Hong Kong Branch Vs. Hong Kong Representative office
Hong Kong Branch Vs. Hong Kong Representative office
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.
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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