| Entity |
Subsidiary Company |
Foreign Company Branch Office |
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 indiviudal director |
Must have One Hong Kong Resident Agents |
Must appoint a Chief Representative who will relocate from parent company |
| Limited Liability |
Yes |
No |
No |
| Audit Accounts |
Yes |
Yes |
No |
| Filing of Accounts with CR and IRD |
Yes |
Yes |
No |
| Annual Filing |
Must file audited report of the Hong Kong subsidiary with IRD |
Must file branch office’s management accounts with IRD |
Not Applicable |
| Taxation |
Taxed as Hong Kong resident entity |
Taxed as non-resident entity |
Not Applicable |
| Cessation of Business upon Death of a Member / Partner |
No. Equity shares go on in perpetuity |
No |
Not Applicable |
| Validity Period |
Perpetually until deregistered |
Perpetually until deregistered |
This is a temporary Setup. It is intended not to last more than 3 years |
| Usual Registration Time |
Actual registration with CR can be less than 8 hours. Preparation of incorporation documents will require about 1 day. |
Actual registration with CR can be less than 8 hours. Preparation of incorporation documents will require about 1 day. |
3-5 days |
| Appointment of Officers |
Must appoint at least one individual director |
Must appoint one resident agent |
Must appoint a Chief Representative who will relocate from headquarters |
| Governing Body |
CR & IRD |
CR & IRD |
IRD |
| Bank Account |
Can open bank account in Hong Kong |
Can open bank account in Hong Kong |
Can open bank account in Hong Kong to run the operations. Must be funded by the parent company. |
