How to Open a Restaurant in Hong Kong 2026: Licence Types, FEHD Process, Fees and Timeline

More than 12,000 general restaurant licences were in force in Hong Kong in recent years, and the city's food and beverage sector remains one of its most competitive launchpads for entrepreneurs (Environment and Ecology Bureau, Legislative Council reply, April 2026). Yet every year, first-time F&B owners lose months of rent and fit-out money because they signed a lease before understanding what the Food and Environmental Hygiene Department (FEHD) actually requires.

In this guide, you will learn how to open a restaurant in Hong Kong step by step: which company and licences you need, the difference between a general restaurant (GR) and light refreshment restaurant (LRR) licence, the FEHD application timeline, the fees involved, and the compliance obligations — from ventilation certificates to liquor licences — that catch most newcomers off guard.

Step 1: Set Up Your Business Vehicle First

Before applying for any licence, decide your business structure. Most restaurateurs in Hong Kong incorporate a limited company under the Companies Ordinance (Cap. 622) because it limits personal liability — important in an industry with lease guarantees, supplier credit and employment obligations.

Incorporation is fast and inexpensive. The Companies Registry issues an electronic Certificate of Incorporation for HK$1,720, usually within one hour for online applications (Companies Registry, cr.gov.hk). You then register the business with the Inland Revenue Department's Business Registration Office under the Business Registration Ordinance (Cap. 310); a one-year Business Registration Certificate costs HK$2,350 under the fee schedule effective from April 2025 (IRD, ird.gov.hk).

Registered office and licence applications

Your company needs a registered office address where government notices can be served. Many F&B startups use a virtual office or serviced office address for the corporate entity while the restaurant premises serves as the operating address — a structure that keeps correspondence, invoicing and licensing paperwork organised. Just note that the restaurant licence itself must be applied for in respect of the actual food premises address.

Step 2: Choose the Right Licence Type — GR vs LRR

Under the Food Business Regulation (Cap. 132X), any premises selling meals or unbottled non-alcoholic drinks for consumption on the premises must hold a restaurant licence from the FEHD. There are two main options, and choosing wrongly is the single most expensive mistake in the process.

• General Restaurant (GR) licence: full flexibility on cuisine and cooking methods, including stir-frying and deep-frying. Requires a full kitchen, a higher food-room-to-floor-area ratio under Schedule 5A of the Regulation, and full ventilation compliance.
• Light Refreshment Restaurant (LRR) licence: for applications received on or after 1 March 2023, cooking is limited to simple, low-fume methods — boiling, stewing, steaming, braising and simple frying. Deep frying, stir frying and cooking in the seating area (hot pot, teppanyaki, Korean BBQ) are not permitted (FEHD licensing FAQs, 2026).

The practical rule: a café, salad bar or dessert shop can usually work with an LRR; anything with a wok station or open flame grilling needs a GR.

Annual licence fees (by floor area)

FEHD licence fees scale with the size of your premises. For a premises of 100 m² or less, the annual fee is about HK$2,520 for a GR licence and about HK$1,810 for an LRR licence; for premises of 150–200 m², roughly HK$4,410 (GR) and HK$3,160 (LRR) per year (FEHD fee schedule, 2026). Licences may be issued for terms of up to three years, with the fee adjusted pro rata.

Step 3: Secure Premises That Can Actually Be Licensed

The FEHD cannot licence premises whose use does not permit catering. Before you sign any lease, verify three things:

• Land use and lease terms: check the Government lease (and any deed of restriction) allows restaurant use, and confirm the premises has a household or restaurant water supply and proper drainage.
• Building plans: no unauthorised building works; a licensed restaurant cannot operate in residential-use units — the FEHD confirms flatly that residential buildings cannot be used as restaurants.
• Exclusive control: you must produce documentary proof of sole control over the premises (a tenancy agreement or ownership document) before the FEHD will issue a letter of requirements.

Step 4: Prepare Plans and Submit the FEHD Application

Applications are submitted to the FEHD's licensing offices with scale layout plans (commonly 1:100) showing the kitchen, food rooms, seating, toilets, grease trap, exits and ventilation system. On acceptance, the FEHD refers the case simultaneously to the Buildings Department, the Fire Services Department and other relevant departments, then issues a consolidated letter of requirements once those departments give clearance (FEHD, Guide to Application for Restaurant Licence, fehd.gov.hk).

The four technical requirements almost every applicant must satisfy

1. Food room area ratio: under Schedule 5A of Cap. 132X, the kitchen and food preparation rooms must meet a minimum ratio to total floor area — stricter for GR than LRR.
2. Ventilation: if natural ventilation is insufficient (openable windows less than one-tenth of floor area), a mechanical ventilation and air conditioning system is required, delivering at least 17 m³ of fresh air per person per hour, with the kitchen ventilated separately. The Fire Services Department must issue a Certificate of Conformity (LC) for the ventilating system.
3. Fire safety: the Fire Services Department issues fire safety certificates for means of escape and fire service installations before the full licence can be granted.
4. Sanitary fitments and grease traps: toilets and washbasins must be provided in numbers proportional to seating capacity, and an effective grease trap installed before oily wastewater enters the drainage system.

