Branch, Representative Office or Subsidiary in Hong Kong?

Representative office

• For liaison, market research and similar support only; it cannot carry on profit-making business.
• If it starts creating legal obligations, it must become a branch or a company.
• A non-Hong Kong corporation with a representative or liaison office in Hong Kong still needs business registration.

Branch (registered non-Hong Kong company)

• Not a separate legal entity. The parent is fully responsible for the branch's debts.
• Must register with the Companies Registry within one month of setting up a place of business in Hong Kong (Part 16 of Cap. 622) and keep up filing obligations. The Registry fee is HK$1,545 online or HK$1,720 on paper.
• Suits parents wanting to trade under their existing name and legal identity.

Subsidiary (local limited company)

• A separate Hong Kong legal person, so the parent's exposure is generally limited to its investment (unless it gives guarantees).
• Easier to bring in local partners or investors and often easier to open bank accounts for.
• Has its own director and secretary requirements.

Choosing Ask whether you need to trade or only to explore, whether you want liability ring-fenced, and whether the parent is willing to be directly liable and to disclose its accounts.