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Frequently Asked Questions
If you have any questions about licensing or corporate services, please feel free to ask us!
Why are Guangdong, Hong Kong, and Macau license plates so popular?
With the growing economic and cultural exchanges between Guangdong, Hong Kong, and Macao, demand for Hong Kong-Guangdong dual-region license plates has surged dramatically, driving up their prices. However, due to the high application threshold and premium cost of these plates, they remain accessible only to a select few successful and privileged individuals. Consequently, beyond facilitating cross-border travel, dual-registration license plates have evolved into both a status symbol and an investment opportunity.
Is the application process standard?
In accordance with the relevant national policies and regulations of China and Hong Kong vehicle license plate application methods, we assist you in handling vehicle license plate matters on both sides through legal and formal channels, in compliance with the law and procedures. Only through honest and law-abiding operation can we build a long-lasting business relationship.
Is it legal to hold license plates from both places?
License plates of the two places are in fact the assets of the corresponding companies, and the holding of such companies means the holding of license plates of the two places. The act of acquiring the assets of a company is lawful, so it is certainly lawful to transfer a company or acquire a company to obtain a dual-license plate.
Who is eligible to apply for a dual-registration vehicle license plate (Hong Kong, Macau, and Mainland residents), the respective application procedures, and the relevant qualifications required?
Residents of Hong Kong, Macao, or mainland China may register license plates from either region. The required documentation is straightforward: simply provide the applicant's identity card, proof of address, driver information, and vehicle details to complete the process.
Can I apply for two licenses under my own name?
Yes, you can, but the application requirement for individual names is limited to specific groups such as NPC deputies, CPPCC members, or philanthropists. Other individuals cannot apply under their personal names but must apply through a registered company.
Is there a limit on the number of indicators that can be licensed each year?
The indicators for licensing at different BCPs are limited each year and are subject to the policy regime of that year.
What are the requirements for driving a vehicle with license plates from these two countries?
A cross-boundary vehicle with a dual-zone license plate must be registered with a Hong Kong driver on the vehicle's endorsement card, but there are no restrictions on the driver's movement after crossing the border.
How much does the company spend annually on maintaining Hong Kong and China license plates and their indicators? Do I need to pay taxes every year?
The cost of maintaining a Hong Kong/Mainland vehicle license plate is relatively low. Excluding the cost of insurance and maintenance of the vehicle itself, the expenditure of the index company for maintaining the license alone is about RMB 10,000-odd per annum. The annual cost of maintaining the licensed company is approximately RMB 10,000-odd, excluding insurance and vehicle maintenance expenses. Furthermore, at present, companies are not required to pay tax for the annual renewal of all licenses in both jurisdictions. Therefore, there is no need for annual tax payments, and companies with zero returns can also renew their Hong Kong/Mainland licenses on a long-term basis.
Can mainlanders or non-permanent residents of Hong Kong drive Hong Kong vehicles with Guangdong-Z Hong Kong license plates to cross the border?
In principle, mainland residents are not permitted to drive Hong Kong vehicles with Guangdong Z Hong Kong license plates across the border. If you have special requirements, please contact our service staff.
Can I drive my Guangdong Z to other provinces in China outside of Guangdong, or even all over the country?
According to the current regulations of the Guangdong Public Security Bureau, the routes for Hong Kong/Mainland vehicles are province-wide, meaning they can be driven within Guangdong Province. However, since there is no border control between different provinces in China, there are still many instances of cross-province driving by Hong Kong/Mainland vehicles. This situation has not resulted in any adverse consequences regarding the use of Hong Kong/Mainland vehicle registration plates.
Is my China-Hong Kong license plate permanent?
China-Hong Kong Vehicle Registration Marks (VRMs) can be used for an extended period of time, and the VRM approval card requires annual renewal. Unless there is a policy change, this renewal process will continue indefinitely without risk as long as the VRMs are used normally, meaning they can be considered permanent.
After obtaining approval for the Hong Kong-Mainland vehicle license plate, do I still need to ensure that the foreign company I established in China maintains the same standard of annual tax payment to retain the Hong Kong-Mainland vehicle license plate?
There is no need, as per current government policy, for the Guangdong-Hong Kong vehicle license plate to require the company's tax payment. The company can still renew the license plate annually as usual.
Our foreign company invested and established in China has already met the eligibility criteria for applying for a Hong Kong-Mainland vehicle license plate in terms of the amount of tax paid in the previous year, and the total investment of the company also meets the criteria. Does this mean we should definitely be able to apply for it?
