Support for SMEs

The Independent Commission Against Corruption (ICAC) enforces the Prevention of Bribery Ordinance (POBO) to uphold a fair and corruption-free society and safeguard the legitimate interests of different stakeholders. The POBO governs corruption in both the private and public sector. Click here to view the gist of the POBO.

Cross-boundary business operations may encounter corruption risks due to the differences in law, social environment, staff culture as well as problems relating to "remote management" of the business. Click here to learn the life hacks for cross-boundary business management.

The ICAC produces a full range of business ethics resources for various business targets. For instance, corporate leaders can make use of the Corporate Ethics Health Checklist to conduct a quick organisational check-up in corporate ethics and diagnose the areas for follow-up and improvement. Business practitioners may visit the Busted! 12 Myths about Corruption webpage to learn about some common corruption myths and mitigate corruption risks at work.

The ICAC provides free anti-corruption and ethics training to help business organisations cultivate an ethical culture. The Hong Kong Business Ethics Development Centre of the ICAC also launches an online training platform BEDC Channel to offer free thematic webinars regularly for business practitioners and professionals of different trades and sectors.

Some decisions in workplace are tough calls when involving ethical dilemmas. The Hong Kong Business Ethics Development Centre of the ICAC developed an “ETHICS PLUS” Model, which is an ethical decision making tool for business practitioners to resolve ethical dilemmas at work. Check out the dedicated website for more details.

The SMEs and Start-ups Corner is a one-stop online ethics resources portal developed by the Hong Kong Business Ethics Development Centre (HKBEDC) of the ICAC. The Corner introduces common corruption and malpractice risks in business operation and provides useful tips and resources for SME and start-up proprietors.

A "Starting-Up Right!" Anti-Corruption Information Kit for Start-ups & SMEs is also produced to highlight key points of the anti-corruption laws.  Interested parties may contact the HKBEDC to obtain the Information Kit.

Under the Import and Export (Registration) Regulations, Chapter 60E, Laws of Hong Kong, every person who imports into or exports from Hong Kong any article other than an exempted article is required to lodge with the Commissioner of Customs and Excise an accurate and complete import or export/re-export declaration within 14 days after the importation or exportation of the article. For details, please click here.

• specially designed to expedite the clearance of air cargo;
• direct system interface between Customs and cargo operators for the exchange of cargo data and Customs clearance instructions;
• service availability of 24 hours a day and 7 days a week; and
• covering clearance of all types of air cargoes.

For air, ocean and river cargoes, there is an Electronic System for Cargo Manifests (EMAN) which enables carriers to submit cargo manifests electronically to the Customs and Excise Department, the Census and Statistics Department and the Trade and Industry Department in one go.

There is also a Sea Cargo Appointment Website to enable consignees or their representatives to make cargo examination appointment with Customs for detained sea cargoes.

The Road Cargo System (ROCARS) commenced its mandatory implementation on 17 November 2011. It enables registered shippers or their authorized agents to submit advanced cargo information of road cargo by electronic means. Under the system, truck drivers can enjoy seamless and speedy Customs clearance when they convey road cargoes across land boundary control points.

The Customs and Excise Department of Hong Kong and the Mainland Customs have signed the Co-operation Arrangement on Customs Facilitation Measures for Wine Entering the Mainland through Hong Kong (Facilitation Measures) to facilitate wine business between Hong Kong and the Mainland. Under the Facilitation Measures, Hong Kong Registered Wine Exporters could lodge advance wine consignment information online to enjoy instant Customs clearance upon their consignments' arrival at all ports of the 42 Mainland Customs districts.  

To further enrich the facilitation services provided under the Economic Cooperation Framework Agreement (ECFA) and to facilitate more transhipment cargoes in Hong Kong to be qualified for preferential tariff, the Customs and Excise Department has launched the Free Trade Agreement Transhipment Facilitation Scheme (FTA Scheme) since 20 December 2015. This voluntary scheme provides traders with Customs supervision service and issues Certificate of Non-manipulation to certify transhipment cargoes that have not been undergone any further processing during their stay in Hong Kong.  

The Hong Kong Authorized Economic Operator (HKAEO) Programme launched in April 2012, is administered by the Customs and Excise Department under an open, free and voluntary certification regime. In compliance with World Customs Organization's SAFE Framework of Standards to Secure and Facilitate Global Trade, it aims to enhance international supply chain security by strengthening the Customs-to-Business partnership.

To assist SMEs to join the Programme, there are two tiers of HKAEO status, which help upgrade their supply chain security management.

