Hong Kong Standard Industrial Classification Code – All You Need to Know
Hong Kong is one of the most favorite locations to start a business which makes it a highly crowded business location. To simplify administration and management, it is important to have a classification system. A classification system allows you to manage various entities properly and reduces the possibility of mistakes. A classification system is of great importance in Hong Kong because of its diverse market. It has a wide range of businesses that operate in several fields and support the economy of Hong Kong.
Therefore, to classify the numerous businesses in Hong Kong, the Hong Kong Standard Industrial Classification (HSIC) code comes into effect. Its main purpose is to differentiate the businesses registered and operating in Hong Kong based on their activities. If you own a business or are planning to start a business in Hong Kong then this article is a must-read for you. In this article, we will be learning about HSIC code in detail, the importance of HSIC code, steps to find HSIC code and HSIC code examples. By the end of this article, all your questions about the HSIC code will be addressed.
What is the HSIC Code?
Hong Kong Standard Industrial Classification (HSIC) Code is a system which is used to classify the economic activities in Hong Kong. The economic activities of the businesses and organizations are classified based on the nature of the activity and its economic value. HSIC code is a standardized system of classification which differentiates a large number of sectors and industries in Hong Kong. The HSIC code helps in managing the statistical data of various industries in Hong Kong which helps the government analyze and make policies for the industries based on their economic activities and business trends.
The first version of the Hong Kong Standard Industrial Classification Code (HSIC V1.0) was modeled on the International Standard Industrial Classification (ISIC) Revision 2 which was introduced in the year 1990. It was further revised in the year 2001 and the HSIC V1.1 was introduced to the public. Hong Kong currently has HSIC V2.0 which was released in the year 2008. However, the use of HSIC V2.0 was started in the year 2009.
The current version of the HSIC code which is version 2.0 is based on the International Standard Industrial Classification (ISIC) of All Economic Activities Revision 4 which is developed by the United Nations Statistics Division. The earlier version of HSIC code had a 4-level hierarchical system which was modified to a 5-level hierarchical system in the HSIC code V2.0. At present, the 5-level hierarchical system has 21-top level groups that classify the numerous industries and sectors in Hong Kong.
Importance of HSIC Codes List
It is exceedingly essential to understand the importance of HSIC codes for businesses in Hong Kong. Understanding the HSIC codes can save you from making mistakes in the registration process and help you enjoy various government policies in Hong Kong. The importance of HSIC codes are listed below:
- Company Registration – HSIC codes are used in the registration process of a company. This allows the government to keep a precise record of the businesses and the nature of businesses operating in Hong Kong. Moreover, it helps in the classification of the primary economic activities of businesses which ensures accuracy in record keeping and policy making.
- Data Analysis – One of the most important reasons why HSIC codes are vital is their contribution to data analysis. HSIC codes provide a standardized framework for organizing and analyzing economic data in Hong Kong. Government agencies, researchers and data analysts analyze the economic data and produce different reports related to employment, profit, exports, production, trends and other factors.
- Government Policies – HSIC codes are extremely useful for the government to make policies for different industries and sectors in Hong Kong. Based on the economic data of HSIC codes, policymakers can make informed decisions and policies for the betterment of the industries. HSIC codes provide the government with information about the challenges and performance of various sectors which help them to make policies related to those sectors.
- Business Planning – HSIC codes play a vital role in business planning as they provide businesses with information about the trends and needs of the market. Businesses can use HSIC codes to strategize their operations and allocate their resources wisely. HSIC codes can also be effective in evaluating the risks of the market and capitalizing on the opportunities in the market.
How to Find Your HSIC Code?
You are required to follow a specific set of steps to find your HSIC code. These are explained below in detail.
1. Understand Your Business Activities
The first and foremost step to finding your HSIC code is to understand your business activities. The HSIC code for your business can be determined by the nature of your business activities and the operations you perform. Understanding your business activities includes specifying the products and services you offer, the procedures of your business and your business operations.
2. Consult the HSIC Code List
Different economic activities are categorized into different sections in the HSIC code list. You can access the HSIC code list through multiple government departments such as the Census and Statistics Department of Hong Kong. The HSIC code list classifies various economic activities based on the HSIC codes and defines the types of businesses and industries covered in each section.
3. Utilize Online Search Tools
You can also use several online search tools to find your HSIC code. The online search tools and databases provide you access to government websites and industry association websites which contain information about the HSIC codes for specific industries. You can enter the keyword of your economic activities on these websites to determine your HSIC code.
4. Seek Professional Guidance
To reduce the chances of any mistake or negligence, you can seek professional guidance. Having an industry expert by your side can help you find your HSIC code easily. As they have complete knowledge about the industries and sectors, they can provide you with the best advice related to your HSIC code.
HSIC Code Examples
This section of the article will focus on real-world examples of the HSIC codes for different businesses.
| Industry/ Sector | HSIC Code Range | Sub Categories(Examples) |
|---|---|---|
| Agriculture and Fishing | 011-031 | Farming, Fishing, Forestry |
| Mining and Quarrying | 051 - 099 | Quarrying, Oil |
| Manufacturing | 101-332 | Food Processing, Textile Manufacturing, Electronics |
| Electricity and Gas | 351-359 | Electricity Generation, Gas Distribution |
| Water Supply | 360-370 | Water Treatment, Water Distribution |
| Construction | 381-389 | Building Construction, Civil Engineering |
| Wholesale Trade | 401-450 | Wholesale of Agricultural Products, Machinery |
| Retail Trade | 451-478 | Clothing Retail, Electronics Retail |
| Transportation | 491-512 | Road Transport, Air Transport, Freight Transport |
| Accommodation | 521-530 | Hotels, Guesthouses, Serviced Apartments |
| Food and Beverage | 551-555 | Restaurants, Cafes, Beverage Manufacturing |
| Information and Communication | 581-620 | Telecommunications, Software Development, Publishing |
| Finance and Insurance | 641 - 662 | Banking, Insurance, Investment Services |
| Real Estate | 681 - 682 | Property Development, Real Estate Agencies |
| Professional Services | 701-750 | Legal Services, Accounting, Consulting |
| Administrative Services | 771 - 772 | Office Administrative Services, Human Resources |
| Education | 801 - 804 | Primary Education, Secondary Education |
| Health and Social Work | 851 - 853 | Hospitals, Nursing Homes, Social Work Services |
| Arts and Recreation | 900 - 932 | Museums, Sports Activities, Amusement Parks |
Get Started with Your Hong Kong Business
Understanding the Hong Kong Standard Industrial Classification (HSIC) code is important for anyone looking to start or manage a business in Hong Kong. Whether you need assistance with company formation, compliance, or day-to-day management, Startupr is here to help. With our comprehensive suite of services, we make navigating the complexities of the Hong Kong business environment seamless and efficient.
Trust Startupr to provide expert guidance and support, ensuring your business not only starts strong but thrives in this dynamic market. Contact us today to learn more about how we can assist you in achieving your business goals in Hong Kong.