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 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

 

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