All local stakeholders engaging in the international supply chain activities are eligible to apply for the Programme. They can enjoy relevant Customs facilitation and benefits after being accreditation.

The Kimberley Process Certification Scheme (the KPCS) for rough diamonds has been developed by the Kimberley Process, an international negotiating forum that seeks to stop trading in "conflict diamonds" from fuelling armed conflicts, activities of rebel movements and illicit proliferation of armament. The KPCS implemented in HKSAR comprises a registration system for rough diamond traders and a certification system for import/export of rough diamonds. The KPCS is administered by the Trade and Industry Department and enforced by the Customs & Excise Department.  

No person shall manufacture pre-recorded or blank optical discs in except with a valid licence issued under section 3 of the Prevention of Copyright Piracy Ordinance, Chapter 544, Laws of Hong Kong. It is also stipulated under section 4 of the Ordinance that no licensee shall manufacture optical discs in any place other than a licensed premises.

Under sections 6C and 6D of the Import and Export Ordinance, Chapter 60, Laws of Hong Kong, any persons, who import or export Optical Disc Mastering and Replication Equipment (ODMRE), are also required to apply for import or export licence.

The Customs & Excise Department is responsible for issuing and endorsing the Import and Export Licence, Licence for the Manufacture of Optical Discs/Stampers, and Transhipment Notification for ODMRE.

Prohibited articles are goods the import, export or transit of which are prohibited or controlled under the provisions of the Import and Export Ordinance, Chapter 60, Laws of Hong Kong, or any other laws of the HKSAR.

Any persons importing or exporting such prohibited articles must apply for licences, permits or certificates from the Government Departments concerned in advance and are subject to the conditions imposed thereof. For details, please click here.  

The Customs and Excise Department is responsible for protection and collection of revenue on four types of dutiable commodities which are liquors, tobacco, hydrocarbon oil and methyl alcohol irrespective of whether they are imported or locally manufactured under the Dutiable Commodities Ordinance, Chapter 109, Laws of Hong Kong.

The website of Dutiable Commodities System (DCS) receives and processes licence applications submitted by users through electronic means and introduces the permit application method to users.

In accordance with the Motor Vehicles (First Registration Tax) Ordinance, Chapter 330, Laws of Hong Kong, any persons who carry on business of importing motor vehicles for use in Hong Kong, and/or distributing or retailing motor vehicles by sale for use in Hong Kong should register as importers/distributors with the Customs and Excise Department within 30 days of the commencement of their business. For the details of registration as importers/distributors, please click here.  

The Import and Export Ordinance, Chapter 60, Laws of Hong Kong provides the legal basis for implementing strategic trade control in Hong Kong. The Ordinance stipulates that no person shall import or export any article specified in the Schedules to the Import and Export (Strategic Commodities) Regulations except under and in accordance with a licence issued by the Director-General of Trade and Industry. 

The e-Sea Customs Clearance Scheme (the e-SCC Scheme) aims to provide an e-channel for sea freight forwarders and logistics companies to lodge advance house bill of lading information to Customs, which simplifies customs clearance procedures and achieves resources saving and efficiency enhancement for customs, carriers and forwarders.  

Trade Single Window is a one-stop electronic platform for lodging Business-to-Government (B2G) trade documents to facilitate the trading community to meet the import and export regulatory requirements of Hong Kong. In this regard, the Office of Trade Single Window Operation has been setup within the Customs & Excise Department providing the trade and logistics industries with supporting services. The office is also responsible for the day-to-day maintenance, operation and promotion of the Trade Single Window.

Trade Single Window will be implemented in three phases. Phases 1 and 2 have been launched.  

The Hong Kong Export Credit Insurance Corporation (HKECIC) was established in 1966 under the Hong Kong Export Credit Insurance Corporation Ordinance, Chapter 1115, Laws of Hong Kong. Through the provision of export credit insurance services, the HKECIC protects Hong Kong exporters who trade on credit terms with overseas buyers against non-payment risks and helps them conduct export business in a prudent manner. HKECIC provides tailor-made facilities to cater for different needs of SME, micro-business and start-up exporters.

To assist exporters in exploring export trade markets with confidence, the  Hong Kong Export Credit Insurance Corporation (HKECIC) has launched various measures to support exporters, in particular SMEs. Examples of such measures include permanently granting cross the board payment term of 120 days, 20% of premium discount for holders of "Small Business Policy", extending free pre-shipment cover for holders of the "Small Business Policy" to 30 June 2025 and extending the 15% premium discount for the "Online Micro-Business Policy" to 30 June 2026. For details, please refer to relevant press releases on 20 June 2023 and 14 June 2024. 

