HSIC Section S: Other Service Activities in Hong Kong — Classification Guide

HSIC Section S — Other Service Activities covers businesses that provide personal services, membership organisation services, and repair of personal and household goods. It spans divisions 94 to 96 in HSIC Version 2.0, published by the Census and Statistics Department (C&SD). If your business does not fit manufacturing, trade, hospitality, finance, or professional services, Section S is the most likely home for it.

What HSIC Section S actually covers

Section S contains three divisions and 11 groups in HSIC Version 2.0. The divisions are: 94 (activities of membership organisations), 95 (repair and maintenance of computers, personal and household goods), and 96 (other personal service activities). Each division breaks down into groups and classes that you select on your Business Registration application and, where relevant, on Profits Tax returns to the Inland Revenue Department (IRD).

Section S does not cover repair of motor vehicles (Section G), repair of industrial machinery (Section C), or veterinary activities (Section M). If your activity straddles two sections, the C&SD classification rules require you to select the code matching your principal activity — the activity generating the largest share of value added.

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Eligibility: who must classify under Section S

Any sole proprietorship, partnership, or company carrying on a business in Hong Kong must declare a business nature on its Business Registration application under the Business Registration Ordinance (Cap. 310). Section S applies to you if your principal activity is one of the following:

• Personal services — hairdressing, beauty treatment, laundry, dry cleaning, funeral services, wellness and spa services, tattoo and piercing, pet grooming (classified under HSIC 960900 unless a more specific class applies).
• Membership organisations — trade associations, professional bodies, trade unions, religious bodies, political organisations, and other membership bodies operated for the benefit of members.
• Repair services — repair of computers, consumer electronics, household appliances, footwear, leather goods, furniture, watches, and jewellery.

You do not classify under Section S if:

• You provide professional services requiring a practising certificate (accountancy, law, medicine) — these fall under Section M.
• You operate a restaurant, café, or bar — Section I.
• You provide education or training — Section P.
• You operate a gym or fitness centre — Section R (Sports activities and amusement and recreation activities).
• You provide IT consultancy or software development — Section J.

Under section 5(1) of the Business Registration Ordinance (Cap. 310), "every person carrying on any business in Hong Kong must apply for registration within one month of commencement."

If you are unsure whether your activity is Section S or another section, the C&SD publishes the full HSIC Version 2.0 classification with explanatory notes on its website. The IRD also publishes guidance on business nature codes used on Profits Tax returns.

Timelines: how long classification and registration take

Business registration with a Section S code takes one business day if you apply in person at the IRD Business Registration Office, or up to four working days if you apply by post. Online applications through GovHK are typically processed within one working day.

If you are incorporating a company under the Companies Ordinance (Cap. 622), the HSIC code is declared on the incorporation form (Form NNC1 for a private company limited by shares) submitted to the Companies Registry (CR). CR incorporation takes 24 hours after successful ID verification and name approval.

Cost metrics: exact fees for Section S businesses

The Business Registration Fee for a one-year certificate is HKD 2,200 (as at the most recent IRD fee schedule — check the latest guidance from the IRD, as fees are subject to annual adjustment in the Budget). A three-year certificate costs HKD 5,950. A branch registration certificate costs HKD 73 per year.

Fees are payable to the IRD. If you incorporate a company, the CR fee is separate and payable to the Companies Registry. Consult the latest fee schedules from the IRD and CR before budgeting, as both are revised periodically.

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Suitability: who Section S is for, and who it is not for

Section S is the correct classification for small owner-operated service businesses — a single-chair salon, a neighbourhood laundry, a computer repair shop, a trade association, or a funeral services provider. It is also correct for membership organisations of any size, including professional institutes and religious bodies, provided their principal activity is serving members rather than selling goods or services to the public.

Section S is not suitable for:

• Businesses with mixed activities where services are secondary. If you run a retail shop that also offers repairs, your principal activity is retail (Section G) unless repair revenue exceeds retail revenue.
• Franchise operators with multiple locations. These are still Section S if the principal activity is personal services, but the business registration must list each branch separately.
• Platform businesses. A booking platform connecting consumers to hairdressers is classified under Section J (Information and communication) if the platform's principal activity is operating a website, not providing the service itself.
• Holding companies. A company holding shares in Section S subsidiaries is classified under Section N (Administrative and support service activities) — specifically HSIC 642000 - Activities of holding companies.

