What is a Branch Office and How to Register One in Hong Kong

Any foreign company keen to do business in Hong Kong can do it in a couple of ways.
One of the simplest modes available is setting up a branch office.
A branch office in Hong Kong is an easier way to enter the market and carry out the same business as the parent company.
Compared to a subsidiary, the registration procedure of a Hong Kong branch office is also straightforward.
Here is what you need to know to set up a branch office in Hong Kong.
Legally, a branch office functions as a satellite operation of a corporate entity. That’s why it is set up outside the jurisdiction of incorporation of the parent company.
As an extension of an existing business, it carries out identical business operations but in a different physical location. So, if your company is set up in Japan, you can establish a branch in Singapore.
But unlike a direct subsidiary company, a branch doesn’t have a separate legal identity.
Apart from setting up a subsidiary company or a branch office, foreign companies can also enter a new market through their representative office.
It is the preferred choice if the foreign company doesn’t want to execute any contracts in Hong Kong, but merely wants a way to look for potential customers and make them aware of its business.
Usually, larger corporations looking to gain a foothold in a new market opt for a branch over other modes of setting up a business.
Here are some common reasons why they do that:
To set up a branch office in HK, the foreign company must first register as a Non-Hong Kong company with the Companies Registry.
Here’s what you need to do:
Since a branch office is not a separate legal entity, it cannot have a different name.
The name of the branch office should be the same as its parent company. This is the name that appears on the incorporation certificate of the parent.
Companies Registry can reject a company name if it is already registered or if it is improper or misleading. Always perform a name search on the Companies Registry website before you apply.
Also, note that registering a company name with the Registry doesn’t grant the parent or the branch office any trademark or other intellectual property rights over the name.
At least one Hong Kong resident should act as the official representative to receive legal notices on behalf of the foreign company.
Companies can appoint either an individual or a company for this position.
A branch office should have a physical address in Hong Kong. It serves as the business address of the parent company in Hong Kong. Having a PO box address is insufficient to fulfill the requirement.
Typically, most non-Hong Kong companies use a professional firm’s address as the branch’s address. It is a temporary measure before the branch establishes an actual place of business.
The foreign company should appoint a local firm or individual as the company secretary of the branch to take care of various compliance requirements.
The following documents are mandatory for setting up a branch office:
Any document submitted should be certified to be true and be either in English or Mandarin.
Here are the benefits foreign investors enjoy when they opt for a branch office in Hong Kong:
A branch office has the same compliance obligations as local companies in Hong Kong.
Here are a few examples:
Hong Kong is an attractive destination for any business entity that wants to establish its presence in the Asia Pacific region.
Opting for a branch office in Hong Kong is an easy way to start business operations, if you don’t want to set up a subsidiary company right away.
However, you must carefully consider what’s best for your company, keeping in mind your business goals.
Not sure if a branch office is a safe bet for you? Get in touch with Air Corporate today to learn more about what you can do for your business.
We provide a range of secretarial services to Hong Kong foreign companies, including setting up a branch.
We also help set up a corporate bank account to support your banking needs. Partner with us to enjoy peace of mind when you do business in Hong Kong.
Registration takes approximately 2 weeks. The exact timeline varies on a case-to-case basis.
A branch office has no legal identity. As a result, the parent company has full liability for any actions taken or debts incurred by its Hong Kong branch. It is also legally bound by all contracts that its branch executes.
In the case of a subsidiary company, the parent doesn’t have any legal obligations. Since the subsidiary company maintains a distinct legal identity, none of its actions are legally binding on the parent.
Yes, as there are no exchange control regulations in Hong Kong. There are no restrictions on sending remittances abroad.
But any profit generated abroad remains subject to applicable tax regulations of the country that receives the money.
Imagine if you could hit the pause button on your business operations and wait for a better time to restart? […]
In today’s age, it is nearly impossible to build a business without relying on custom software solutions. Software that is […]
A business registration certificate is critical for anyone who wants to do business in Hong Kong. But navigating the process […]