants to start out a business that indulges within the import and export of rice into and from Hong Kong, they might need a business license for the trading company under the Trade and Industry Department’s Rice Control Unit.

For the export and import of radio transmitting equipment in Hong Kong, a legitimate import or export trading business license of Hong Kong is required to be issued by the licensing unit, Office of the Telecommunications Authority.

A plant import license from the Plant and Pesticides Regulatory Division, Fisheries, Agriculture, and Conservation Department must be issued for the one that wants to import plants into Hong Kong. Nonetheless, the import of plants that are produced in China is excused from the licensing requirement. Also, the exemption is implemented for the import of cut flowers, vegetables, and fruits for consumption, from China and the other countries.

In case an individual wants to export or import pesticides, they might get to obtain a business license for the trading company from the Plant and Pesticides Regulatory Division, Fisheries, Agriculture, and Conservation Department.

For an individual who wants to start a business for the importing or exporting of scheduled chemicals, a legitimate import or export license is required. At present, chemicals that are subjected to regulation as per the Rotterdam Convention on the Prior Informed Consent Procedure or the Stockholm Convention on Persistent Organic Pollutants for Specific Hazardous Pesticides and Chemicals in International trade are the non-pesticide hazardous chemicals.

This includes the subsequent trading business license in Hong Kong:

• Import of milk or milk beverages: For importing milk or milk beverages, the person has to acquire previous permission from the middle for Food Safety, Food, and Environmental Hygiene Department. Also, it must be noted that the importation is permitted only from the authorized sources of manufacture.
• Importing frozen or chilled meat and poultry: Anyone who wants to enjoy the business of importing frozen or chilled meat and poultry would wish to use the trading business license of Hong Kong from the Food and Environmental Hygiene Department’s Import Registration Office.
• Importing frozen confectionery: For importing frozen confectionery, the person has to acquire previous permission from the middle for Food Safety, Food, and Environmental Hygiene Department. Also, it must be noted that the importation is permitted only from authorized sources of manufacture.

Import or Export license for pharmaceutical medicines, products, and dangerous drugs

A business license for a trading company must be applied to the business during which activities associated with the import or export pharmaceutical products, medicines that also includes the Chinese medicines, and specific dangerous drugs exist. The license would be issued by the Pharmaceuticals Import or Export Control Unit, Pharmaceutical Service, Department of Health.

The drugs that are categorized as dangerous drugs are sedatives, tranquilizers, hypnotics, and stimulants. The samples of these drugs are amphetamines, cocaine, cannabis, heroin, morphine, and opium. For importing or exporting Chinese herbal medicines, the permit has to be acquired from the Chinese Medical Council of Hong Kong.

In order to import any birds or animals into Hong Kong, an individual would wish to use the license from the Import and Export Division, Fisheries, Agriculture, and Conservation Department. For species, plants, or animals, the person would wish to urge the import or export trading business license of Hong Kong from the species Protection Division, Fisheries, Agriculture, and Conservation Department.

A valid license has to be obtained from the Customs and Excise Department of Hong Kong for the business that might enjoy the import or export of controlled chemicals.

A valid and genuine trading business license of Hong Kong has to be acquired for the business that intends to enjoy the import or export of dutiable goods from the Customs and Excise Department of Hong Kong. As per the Dutiable Commodities Ordinance, these products are:

• Methyl alcohol
• Hydrocarbon oils like light diesel fuel, kerosene, aircraft spirit, and motor spirit
• Tobacco products like smokeless tobacco products, cigars, cigarettes, etc.
• Alcoholic liquors like vodka, rum, gin, whiskey, brandy, etc.

As per the export and import obligations for the registration, everyone who exports or imports any products or articles, which excludes the exempt products, has to file an import or export declaration with the Commissioner of Customs and Excise.

This declaration is often submitted electronically through the service providers who are delegated by the government, and it's to be done 14 days after the importation or the exportation of the products. And this must plan the trading business license of Hong Kong that has been issued for the method to start.

The Hong Kong Customs and Excise Department would thoroughly inspect all the export or import-related documents to clear the imported products that are to be exported. When it's considered fit, the Customs Department may additionally initiate a physical examination of the cargo.

For clearing the imported dutiable goods, the one that is importing them has to submit a ‘Removal Permit’ to the Customs Department. Furthermore, the license holder has got to confine mind the subsequent things while handling the dutiable products:

• The quantity, packing, and outline of the products have to match what has been mentioned on the permit.
• The products need to be faraway from the releasing place then dispatched on to the designated receiving point.
• The products need to be removed within the authorized removal date and time.

Documents that are needed for the export or the import clearance are:

• Invoice or packing list.
• Airway bill, lading or the other related document.
• Manifests.
• Other records like the import or export license, removal permit, etc.

There aren’t much taxes applied on the products that are imported and exported during a Hong Kong business, but there are a couple of that are explained below for the afterward when an individual get the business license for a trading company and begins the operation of the business:

• Excise Duty: In Hong Kong, the excise duty is imposed on only four sorts of products which is regardless of the very fact that they're locally manufactured or imported. and therefore the products that are subjected to the excise duty are methanol, hydrocarbon oil, tobacco, and liquors.
  For the methanol, hydrocarbon oil, and therefore the tobacco, the excise duties are priced at fixed rates per unit quantity while the liquors are imposed with the duty by assessing the varied percentages supporting the alcoholic concentration of the liquor.
• VAT or GST: the great news here is that Hong Kong doesn't impose the products and services tax or the VAT.
• Customs Fees: Since Hong Kong may be a free port, there are not any customs fees imposed on the exports and therefore the imports.

The importance of trade finance has also grown alongside the expansion of international trade. And currently, many financing options are available for the businesses that are into trading in Hong Kong who have the trading business license of Hong Kong. The principal trade finance instruments that promote trade Hong Kong comprise:

• Export credit insurance: it's cargo insurance on the products that insure them against loss, theft, damage, and shields the exporter against non-payment by the customer. The credit insurance can help in financing because it is often utilized as collateral against which any bank can provide loans at a way lower rate thanks to the reduced risks.
  The ECIC also called the credit Insurance Corporation of Hong Kong issues insurance policies that are approved by any bank as valuable collateral for trade finance. There are about 70 banks in Hong Kong that have accepted the ECIC procedures because of the relevant collateral.
• Short-term finance: Most of the leading banks in Hong Kong render the short-term finance options for those companies who have a business license for a trading company and have started the corporate. a couple of the short financial commodities include import/export loans, revolving loans, overdraft, term loans, etc.
• Letters of Credit: the foremost widely utilized trade finance instrument is the letter of credit and is one of the foremost effective methods for any bank to finance the import or export trade. This is often primarily a letter that's issued by the bank of the customer and guarantees the payment to the exporter.

With the advantages of the trading business license of Hong Kong, Hong Kong-based trading firms can easily get profits from the trade agreement (FTA) that's between China and Hong Kong. The Closer Economic Partnership Arrangement (CEPA) of the mainland and Hong Kong may be a reciprocal trade agreement between the 2 countries wiped out in 2004 where Hong Kong made products gain advantageous passage to the Chinese market.

Hong Kong provides the perfect business environment for trading firms who have a Business License for the Trading company.