If your turnover exceeds HKD 2 million per year and you operate as a sole proprietorship, consider incorporating under Cap. 622 — the Profits Tax rate for unincorporated businesses is 15% on assessable profits, versus 8.25% for the first HKD 2 million of assessable profits for corporations under the two-tiered Profits Tax rates. The classification under Section S does not change with incorporation.

How to select the correct Section S code

Follow these steps to select your HSIC code and complete your Business Registration application.

1. Identify your principal activity: List every revenue-generating activity and calculate the share of total revenue each contributes. The activity with the largest share is your principal activity.
2. Match to a division: Use the division descriptions above. If your activity is personal services, start at Division 96. If it is repair, start at Division 95. If it is a membership organisation, start at Division 94.
3. Match to a class: Use the four-digit HSIC class. For example, a hair salon is HSIC 960200 - Hairdressing and other beauty treatment; a computer repair shop is HSIC 951100 - Repair of computers and peripheral equipment.
4. Check the explanatory notes: The C&SD publishes explanatory notes for each class listing what is included and excluded. Confirm your activity is included.
5. Declare on the application: Enter the HSIC code and description on Form 1(a) (sole proprietorship) or Form 1(c) (partnership) submitted to the IRD, or on Form NNC1 submitted to the CR for a company.
6. Retain records: Keep a record of your classification rationale. The IRD may query your declared business nature during a Profits Tax review.

Common classification errors in Section S

The most frequent error is classifying a beauty salon that also sells retail products under Section S when retail revenue exceeds treatment revenue — in that case, Section G applies. The second most frequent error is classifying a gym or fitness studio under HSIC 960900 when it should be under Section R (HSIC 931100 - Operation of sports facilities or HSIC 931200 - Activities of sports clubs).

A third error is classifying a co-working space under Section S. Co-working space operation is classified under Section N — specifically HSIC 682000 - Real estate activities on a fee or contract basis, or HSIC 821100 - Combined office administrative service activities, depending on the service mix.

The C&SD states that the HSIC is "a statistical classification of economic activities" designed for "the collection and presentation of statistical data" — it is not a legal definition, and the IRD may apply its own business nature codes on tax returns.

FAQ

Q: Do I need an HSIC code to register a business in Hong Kong? A: Yes. The Business Registration application requires you to declare your business nature, which is expressed using an HSIC code. For companies, the HSIC code is declared on the incorporation form submitted to the CR. Q: Can I change my HSIC code after registration? A: Yes. If your principal activity changes, you should notify the IRD Business Registration Office in writing and, for companies, update your records with the CR. There is no fee for a change of business nature, but you must keep your registered particulars accurate. Q: Is a trade association classified under Section S? A: Yes. Trade associations, professional bodies, and trade unions are classified under Division 94 — for example, HSIC 941100 - Activities of business, employers and professional membership organisations. Q: Does Section S cover pet grooming? A: Pet grooming is classified under HSIC 960900 - Other personal service activities not elsewhere classified, unless the business also provides veterinary services, in which case Section M applies. Q: What is the difference between HSIC 960200 and HSIC 960900? A: HSIC 960200 covers hairdressing and other beauty treatment — hair salons, barbers, nail salons, and beauty parlours. HSIC 960900 is a residual class for personal services not elsewhere classified, such as tattoo studios, pet grooming, and wellness services.

Key authorities to consult

• Census and Statistics Department — HSIC Version 2.0 full classification and explanatory notes.
• Inland Revenue Department — Business Registration Ordinance (Cap. 310), fee schedules, and business nature codes for Profits Tax returns.
• Companies Registry — Companies Ordinance (Cap. 622), Form NNC1, and annual return requirements.
• GovHK — online Business Registration application.

-> Use the HSIC Code Finder at /hsic-finder to look up your specific code.