Entity |
Subsidiary Company |
Branch Office (Non-Hong Kong Company) |
Representative Office |
| Entity Name |
Need not be the same as parent company |
Must be the same as parent company |
Must be the same as parent company |
| Business Activities Allowed |
Can conduct all business activities |
Must be the same business activities as the parent company |
Can only conduct market research or coordinating activities |
| Suitable For |
For local or foreign companies who wish to expand their operations in Hong Kong |
For foreign companies who wish to expand their operations in Hong Kong |
For foreign companies who wish to set up temporary vehicle in Hong Kong to conduct research and act as liaison office |
| Disadvantages |
Continuing compliance obligations e.g. financial reports, audit, AGMs, annual filings, etc. |
Continuing compliance obligations e.g. financial reports, audit, annual filings, etc. |
It is a temporary vehicle and cannot generate revenue |
| Ownership |
Can be 100% foreign or locally owned |
Just an extension of its parent company |
Just a temporary administrative arrangement |
| Separate Legal Entity |
Yes |
No |
No |
| Cap on Number of Members |
Yes, max 50 |
Not applicable |
Not applicable |
| Minimum Setting up Requirement |
One shareholder , which can be foreign or local individual or corporate shareholder AND must have at least one individual director |
Must have one Hong Kong resident agent |
No special requirements |
| Entity |
Subsidiary Company |
Branch Office (Non-Hong Kong Company) |
Representative Office |
| Limited Liability |
Yes |
No |
No |
| Audit Accounts |
Yes |
Yes, if parent’s accounts is also required to be audited |
No |
| Filing of Annual Return with CR |
Yes |
Yes |
No |
| Annual Filing |
Must file audited report of the Hong Kong subsidiary with IRD |
Must file branch office’s as well as parent company’s accounts or audited reports with IRD |
Not Applicable |
| Taxation |
Taxed as Hong Kong resident entity, local tax benefits eligible |
Taxed as Hong Kong resident entity, local tax benefits eligible |
Not Applicable |
| Cessation of Business upon Death of a Member |
No. Equity shares go on in perpetuity |
No |
Not Applicable |
| Validity Period |
Perpetually until deregistered |
Perpetually until deregistered |
No restrictions on the duration |
| Usual Registration Time |
Actual registration with CR and IRD can be done in 1 day. Preparation of incorporation documents will require about 1 day |
Actual registration with CR and IRD can be done within 2 to 4 weeks. Preparation of incorporation documents will require about 1 day |
Actual registration with IRD can be done in 1 day |
| Appointment of Officers |
Must appoint at least one individual director |
Must appoint one resident agent |
No special requirements |
| Governing Body |
CR & IRD |
CR & IRD |
CR & IRD |
| Bank Account |
Can open bank account in Hong Kong |
Can open bank account in Hong Kong |
Can open bank account in Hong Kong in the name of the foreign parent company |
| Registration Costs |
Hong Kong Company Registration Package #HKLLC05 |
Hong Kong Branch Office Registration Costs |
Hong Kong Representative Office Registration Costs |
