2026/27 HK Budget Playbook : Tax Breaks, Funding & Scaling Paths for Startups

Financial Secretary Paul Chan Mo‑po delivered the 2026/27 Hong Kong Budget Speech on 25 February under the theme “Driving High‑quality, Inclusive Growth with Innovation and Finance.” The speech signals a year of both opportunity and adjustment, with the upcoming Business Registration Fee increase and new HK Budget measures shaping the future landscape for entrepreneurs.

Together, these changes point to clear outcomes : evolving compliance costs that call for smarter financial planning, and broader fiscal initiatives designed to strengthen resilience, attract talent, and open fresh growth channels. Startups and SMEs must not only stay compliant but also position themselves strategically in a shifting environment.

Here are the latest updates you don’t want to miss:

• Plan Ahead for the BR Fee Hike
• 2026/27 HK Budget Fuels Startup Expansion
• Turning Policy Shifts into SME Edge

Key Takeaways

During the past two years, Hong Kong businesses benefited from a reduced Business Registration fee due to the exemption of the Protection of Wages on Insolvency Fund (PWIF) levy. This exemption will officially end on 31 March 2026, marking a significant shift for all enterprises.

Starting 1 April 2026, the new BR fee structure will apply to all Business Registration certificates :

• 1‑Year BR Certificate – HK$2,350 (HK$2,200 registration fee + HK$150 levy)
• 3‑Year BR Certificate – HK$6,170 (HK$5,720 registration fee + HK$450 levy)

This adjustment directly affects all corporations holding a Hong Kong BR certificate, including local and overseas limited companies, sole proprietorships, partnerships, and branch registrations.

SMEs and startups will notice this update as the most immediate and tangible change in the 2026/27 Budget, shaping how businesses plan their expenses and registrations in the coming year.

The new BR Fee hike signals decisive action. Businesses planning to establish in Hong Kong are strongly encouraged to complete their company setup before 31 March 2026 to benefit from the current reduced fee. Early registration ensures lower upfront costs, preserves capital for growth, and helps entrepreneurs avoid the higher compliance burden once the levy is reinstated.

The 2026/27 Hong Kong Budget reinforces the city’s commitment to a resilient and forward‑looking economy. Its four pillars – innovation and finance, inclusive growth, fiscal stability, and strategic measures – provide complementary support for entrepreneurs.

Key measures include:

• Tax relief – A 100% reduction in profits tax, salaries tax, and tax under personal assessment for the 2025/26 assessment year, capped at HK$3,000.
• BUD Fund Boost – An injection of HK$200 million into the BUD Fund, with the funding ceiling for each Easy BUD application raised to HK$150,000.
• SME export support – A pilot scheme by HKECIC will help SMEs expand into higher‑risk markets, while fees for food product export certificates issued by the Centre for Food Safety will be waived for two years.
• Property concessions – Rates concessions for domestic and non‑domestic properties for the first two quarters of 2026/27, subject to a HK$500 ceiling per quarter.

These measures provide additional relief and growth opportunities, but they remain secondary to the BR Fee update – the most immediate and impactful change for SMEs and startups in the year ahead.

The BR Fee increase and 2026/27 Budget measures reflect Hong Kong’s broader fiscal priorities – supporting SMEs with relief and financing while ensuring compliance remains sustainable. Among these initiatives, the BR Fee adjustment remains the most immediate change, shaping business decisions in the year ahead.

Entrepreneurs face a critical window before 31 March 2026. Completing business registration now secures the reduced BR fee and positions new ventures to enter Hong Kong’s market with stronger financial footing. Acting early is the simplest way to turn this policy shift into an advantage.

AsiaBC serves as a trusted advisor for foreign entrepreneurs, guiding them through Hong Kong’s evolving company setup and compliance requirements with clarity and confidence.

Ready to alter the course of your HK venture? Connect with us via WhatsApp +852 9578 0528 or email us at business@asiabc.com.hk to see how these changes will shape your business decisions this year.

銀行開戶準則银行开户准则銀行戶口银行户口Tags: bankingTags:Tags: hk 2026/27 budget, business registration fee, hk tax relief, startup funding, sme incentives