The Hong Kong Export Credit Insurance Corporation (HKECIC) launched the Flexible Indemnity Ratio Arrangement on 28 September 2022 to provide enhanced coverage under different risk situations, with a view to allowing greater flexibility for exporters to secure orders from overseas buyers. Under the Arrangement, HKECIC will take into account policyholders' needs and consider providing an automatic uplift for credit limits of or below HK$5 million that were not fully approved to a maximum of HK$12.5 million, if needed. The indemnity ratio will be correspondingly adjusted from 90% to 60% the lowest. No additional premium would be required.

The Intellectual Property Department has launched the Intellectual Property (IP) Manager Scheme PLUS, which provides more comprehensive and in-depth IP training courses to assist Hong Kong enterprises, especially SMEs to build up their IP manpower capacity and to grasp the opportunities brought by IP trading. Enterprises registered in Hong Kong can join the Scheme for free. Participating enterprises can get priority in registration and special offers for their staff to join the IP Training Programme.

The Intellectual Property Department organises the Intellectual Property (IP) Training Programme, providing training courses which are designed to cater for specific duties and career development needs of IP Managers and help establish their expertise and skills. The courses will enable them to enhance awareness of IP protection and fully exploit the creative potential of an enterprise, proactively protect an enterprise’s IP from infringement, and liberate the value of an enterprise’s IP assets for trading or seeking investment.  

The Intellectual Property Department, with support from the Law Society of Hong Kong, provides free one-on-one Intellectual Property (IP) Consultation Service for Hong Kong SMEs with a view to assisting them to raise their awareness of IP and to develop effective IP management and commercialisation strategies.

A 45-minute face-to-face Consultation Service will be delivered by practising solicitors of the Law Society of Hong Kong. Advisory areas cover IP registration, IP management, IP licensing and IP due diligence.

To encourage the industrial and R&D sectors, creative industries and IP users to engage in more IP trading activities, the Government has implemented the "Patent Box" Tax Incentive.  The tax rate for assessable profits from eligible IP income derived from eligible IPs (i.e. patents, plant variety rights and copyright subsisting in software) has been reduced from 16.5% to 5%.

The Government protects employees’ rights and benefits as well as occupational safety and health through an extensive programme of labour legislation. The Employment Ordinance, Chapter 57, Laws of Hong Kong, provides the framework for a comprehensive code of employment. It governs the payment of wages, the termination of employment contracts, the operation of employment agencies, etc. The law provides eligible employees with various benefits and protection such as rest days, paid statutory holidays, paid annual leave, sickness allowance, paid paternity leave, maternity protection and employment protection.

The Labour Department provides free round-the-clock employment and recruitment services to job-seekers and employers through the Interactive Employment Service website and mobile application.

Under the Mandatory Provident Fund (MPF) System, employees and self-employed persons (SEPs) aged 18 to 64 are, unless exempted, required to join an MPF scheme. The MPF System is employment-based. An employer must provide 5% of an employee’s relevant income (RI) as mandatory contributions for the employee, subject to a maximum RI level. Employees have to make the same amount of contributions for themselves unless their RIs are below the minimum level. SEPs must also contribute 5% of their RIs, subject to the minimum and maximum levels.

The Mandatory Provident Fund Schemes Authority, established under the Mandatory Provident Fund Schemes Ordinance, regulates the MPF System and ensures compliance with the law to protect the interests of scheme members.

The Government has announced that the abolition of using the accrued benefits of employers' mandatory contributions under the Mandatory Provident Fund (MPF) System to offset severance payment (SP) and long service payment (LSP) (offsetting arrangement) will be implemented on 1 May 2025. The Labour Department has set up a thematic website to provide information about the abolition of offsetting arrangement and Government Subsidy Scheme. The website also provides a calculating tool, "EasyCal", as well as examples, to help employers and employees calculate the amount of SP/LSP and the Government subsidy after the abolition of offsetting arrangement.

To ensure the safety of employees, smooth operation of establishments and maintaining good labour-management relations, employers should consult employees and make prior work arrangements in times of adverse weather and "extreme conditions", including arrangement on reporting for duty, release from work, resumption of work and remote work (if applicable), etc. The Labour Department publishes the Code of Practice in Times of Adverse Weather and "Extreme Conditions" (COP) and provides reference guidelines for employers to make appropriate work arrangements according to the business nature, operational needs and urgency of service of their establishments. The COP also sets out the statutory liabilities of employers in relevant situations under the labour legislation such as Employment Ordinance, Employees' Compensation Ordinance and the Occupational Safety and Health Ordinance, etc.

