Company Formation Hong Kong

CHECK COMPANY
NAME AVAILABILITY (Step 1)



Articles

Establish a Branch vs. a Subsidiary in Hong Kong

Updated on Tuesday 28th February 2017

Rate this article
5 5 1
based on 2 reviews


Establish_a_Branch_vs_a_Subsidiary_in_Hong_Kong.jpgForeign company registration in Hong Kong

 

Foreign companies that wish to establish their presence on the Hong Kong market can choose to open a branch or a subsidiary or a representative office. The most important aspects to consider when deciding to choose between one business structure and another are the company’s plans for the future and long-term goals. 

 

Our company formation agents in Hong Kong are ready to give you personalized advice if you want to open a company in Hong Kong.

 
The main characteristics of the branch and the subsidiary are summarized in the video below: 

Subsidiaries in Hong Kong

 
A subsidiary is a company in Hong Kong, usually a private limited liability company that is wholly-owned by the foreign investor. The limited liability company is a separate legal entity from the parent company and will be treated just any other type of company in Hong Kong, in terms of taxation and requirements for incorporation.
 
The company registration procedure in Hong Kong is simple and our Hong Kong company formation representatives can help you register a subsidiary in the shortest amount of time possible. A subsidiary will need to have a name that has received approval for use, will need a local registered address, a director and a shareholder and share capital but with no minimum requirement.
 
The biggest advantage of the subsidiary, and the reason why some foreign investors prefer this business form, is that the parent company does not have to be liable for the debts and obligations of the subsidiary. The parent company will own a part of the subsidiary’s share capital and will be limited only to its extent.
 

Branches in Hong Kong

 
A branch in Hong Kong is essentially an extension of the parent company abroad and is not a separate legal entity. This means that the company abroad is responsible for all the branches’ debts and liabilities. Like a subsidiary, a branch must also be registered at the Hong Kong’s Companies Registry.
 
The biggest advantage of a branch in Hong Kong is related to the tax advantages it can have in relation with the parent company and the fact that it can rely on credit from the parent company. Usually, branches require less time to be incorporated and this is also a reason why some foreign investors choose to set up a branch. 
 
The company registration procedure in Hong Kong for branches and subsidiaries is similar to that required when opening any type of company in Hong Kong. If you want to open a Hong Kong company, our company formation agents can give you detailed information about the documents needed and any associated costs.
 
You can contact our company registration consultants in Hong Kong for more details about Hong Kong branches and subsidiaries.
 
 

Comments

There are no comments

Comments & Requests


Please note that client queries should NOT be posted here but sent through our Contact page.

Meet us in Hong Kong

Call us now at + 852 8191 3385  to set up an appointment with our company formation experts in Hong Kong. As a DM Advisory client, you will benefit from the joint expertise of local lawyers and consultants for opening an offshore company in Hong Kong.

We offer:

- prompt response to your inquiry (maxim 24 hours);

- cost-efficiency: competitive company formation prices;

- free and complete legal information featured on our site, at your disposal.

Tax Calculator

tax-calculator-hong kong

Testimonials

Francesco-Dagnino.jpg

I have been working with partners at OpenCompanyHongKong.com for several years now and I am extremely pleased with their services. Their team helped my clients extend their businesses in Hong Kong.

Francesco Dagnino, Partner of
Lexia Avvocati
www.LawyersItaly.eu

Read more testimonials

We Recommend ClientPedia

This website is marketed by ClientPedia

Banner-Promoting ClientPedia-244px.jpg

We accept online payments

paypal-logo.png