Hong Kong Guide - Subsidiary vs. Branch Office vs. Representative Office in Hong Kong

A comparison of various entity types in Hong Kong, the pros and cons, set up requirements and more.

Comparison: Subsidiary vs. Branch Office vs. Representative Office in Hong Kong
	Subsidiary	Branch Office	Representative Office
Separate legal entity	Yes	No	No
Liability	Limited Liability	Extend to parent company	Extend to parent company
Entity Name	Can be the same or different from parent company	Must be the same as parent company	Must be the same as parent company
Allowed Activities	Can be the same or different from the parent company	Must be the same as the parent company	Can only conduct market research or coordinating activities. Not allowed to conduct business activities that yield profit.
Ownership	Can be 100% foreign or locally owned	An extension of the parent company only	A temporary administrative arrangement
Key Officer Appointment	A local Hong Kong resident is required to be appointed as a company secretary	A local Hong Kong resident is required to be appointed as an authorized representative	A local Hong Kong resident is required to be appointed as a chief officer
Timeframe for registration	4-7 working days	14 working days	1-2 working days
Audit requirements	Mandatory	Depends on the audit requirements of the parent company	Depends on the audit requirements of the parent company
Profits Tax Obligation	Applicable for Hong Kong-sourced profits	Applicable for Hong Kong-sourced profits	Not applicable as it cannot conduct any profit-generating activities