It is the most common types of company in Hong Kong. Companies incorporated in Hong Kong can be public or private and can be limited by shares or limited by guarantee.
Every company must have at least 1 registered shareholder and 1 individual director, who can be in any nationality. Each HK company must also appoint at least 1 company secretary who should be a resident of Hong Kong or a company incorporated in Hong Kong.
A representative office cannot engage in profit making activities and is not treated as a legal entity. Usually, a representative office has to restrict itself to promotion and liaison activities, undertaking market research and co-ordinating activities on behalf of the parent company. If the representative office decides to enter into a transaction which creates a legal obligation, it must change the business registration to a limited company or branch office.
Branch office in Hong Kong is a legal entity registered with the Companies Registry. If a foreign company which establishes a place of business in Hong Kong, must register with the Companies Registry as a "Non-Hong Kong Company" within one month of establishment.
Unlike a limited company, a branch office is not a seperate legal entity from the parent company and the parent company may be liable for the debts of its branch and required to file its accounts on the public record.
Talk to our consultant today for the details about setting up a company in Hong Kong.