公司符合申請條件和完成申請是兩回事,目前能批復的批文數量較少,而排隊申請的公司較多,所以您自行申請基本無法申請成功。
After the closure of Shenzhen Bay, Sha Tau Kok, Liantang, and other border control points that are not open 24 hours a day, can my China-Hong Kong vehicle still travel between Hong Kong and the Mainland?
Under the current China-Hong Kong License Plate policy, following the closure of the designated checkpoint for Guangdong/Hong Kong License Plates, your vehicle may enter and exit Shenzhen through the Huanggang Control Point between 12:00 a.m. and 6:30 a.m. You may also travel between Hong Kong and Zhuhai via the Hong Kong-Zhuhai-Macao Bridge (HZMB) 24 hours a day.
Can I trade in my vehicle with a Hong Kong/China license plate?
Yes, first you need to apply for the return of your old vehicle to Hong Kong, and then you can register your new vehicle. We can provide one-stop service for all procedures related to China-Hong Kong license plates.
What is the maximum number of drivers that can be registered for a Hong Kong/Mainland vehicle?
According to the relevant policies and regulations on cross-boundary vehicles, a maximum of three drivers may be registered for a cross-boundary vehicle. Only these three registered drivers may operate the vehicle across the border. After crossing the border, any driver holding a valid local driving permit may operate the vehicle.
What are the opening hours of the most common land border crossings for Hong Kong/Mainland vehicles?
The Huanggang Boundary Control Point and the Hong Kong-Zhuhai-Macao Bridge Boundary Control Point operate 24 hours a day.
Shenzhen Bay Port is open from 6:00 AM to 12:00 AM.
Liantang Boundary Control Point clearance hours are from 7:00 AM to 10:00 PM.
The Sha Tau Kok Boundary Control Point is not yet open, and vehicles will be cleared at Liantang for the time being.
Can Mainland vehicles be licensed in both places?
Yes, but the FV/FU license plate is for Mainland vehicles, the Cantonese Z Hong Kong license plate for Hong Kong vehicles, and the Cantonese Z Macao license plate for Macau vehicles. However, the standard for applying for a new FV/FU license plate is high and the waiting time is long. Therefore, it is recommended to apply for a Guangdong Z Hong Kong license plate. Even if you purchase a car in Hong Kong, the cost will be significantly lower than applying for an FV/FU license plate.
What are the usual channels for applying for two licenses?
From company registration, qualification audit, information preparation, application submission, to obtaining approval from the Guangdong Public Security Bureau, as well as applying for Guangdong/Hong Kong vehicle license plates, it is a highly cumbersome process involving dozens of government departments in Guangdong and Hong Kong. In the market, we typically choose to rent or purchase.
What is the difference between Hong Kong residents and mainland Chinese in applying for a vehicle license plate?
The Government has stipulated that a Hong Kong or Macao resident must serve as the driver for customs clearance, so mainlanders need to find a Hong Kong driver. Hong Kong residents may serve as their own drivers.
What is the typical self-processing time and approval rate?
The standard application process, typically taking at least one to three years, involves submitting applications for both sides of the license plate. From preparing the documentation to submitting the application to the Guangdong Provincial Public Security Bureau for approval, the procedures for examining and registering Hong Kong-China license plates are highly cumbersome. The design of these procedures involves coordination among more than a dozen government departments in Guangdong and Hong Kong, each with interlocking responsibilities.
What is the price of a ready-made Hong Kong/Mainland vehicle license plate?
Typically, the cost of acquiring a company with a Hong Kong/China license plate in Shenzhen Bay exceeds HK$1,350,000–4,000,000, while the cost for a Hong Kong/China license plate at Huanggang Port is even higher. Applying for the license plate yourself can save you significant money. We welcome you to contact us to inquire about the price of Guangdong/Hong Kong license plates.
At present, what clearance points are available for new applications for Hong Kong/China license plates (Guangdong/Hong Kong license plates) or Hong Kong/Shenzhen license plates?
Currently, the cross-boundary control points open for applications for Hong Kong/Mainland vehicle licenses are Shenzhen Bay, Liantang, Sha Tau Kok, and the Hong Kong-Zhuhai-Macao Bridge control points.
Can I choose my Guangdong/Hong Kong license plate number?
If you are a new applicant for a Hong Kong/Mainland vehicle registration mark, you can choose one of the 50 randomly selected Hong Kong/Mainland vehicle registration marks as your Guangdong/Hong Kong vehicle registration mark on the spot when you submit your application at the Guangdong Public Security Bureau.
