Opening a Branch Office in Hong Kong – Step by Step Guide
Do you want to open a business in the Asian Cities? Or perhaps you are looking for the place to expand your existing business globally. If things are going like this, ‘why don’t you choose Hong Kong for your business?’
Being a record- holder for the last two decades as the world’s freest economy, and a financial hub, Hong Kong can be an excellent choice for setting up the business. In fact, several global leaders in business and banking come with a multitude of benefits, like it’s rank above the USA, UK, and Japan as the least corrupt nation on the globe.
Moreover, setting up a business in Hong Kong is relatively quick, economical, and easy. As a foreigner, you can own 100% of your company in Hong Kong, and you may be sole director and shareholder. Attractively, Hong Kong is also a great gateway for establishing your business in China or other Asian nations.
The reasons are – its administration of provident economic policies, along with the provision of a secure and clear judiciary structure. And we bet that such an environment is ideal for entrepreneurial growth.
But you can’t deny the fact that in order to incorporate a business in a new jurisdiction, every business owner must need to require a critical analysis of the correct means and setup requirements to do so.
Branch Office in Hong Kong
If you really want to enjoy the maximum benefits of incorporating your business in Hong Kong as a foreigner, then the branch office can do excellent work for you. As a matter of fact, several foreigners want to launch a presence in HK, to sell to the Hong Kong market.
Being a lawful element enlisted with the Company Registry, the branch office is not considered to a separate legal entity. In fact, it acts as an extension of the foreign parent company it represents. Moreover, all the liabilities, debts, and profits incurred by the branch shall be accountable to the parent company.
Being the freest economy of the world and known to be the 4th easiest place to do business by the World Bank Report, Hong Kong is the best place to incorporate a business.
The reason is- the branch has a set of essential advantages but also some particularities that need to be taken into consideration.
But you can’t deny the fact that half-knowledge is also dangerous and it leads to nothing. So, it is always advisable to get proper knowledge about the business structure and the benefits of incorporating in that place.
So, if you are a serious foreign business owner who is willing to expand their activities in Hong Kong, then this article is for you.
Let’s dive into the article to get proper information-
Advantages & Disadvantages of Branch office in Hong Kong
Well, opening a branch office in HK offers a plethora of benefits of accounting and maintaining the operations to owners for expanding its company by just establishing a new brand name or outlets.
Merits of the Hong Kong Branch Office
- To extend your present of the business portfolio with the least effort of accounting and operation
- Fast, easy, and cheap to set up
Demerits of Hong Kong Branch Office
- A branch office is not a legally incorporated entity in Hong Kong
- The parent company is accountable and responsible for all legal liabilities and debts of the branch office
What are the Requirements of Branch Registration in Hong Kong
Now that you know the merits and demerits of opening the branch office in Hong Kong, the next thing that you need to have is the requirements of registering it.
As a matter of fact, before doing anything for registering your business, you need to choose a name and once you get the approval, then the branch must make an application for branch office registration at the Companies Registry.
Here are some of the documents requested for registration in HK-
- A list of the directors and secretary and their pertaining details;
- A list of person or persons residing in Hong Kong authorized to accept service of process and notices on behalf of the foreign company; and
- A certified true copy of the latest financial statement of the foreign company if it is a public company and is required by the law of the place of its incorporation to publish its accounts.
- Certified true copies of the foreign company’s certificate of incorporation, memorandum, and articles, or equivalent documents
Most importantly, all the documents are required to be submitted in Chinese or English to the Companies Registry. And as we all know that the branch is not a legal entity in itself, but an extension of a parent registered business, the foreign company’s Memorandum and Articles of Association will be used to open the branch.
The procedure for registering the branch office should last approximately last weeks. Once it is done, then the Companies Registry will issue a Certificate of Registration of non-Hong Kong Company.
Other than this, the branch should also apply for Business Registration Certificate with the Inland Revenue Department and also ask for any licenses required for their business.
However, you need to apply for the Business Registration Certificate within one month before launching a place of business in Hong Kong. Moreover, the local bank account needs to be opened for the branch.
Procedures of Branch Registration in Hong Kong
As soon as you are done with the registration of the management with the Companies Registry in Hong Kong, a branch office will eventually be subject to follow the same compliance requirements of all other local companies.
In short, if the business partners wishing to conduct the business due diligence process, then they will search with the Trade Register where they will find information on the branch office’s name and address. And if in this case, you are looking for some help, then Startupr can help in doing that without any problems.
Here are the registration process of a branch office in HK-
- Start the new business under the name of this branch, and then proceed to Branch Registration within one month after its starting day.
- Collect all the essential information and documents for the formation of a branch in Hong Kong.
- Prepare the branch office formation documents (delivery the document to address of branch’s owner for signature is optional).
- Submit the original signed company documents to the government department accompanied by the government fees.
- Monitor the whole process and keep the client update for any news.
- Pick up Business Registration from the government department.
- Deliver the documents to the client.
How Startupr Helps?
Well, expanding an already existing company in Hong Kong is a crucial step that brings several advantages to the current company. In fact, the Special Administrative Region offers a plethora of benefits, in terms of ease of doing business, the simple company incorporation procedure, the low taxes and the fact that it provides an international business environment.
Are you ready to register the Hong Kong branch office? If so, then Startupr should be on your radar. In fact, our pricing for HK Branch Office Registration is just $ 430 USD.
You will be pleased to know that we have several years of experience in setting up the business in Hong Kong.
We strive in preparing and managing each of the company’s filings to suit the needs of our clients. More importantly, our unique same day check system emphasis that all the information will be checked on the same day as you entered in the form.
After that, our system will send your data automatically to the Hong Kong Registry Forms and is submitted to the government portal.
So, are you ready? Great! Make up your mind and just embark into the competition with full confidence. Let us help you in opening a branch office in Hong Kong.