Step 5: Use the Provisional Licence to Start Earning Sooner

Fit-outs take time, and rent does not wait. The FEHD therefore operates a provisional licensing system: once your premises satisfies all essential health, building and fire safety requirements, you can be issued a provisional restaurant licence, valid for a limited period, and legally open for business while the full licence is finalised. Once you report compliance with all requirements, the FEHD conducts its final verification inspection within 8 working days and approves the full licence within 7 working days of confirming compliance (FEHD licensing FAQs, 2026).

The Professional Certification System shortcut

Since 30 January 2024, the FEHD has extended its Professional Certification System (PCS) to general restaurant applications. Under PCS, an Authorised Person or Registered Structural Engineer certifies compliance with health requirements, and the FEHD can approve the full licence within 2 working days without a pre-issue site inspection, followed by an audit check afterwards (FEHD, 2026). For owners on a tight opening schedule, PCS can cut weeks from the critical path.

Step 6: Restricted Food Permits and the Liquor Licence

A restaurant licence alone does not cover everything you may want to sell:

• Restricted foods: items such as sushi and sashimi, raw oysters, frozen confections, non-bottled drinks and cut fruit require written permission or a permit under Schedule 2 of Cap. 132X. Many restaurants apply for a consolidated restricted food licence covering several categories at once.
• Alcohol: selling liquor for consumption on the premises requires a separate licence from the Liquor Licensing Board, with administrative support from the FEHD. The annual fee is about HK$1,990 for ordinary restaurant premises (about HK$3,940 where the premises is operated primarily as a bar), and licences are typically granted for a one-year term (Liquor Licensing Board application guide, fehd.gov.hk).

Step 7: Staffing Compliance — Insurance and MPF

Once you hire, two obligations apply from day one. Under the Employees' Compensation Ordinance (Cap. 282), you must hold employees' compensation insurance for every employee, including part-time staff — operating without it is a criminal offence. And under the Mandatory Provident Fund Schemes Ordinance (Cap. 485), you must enrol staff in an MPF scheme, contributing 5% of relevant income as the employer (capped at HK$1,500 per month), generally within the first 60 days of employment (MPFA, mpfa.org.hk).

Common Mistakes That Delay Restaurant Openings

• Signing the lease before checking use restrictions — the most costly error; some premises can never obtain a GR licence.
• Applying for an LRR when the menu needs a wok — you would have to submit a fresh GR application later.
• Skipping the grease trap or under-sizing ventilation — repeated inspection failures push your provisional licence, and your rent, out by months.
• Opening without any licence — operating a food business without a licence is an offence under section 31 of Cap. 132X, with fines and prosecution.

Key Takeaways

• Incorporate and complete business registration first (about HK$4,070 in government fees combined).
• Choose GR for full cooking flexibility; LRR is cheaper but limited to simple, low-fume cooking (since March 2023).
• Budget annual licence fees of roughly HK$1,810–HK$2,520 for premises up to 100 m², scaling with floor area.
• Use the provisional licence and the PCS route to open weeks earlier.
• Add restricted food permits and a Liquor Licensing Board licence if your menu requires them.
• Line up employees' compensation insurance and MPF before your first hire.

Let vOffice Handle the Setup While You Build the Menu

Licensing is only the first course. vOffice is a Hong Kong licensed TCSP service provider with over 23 years of experience in company registration and corporate services. We can incorporate your restaurant company, provide a prime Central business address, and manage your ongoing company secretary and compliance filings so you can focus on your kitchen and your customers. Talk to us at https://voffice.com.hk/contact-us, or ask our AI assistant at https://voffice.com.hk/ai-assistant for an instant answer to your setup questions.

About the Author

vOffice is a Hong Kong licensed TCSP (Trust or Company Service Provider) service provider with over 23 years of experience in company registration, corporate services and compliance support for local and overseas entrepreneurs. Our team has helped thousands of businesses establish and maintain their Hong Kong operations across industries including food and beverage, trading and professional services.

References

1. Food and Environmental Hygiene Department, Guide to Application for Licences, fehd.gov.hk (accessed October 2026).
2. FEHD, Frequently Asked Questions — Restaurant Licensing, fehd.gov.hk/english/licensing/QA_collated.html (accessed October 2026).
3. Food Business Regulation (Cap. 132X), Hong Kong e-Legislation, elegislation.gov.hk.
4. Companies Registry, Electronic Company Incorporation Services and Fees, cr.gov.hk (accessed October 2026).
5. Inland Revenue Department, Business Registration Fee Schedule, ird.gov.hk (accessed October 2026).
6. Liquor Licensing Board / FEHD, A Guide to Application for Liquor Licences and Club Liquor Licences, fehd.gov.hk (accessed October 2026).
7. Environment and Ecology Bureau, replies to Legislative Council questions on food business licences, eeb.gov.hk (April 2026).
8. Mandatory Provident Fund Schemes Authority, Employer's Guide to MPF, mpfa.org.hk (accessed October 2026).
9. Employees' Compensation Ordinance (Cap. 282), Hong Kong e-Legislation, elegislation.gov.hk.