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I plan to apply for a retail Chinese herbal medicines trader licence. How do its government fees differ from those for a western medicine licence?

A complete explanation of the regulatory basis, Drew Tang’s recommendations and risk alerts. The original material dates from 2025; read it alongside the latest official requirements.

Original guide, 2025 edition: These FAQs are provided for topic-based reference and have not all been individually checked against current rules. Please confirm fees, personnel, renewal, changes and product requirements against the professional in-depth guide for the relevant licence type and the official requirements in force at the time.

Drug Office, Department of Health Chinese Medicines Board

Q254 · Category F: Fees, Budget and Financial Planning (Q251-Q300)
Government fees for an application to retail Chinese herbal medicines differ from those for Western medicine licences. Applications are handled by the Chinese Medicines Board under the Chinese Medicine Council of Hong Kong (CMCHK). Specifically, the application fee for a Chinese herbal medicine retailer licence is HK$770, and the issue fee upon successful approval is HK$1,160. By comparison, the application and issue fees for a Wholesale Dealer Licence are HK$1,030 and HK$2,150 respectively. Although government fees alone make Chinese medicine licences appear slightly less expensive, this does not mean the overall start-up costs are lower; other investments remain the main expenses.

📘 Regulatory basis

The relevant fees are prescribed in the subsidiary legislation, the Chinese Medicines Regulations, under the Chinese Medicine Ordinance (Cap. 549 of the Laws of Hong Kong). The Regulations list the statutory fees for applications, renewals and other matters relating to the different Chinese medicine business licences, including retail, wholesale and manufacture.

📗 Drew Tang's recommendations

Although government fees vary, when preparing your budget you should focus on common major expenses such as shop rent, storage facilities that comply with the Hong Kong Chinese Materia Medica Standards, including protection against damp and insect infestation, staff training and the cost of engaging Chinese medicine professionals. These are the key factors determining your total investment.

📕 Risk notice

Do not underestimate the complexity and funding requirements of starting a Chinese herbal medicine retail business because government licence fees are low. Quality control, traceability management and storage conditions for Chinese herbal medicines are subject to stringent requirements. Insufficient investment in these areas may not only result in the licence application being rejected, but could also lead to severe legal penalties for selling substandard herbal medicines.

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