![Asia Business Centre (Asia Business Centre (AsiaBC) [HK+SG Bank Account Opening / Company Formation / Company Secretary / Accounting & Tax])](data:image/svg+xml;nitro-empty-id=NjcxOjI3NTQ=-1;base64,PHN2ZyB2aWV3Qm94PSIwIDAgNzIwIDM2MCIgd2lkdGg9IjcyMCIgaGVpZ2h0PSIzNjAiIHhtbG5zPSJodHRwOi8vd3d3LnczLm9yZy8yMDAwL3N2ZyI+PC9zdmc+ "compare-hong-kong-branch-representative")
Once you decide to land in Hong Hong…
Almost every oversea entrepreneurs come up with the same question:
Should I setting up a branch office, subsidiary company, or representative office in Hong Kong?
We have an article to go through the major 4 types of business vehicles in Hong Kong including private company and representative office (Remarks: Branch office is not classified as a type of business vehicle because of its high dependency on a locally registered business vehicles).
For those who are already familiar with these 4 types of business vehicles, we create this quick facts for comparison of branch office, subsidiary company, and representative office for quick reference.
| Type of Entity | Representative Office | Company | Branch |
|---|---|---|---|
| Defination | Known as “Non-Hong Kong Company” – sole owned by a oversea body corporate (i.e. company). | “Private Company Limited by Shares” incorporated in Hong Kong, shareholding by oversea parent(s). | An additional “name” registered in Hong Kong for an existing Hong Kong registered business. |
| Naming Restriction | Must be the same as (highly related to) its oversea parent. | Same as normal Incorporation. | Same as normal Business Registration. |
| Separate Legal Entity | No | Yes | No |
| Limited Liability | No | Yes | No |
| Business Activities Restriction | Disallowed to handle and operate any capital intake and revenue generation | No restriction | Restricted to perform the same or similar business to its parent |
| Bank Accounts Opening | Yes (Funded by its parent company) | Yes | No |
| Best fit for | Only foreign companies who wish to setup short-term vehicle in Hong Kong. | Either local or foreign companies and individuals to setup a separate legal business entity in Hong Kong. | Existing Hong Kong registered business entities (i.e. including Hong Kong company) |
| Minimum member composition | One local agent (Hong Kong resident aged 18 or above) | One director (Must be a nature person who ages 18 or above) & One shareholder. The same nature person can take up both positions. Maximum 50 members. | Not Applicable. |
| Audit accounts | Yes | Yes | Yes (handled with the same account of its parent) |
| Annual return | Yes | Yes | Yes |
| Taxation | No (Revenue generation is strictly disallowed, no Profits Tax burden on the office is generated) | Yes | Yes (handled with the same account of its parent) |
| Cessation | Voluntary deregistation / deregistration of parent | Voluntary deregistration / strike off / dissolution | Voluntary deregistation / deregistration of parent |
| Governing authority | Companies Registry (CR) & Inland Revenue Department (IRD) | Companies Registry (CR) & Inland Revenue Department (IRD) | Companies Registry (CR). For the registration of parent: Companies Registry (CR) & Inland Revenue Department (IRD) |
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