Hong Kong branches
are business entities which are easily incorporated and that answer to a parent company abroad. All investors wishing to open such a business venture in the city must duly observe the annual filing requirements.
The Hong Kong company formation
process for branches of foreign corporations is accessible to all investors and it only involves a few steps. Branches act only as business entities used to help carry out the activities of a foreign company in the Special Administrative Region.
Foreign investors in Hong Kong who wish to open a business entity with more autonomy can choose to open a subsidiary
Filing compliance for branches in Hong Kong
The Hong Kong Inland Revenue Department (IRD) has certain requirements in place both for locally incorporated companies and for foreign companies (branches) that engage in business operations in the city. The annual filing requirements
are due both with the IRD and with the Companies Registry
While branches in Hong Kong
have lighter reporting requirements than other types of legal entities, such as the limited liability company, investors are advised to seek guidance and representation if needed in order to comply with these annual requirements if they cannot be present in the city when the filing date
Company registration in Hong Kong is mandatory for all companies, including branches. Once this step if complete, the annual returns and annual accounts are also needed for a branch. The specific accounting reporting requirements may also depend on the country in which the non-Hong Kong company is based. In these cases, the foreign companies may be required to deliver an annual certified copy of its accounts and submit it ti the Companies Registry.
Branch incorporation in Hong Kong
The basic requirements for branches in Hong Kong are the following:
- have a place of business located in Hong Kong and a Hong Kong resident who will act as an authorized representative;
- engage in the same business activities as the parent company abroad and have the same name;
- register the branch office with the Companies Registry by providing the requested documents and forms;
- open a bank account
and obtain any needed business licenses;
- observe the taxation principles in Hong Kong.
For further details concerning company registration in Hong Kong, you can consult with our experts.
if you need more details on opening and running a branch in Hong Kong or if you need special assistance to open a Hong Kong company