Hong Kong Branch Vs. Hong Kong Representative office

Hong Kong branch of foreign companies

Branch office in Hong Kong is a legal entity registered with the Companies Registry. If a foreign company establishes a place of business in Hong Kong, it must register with the Companies Registry as a ‘Registered Non-Hong Kong Company’ within one month of establishment.

A Branch offices is not a separate legal entity from the parent and the parent company will be liable for the debts of its branch and required to file its accounts on the public record.

Hong Kong representative office

A representative officce cannot engage in profit making activities and is not treated as a legal entity. It is commonly use if a foreign company wishes to explore the Hong Kong market before making larger investment. Usually, a representative office has to restrict itself to promotion and liaison activities, undertaking market research and co-coordinating activities on behalf of the parent company. If the representative office decides to enter into a transaction which creates a legal obligation, it must change the business to a limited company or branch office.

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