#

Ease of Doing Business in

Hong Kong SAR, China

Hong Kong SAR, China Download Profile (1728.6KB, pdf)
Region East Asia & Pacific
Income Category High income
Population 7,305,700
GNI Per Capita (US$) 41,000
City covered Hong Kong

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 4 5 up
1
84.21 83.77 down
0.44
Starting a Business 3 4 up
1
98.20 98.12 up
0.08
Dealing with Construction Permits 5 5
-
84.82 84.78 up
0.04
Getting Electricity 3 5 up
2
99.02 94.74 up
4.28
Registering Property 61 60 down
1
69.79 69.78 up
0.01
Getting Credit 20 19 down
1
75.00 75.00
-
Protecting Minority Investors 3 3
-
80.00 80.00
-
Paying Taxes 3 3
-
98.69 98.69
-
Trading across Borders 42 42
-
88.94 88.94
-
Enforcing Contracts 21 21
-
72.57 72.57
-
Resolving Insolvency 28 27 down
1
75.06 75.06
-

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

5

DB 2016 Rank:

5

Change in Rank:

0

DB 2017 DTF (% points):

84.82

DB 2016 DTF (% points):

84.78

Change in DTF (% points):

up0.04

STANDARDIZED WAREHOUSE
Estimated value of warehouse HKD 16,713,973
City Hong Kong
Indicator Hong Kong SAR, China East Asia & Pacific OECD high income
Procedures (number) info_outline 11 15.0 12.1
Time (days) info_outline 72 134.1 152.1
Cost (% of warehouse value) info_outline 0.7 2.1 1.6
Building quality control index (0-15) info_outline 12 8.7 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain approval by submitting applications to the One Stop Center

    Agency: Hong Kong One Stop Center (OSC)

    BuildCo must submit the following documents for approval:
    • Building plans (Forms BA5, BD24)
    • General building plans
    • Spread footing plans
    • Hoarding plans
    • Site formation plans
    • Fire service installation plan (Form FSI/314)
    • Drainage plan

    In December 2008 a One Stop Center was established for Warehouse Construction Permits under the administration of the Efficiency Unit (EU) for receiving all relevant building license applications to 6 government departments and 2 private utilities (i.e. telephone line and electricity supply) and coordinating their joint inspections for two-storey warehouse projects.

    Property developers can use Form OSC-1 to submit to the One Stop Centre which combines all applications relating to building plans approval and consent for commencement of building works from Buildings Department, technical audit of water supply connection works and issue of water supply certificate by Water Supplies Department, and road excavation permit from both the Police and Highways Department. This new arrangement simplifies the submission process by combing the following procedures:
    (i) Obtain building plans approval, HKD 38,360.
    (ii) Apply and pay for technical audit of water supply connection works and submit application for issue of water supply certificate, HKD 17,319.
    (iii) Apply, pay and receive road excavation work permission from Highways Department, HKD 2,120.
    (iv) Notify and obtain approval from Police Department
    (v) Obtain building consent from Building Department

    45 days HKD 57,799
    * 2

    Hire an external supervising engineer to conduct inspections during construction

    Agency: Authorised person (AP), registered structural engineer (RSE) and registered geotechnical engineer (RGE)

    BuildCo has to hire external engineers (i.e., an authorized person (AP), registered structural engineer (RSE) and registered geotechnical engineer (RGE) registered under the building law) to conduct inspections according to the schedule of inspections specified in a statutory supervision plan. Supervision plan is prepared by the designers and the contractor which sets out the plan of safety management of the construction works prepared in accordance with a technical memorandum issued under the building law.

    The cost estimate for hiring an independent third-party engineer to conduct inspections for a 2-story, 1300 sq. meters warehouse which has a 7-month construction period would be HKD 40,000 to HKD 60,000.

    1 day HKD 50,000
    3

    Receive inspection by the Building Department on the site formation

    Agency: Buildings Department and Geotechnical Engineering Office of Civil Engineering Development Department

    The Building Department will conduct approximately three scheduled inspections (i.e., one inspection at the site formation stage, one at foundation stage and one inspection at superstructure construction stage) and several unscheduled surprise inspections at various stages of construction.

    1 day no charge
    4

    Request and receive inspection of foundation strata

    Agency: Buildings Department

    At the approval stage for building foundation plans, the Buildings Department normally imposes some requirements and conditions for the construction of the foundation to ensure that the approved plans and the required standards are complied with. Upon the completion of the foundation, Form BA 14 and as-built foundation records must be submitted to notify the Buildings Department that the foundation work has been completed. The form must be approved by the Buildings Department before the next stage of construction can begin. The construction site is inspected within 1 day of the notification.

    2 days no charge
    5

    Receive inspection by the Building Department on the superstructure construction

    Agency: Buildings Department and Geotechnical Engineering Office of Civil Engineering Development Department

    1 day no charge
    6

    Receive an unscheduled inspection by the Building Department - I

    Agency: Buildings Department and Geotechnical Engineering Office of Civil Engineering Development Department

    1 day no charge
    7

    Receive an unscheduled inspection by the Building Department - II

    Agency: Buildings Department and Geotechnical Engineering Office of Civil Engineering Development Department

    1 day no charge
    8

    Submit notification of project completion and relevant applications

    Agency: Hong Kong One Stop Center (OSC)

    Upon completion of construction, the following applications/notifications can be submitted in one go to the One Stop Centre for referral:

    (a) Application to the Drainage Services Department for technical audit for drainage connection works (cost: HKD 4,380)
    (b) Application to the Fire Services Department for issue of Fire Services Certificate (F.S. 172) (cost: HKD 4,130)
    (c) Application to the Buildings Department for Occupation Permit (free of charge);
    (d) Application to the Lands Department for issue of Certificate of Compliance (free of charge);
    (e) Notification to Water Supplies Department for completion of plumbing works via the Composite Form (free of charge)
    (f) Application for a joint inspection, if preferred (cost: nil).

    The following certificates are obtained through the One Stop Centre after the final inspection:

    (a) Fire Services Certificate (F.S. 172);
    (b) Occupation Permit;
    (c) Certificate of Compliance; and
    (d) Water Supply Certificate.

    1 day HKD 8,510
    9

    Obtain relevant certificates through the One Stop Center

    Agency: Hong Kong One Stop Center

    18 days no charge
    10

    Receive joint and final inspection of relevant licensing authorities coordinated by the One Stop Center

    Agency: Hong Kong One Stop Center (OSC)

    1 day no charge
    11

    Obtain water connection

    Agency: Hong Kong Water Supplies Department (WSD)

    The application for water connection is done earlier when applying and paying for technical audit of water supply connection works. The inspection for water connection is conducted in the procedure "Receive joint and final inspection of relevant licensing authorities coordinated by the One Stop Center". Water connection is obtained after the joint inspection.

    1 day no charge

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 12.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge; In official gazette. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer; Private firm. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer; Inspections by external engineer or firm; Unscheduled inspections; Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Yes, in-house engineer submits report for final inspection; Yes, external engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 2.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Professional in charge of the supervision; Construction company. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance ; Insurance is commonly taken in practice. 1.0
    Professional certifications index (0-4) 2.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Being a registered architect or engineer; Passing a certification exam. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; Being a registered architect or engineer; Passing a certification exam. 0.0