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|
|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)|
|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)|