What's the deal with China-Hong Kong vehicle registration plates that don't have any internal commitment?
When applying for a Hong Kong/Mainland vehicle license plate, most applications are submitted only after the scale of operations of the mainland company invested by the foreigner has reached a certain level, so the application is typically made through this mainland contractor. However, since the information of this mainland contractor is not required for the annual renewal of the Hong Kong/Mainland Vehicle Registration Marks (VRM) or for changes in approvals (e.g., replacement of vehicles and drivers), even if the foreign-invested mainland company no longer exists, the existing policy on Hong Kong/Mainland Vehicle Registration Marks (VRM) will not affect the annual renewal of VRMs or the normal use of the VRMs. However, since this type of license plate lacks a link in the structure of the licensing company, compared to a complete corporate structure of a Hong Kong/Mainland vehicle license plate, some prudent people are concerned about the existence of a certain degree of policy risk, and therefore the value of the company will be relatively lower.
What is the annual tax for a Hong Kong company?
A Hong Kong company is only required to pay profits tax, which is calculated at a rate of 16.51% of its profits. If the company does not make any profit, it does not need to pay profits tax.
When is the fiscal year-end for a Hong Kong company?
It is customary to use either March 31 or December 31 of each year as the tax base period. The maximum base period for the first year of a Hong Kong company is 18 months.
Does Hong Kong need to impose tariffs on imports and exports?
There is no tariff on general import/export goods, except for tobacco, alcohol, and petroleum. However, imports and exports must be declared at customs.
How many types of taxes are there in Hong Kong?
There are three types of taxes in Hong Kong: Profits Tax, Salaries Tax, and Property Tax. Profits tax is 16.51% of a company's assessable profits; salaries tax is calculated on the basis of salary income at progressive rates, subject to a ceiling of 151% of total salary income; and property tax is calculated on the basis of the rental income of the property owned, less a standard deduction of 201% of total salary income. (2007/08: 16%) of total salary income; and Property Tax is calculated on the basis of rental income from property ownership, after deducting a standard allowance of 20% for repairs and expenses, and 15% (2007/08: 16%) of total salary income. Property Tax is calculated on the basis of rental income from property ownership after deducting the standard allowance of $201 (2007/08: $161) for repairs and expenses at $151 (2007/08: $161).
How is the accounting year (basis period) of Hong Kong formulated?
The Base Period is one of the following periods:
March 31 or December 31 is the more common year-end.
Other months may be designated as year-end.
What are the restrictions on the deduction of donations under the Hong Kong Inland Revenue Ordinance?
Deductions are allowed for donations to recognized charitable organizations. However, the total donation amount must not be less than 1% of assessable profits and must not exceed 35% of assessable profits (2007/08: 25%).
Can the profits of a Hong Kong company offset the losses incurred in the previous year?
Losses incurred in a taxable year may be carried forward and used to offset the company's profits in subsequent years.
What is Provisional Profits Tax?
Profits tax is levied on the actual profits for the year of assessment. Since the profits for a particular year can only be determined after the end of that year, the Inland Revenue Department (IRD) will levy provisional tax before the year ends. In the following year, once the profits for the year have been assessed, the amount of provisional tax paid can be applied toward the profits tax payable for that year.
Under what circumstances can a Hong Kong company be exempted from profits tax?
If a company's profits are not derived from Hong Kong, and the company has not yet established an office in Hong Kong or employed Hong Kong employees, the profits earned will be exempt from profits tax.
My Hong Kong company only has a bank account and receives invoices for other Chinese companies. Does this Hong Kong company need to handle accounting, auditing, and tax reporting?
Required. Since companies are formed for the purpose of making profits, even if a Hong Kong company can only perform the duties of collecting and paying on behalf of others, it is likewise regarded as an agency service business. This business derives its income from the service revenue generated by handling financial transactions, such as collection and payment, on behalf of others.
Our company has only opened accounts with foreign banks in mainland China, not in Hong Kong. Therefore, is it correct that our company is not required to file tax returns in Hong Kong?
No. Under Hong Kong law, all Hong Kong companies are required to declare their financial position to the Inland Revenue Department (IRD), regardless of whether their business activities occur in Hong Kong or elsewhere. If the company has no source of income in Hong Kong, it may apply to the Inland Revenue Department for tax exemption.
Still have more questions about licensing or business services in both places?
