Establishing a Hong Kong Representative Office: Key Details

A non-Hong Kong company seeking to promote its business and engage with customers in Hong Kong can establish a Representative Office, similar to setting up a branch. This involves obtaining a business registration certificate.

Key Facts:

• A Representative Office has no legal recognition and the parent company assumes implicit liability for its actions.
• Ideally, the office’s name should match that of the overseas parent company. If the name is in use in Hong Kong, an alternate name is required.
• The Representative Office is limited to liaison, promotional, and market research activities. Profit-generating activities require a different business structure.
• Staff members from the parent company typically manage the office, with the option to hire local support staff.
• No registered capital is required.
• Representative Offices are not registered with the Companies Registry and are exempt from filing or accounting requirements.
• They do not generate income and are not liable for tax returns, but must obtain a Business Registration Certificate.
• Considered a temporary administrative setup to assess business viability in Hong Kong.

Registration Process:

• The application for a business registration certificate should specify the office as a “representative/liaison office” and include the company’s certificate of incorporation.
• Initial profits tax return may be filed with a simple statement of nil profits. Further tax exemptions are possible if the office’s activities remain restricted to promotional and liaison work.

Upon receiving the Business Registration Certificate from the Inland Revenue Department, a corporate bank account can be opened with major banks in Hong Kong.

For personalized advice, Mayon’s Hong Kong office is available to assist in specific cases.

Please reach out to us: sales@mayon.hk