Hong Kong Accreditation Service (HKAS) provides a wide range of accreditation services to conformity assessment bodies through three accreditation schemes, namely, the Hong Kong Laboratory Accreditation Scheme (HOKLAS); the Hong Kong Certification Body Accreditation Scheme (HKCAS); and the Hong Kong Inspection Body Accreditation Scheme (HKIAS).  

HKAS has published a directory of accredited organsiations at its website facilitating users of testing, certification and inspection service to select the services provided by these accredited organisations to support their business.

The Quality Services Division of the Innovation and Technology Commission promotes general awareness towards the importance and benefits of standards in underpinning the development of technology and products, and dissemination of the latest standards related information so as to support cross-border trade. In addition to standards sales and provision of standards information, the Quality Services Division also encourages interested parties to take part in international standardization activities.

The Inland Revenue Department (IRD) issued employer's returns, i.e. Employer's Return of Remuneration and Pensions (Form BIR56A) for the year ended 31 March 2025 on 1 April 2025. Employers are required to complete and file the returns, together with the completed Form IR56B for reporting remuneration paid to employees and pension paid, to the IRD within one month.

Employers can file the employer's returns online by using "iAM Smart+" or eTAX account. To tie in with employers in preparing early, the IR56 Forms Preparation Tool can be used to prepare the data file of annual Form IR56B starting from 1 March each year. Upon receipt of the Form BIR56A, employers can upload the IR56B data file to the IRD via the Online Mode or the Mixed Mode submission. Employers adopting the Mixed Mode submission, after uploading of data file(s), are only required to submit the duly signed paper form BIR56A and the duly signed Cover Page (i.e. the first page) of paper Control List generated from the system to complete the submission process.

Please visit the IRD website: https://www.ird.gov.hk/eng/tax/err.htm for details.

The Inland Revenue Department (IRD) issued 2024/25 Profits Tax Returns to corporations and partnership businesses on 1 April 2025.

To keep pace with the development in international tax administration and information technology, the IRD is actively promoting tax digitalisation. Taxpayers are encouraged to file electronically their Profit Tax Returns together with the supporting documents (including financial statements and tax computations) in iXBRL format on a voluntary basis.

To facilitate taxpayers in preparing the required iXBRL data files, the IRD is providing the IRD Taxonomy Package (the Taxonomy) and the IRD iXBRL Data Preparation Tools (including the Template Tool and Tagging Tool, collectively known as the Tools), which are available for download from the IRD website free of charge. The Taxonomy and the Tools have been updated and enhanced in 2024-2025. The major enhanced features include:

• enhancing the English Tagging Tool (Windows Version) to accept the import of financial statements in Microsoft Excel format; and
• enriching the selection of currency types to facilitate taxpayers in generating the iXBRL data files for financial statements and tax computations denominated in a more variety of currencies.

More details on electronic filing of Profits Tax Returns and iXBRL filing can be found on the IRD's webpages at www.ird.gov.hk/e_epf and www.ird.gov.hk/e_ixbrl respectively. For enquiries in relation to the iXBRL filing requirements and the use of the Tools, you may contact the IRD at ixbrl_reporting@ird.gov.hk, or access e-Appointment to book a specific timeslot to make enquiries via phone.

The IRD will launch three interconnected portals, namely Individual Tax Portal, Business Tax Portal (BTP) and Tax Representative Portal (TRP), in July 2025 to provide electronic services including enhanced electronic filing services, block extension service and other electronic services for individuals, businesses and tax representatives. The BTP and TRP will be pre-launched for businesses and tax representatives to register their dedicated accounts starting from late April 2025. Details of the BTP and TRP will be announced on the IRD's website.

The IRD also aims at implementing full adoption of electronic Block Extension Scheme starting from April 2026.  It follows that tax representatives are required to submit electronically their block extension applications or notifications through the block extension service under the TRP in respect of their clients' Profits Tax Returns with effect from the year of assessment 2025/26. Tax representatives are encouraged to lodge block extension applications or notifications electronically in 2024-2025 so as to enhance the efficiency, accuracy and reliability of block extension requests. More details in relation to the Block Extension Scheme can be found on the IRD's webpage on Block Extension Scheme for Tax Representatives.