How to Set Up A Branch Office In Hong Kong? 

Any international company that wants to start a business in Hong Kong can start a business in a few ways. One of the most common ways to expand your business is opening a branch office at the place you want to expand. So, setting up a  branch office in Hong Kong is the most natural way to go into a new market and recreate the kind of business done by the parent company. This guide will be exploring how you set up a branch office in Hong Kong, its benefits and what you need to know. 

What Is Considered A Branch Office? 

A branch office is an extension of a foreign parent company that operates in another jurisdiction without forming a separate legal entity. The foreign parent company is fully liable for the debts, obligations, and legal responsibilities of the branch. In Hong Kong, a branch office must be registered as a non-Hong Kong company with the Companies Registry. Despite not being a separate legal entity, a branch office is subject to Hong Kong’s local tax regulations, including profits tax. However, it cannot benefit from Hong Kong’s network of Double Taxation Agreements (DTAs). 

Can Foreigners Open a Branch Office in Hong Kong?

Yes, foreign companies are allowed to establish branch offices. Hong Kong imposes no restrictions on foreign ownership which allows businesses to be fully owned and operated by non-residents. A branch office is ideal for foreign companies looking to expand operations directly into Hong Kong while maintaining control and corporate identity under the head office.

Benefits of Setting Up a Branch Office in Hong Kong

1. Simple and Cost-Effective Setup

No minimum capital requirement is imposed in Hong Kong to set up a branch office which makes it easier to get started. Registration is simple with minimal documentation primarily only need the parent company’s incorporation documents and a business registration certificate. The setup and maintenance costs are also lower compared to incorporating a separate legal entity like a subsidiary.

2. Access to the Hong Kong Market

A branch office provides direct entry into the dynamic Hong Kong business environment. It allows foreign companies to extend their existing operations and establish a local presence while retaining their international brand identity.

3. Operational Control and Branding

The parent company retains full control over the management and operations of the branch. This structure allows for consistent branding and business practices across multiple jurisdictions.

4. Favorable Tax Environment

Hong Kong offers a competitive corporate tax rate and other tax incentives. Although typically not applicable to branches, in some cases, double tax treaty benefits may be partially accessed depending on the nature of the business and applicable treaties.

5. No Statutory Audit for Branches

Branch offices are not required to file a separate audit unless explicitly requested by the Inland Revenue Department (IRD). This reduces recurring compliance and administrative costs.

6. Simple Cessation Process

If the branch office needs to cease operations, the process is simply to notify the Companies Registry and the Inland Revenue Department within 7 days of cessation.

Requirements to Set Up a Branch Office in Hong Kong

Establishing a branch office in Hong Kong involves several regulatory and administrative steps. Here are the key requirements that foreign companies must meet to ensure successful registration:

1. Branch Name

The branch office must use the exact same name as the foreign parent company. The Companies Registry may reject the application if the name is already in use in Hong Kong. 

2. Local Representative

A branch office must appoint at least one local representative who is Hong Kong resident. This representative may be an individual or a corporate entity. They are responsible for receiving legal notices on behalf of the branch.

3. Physical Location of Business

The branch must maintain a registered business address in Hong Kong. This location will serve as the place to store statutory records and conduct official correspondence.

4. Governing Documents and Business Activities

Unlike a Hong Kong-incorporated company, a branch office does not require its own Articles of Association. The foreign parent company’s constitution governs the branch, including its business activities.

5. Registered Capital

There is no minimum capital requirement for setting up a branch office in Hong Kong.

6. Required Documents

To register a branch office, the following documents must be prepared and submitted:

• A completed registration form containing:
  • The Hong Kong business address
  • Details of the local representative
  • Information about the foreign parent company

• Certified copies of:
  • The Memorandum and Articles of Association of the parent company
  • The Certificate of Incorporation or similar registration certificate of the parent company
  • The most recent financial statements of the parent company
  • Identification documents of the local representative

All documents must be in English or Chinese. If documents are in other languages, they must be officially translated and certified before submission.

How to Set Up a Branch Office in Hong Kong

Here’s a step-by-step guide to establishing a branch office in Hong Kong:

1. Ensure the Company Name Is Acceptable

The branch name must match the name of the foreign parent company. The Companies Registry will reject names that:

• are identical or too similar to existing names in the Companies Registry’s database
• infringe existing trademarks
• are offensive or misleading

A name availability search can be done through the Companies Registry’s CyberSearch Centre or in person at the Public Search Centre (13th floor, Queensway Government Offices).

Read How to Choose a company name in Hong Kong

2. Register with the Companies Registry

You have to register the branch office within one month of establishing a place of business in Hong Kong. Submit all required registration documents, including:

• Completed registration form
• Certified copies of parent company documents (e.g., Certificate of Incorporation, Articles of Association, financial statements)
• Details of the local representative
• Proof of the Hong Kong business address

3. Wait For Approval and Certificate Issuance

After submission, the Companies Registry will review the application and inform you with an update. Once approved, the branch will be issued a Certificate of Registration of a Non-Hong Kong Company.

The representative can collect the certificate in person from the Companies Registry. If sending someone else, a written authorization is required.

Post-Registration Ongoing Compliance Requirements

After successfully registering your branch office in Hong Kong, there are a few important steps to follow to ensure ongoing compliance.

1. Obtain A Business Registration Certificate

Once the Companies Registry approves your application, you will be issued both the Certificate of Registration of Non-Hong Kong Company and the Business Registration Certificate from the Inland Revenue Department (IRD). These certificates are essential for legally operating your branch office in Hong Kong.

2. Open a Corporate Bank Account

With your registration completed, the next step is to open a corporate bank account in Hong Kong. To open a bank account, you will need: 

• Certified copies of company documents
• Proof of business address
• Details of the branch office’s authorized signatories and representatives

Most banks will require an in-person interview with company directors or representatives as part of the account opening process.For a smooth experience, it’s advisable to work with a corporate service provider who can guide you through document preparation and bank coordination.

3. Apply for Business Licenses or Permits (If Applicable)

While not all businesses in Hong Kong require specific licenses, some industries are required to obtain proper approvals before commencing operations.  It is your responsibility to verify if your business activities require a license and ensure timely application to avoid penalties or delays in operations. If your business falls into any of the categories below, you must apply for the relevant licenses from the appropriate government departments:

• Education services
• Employment agencies
• Event management companies
• Financial services
• Restaurants and food services
• Retail businesses
• Trading companies
• Travel agencies

Set Up A Hong Kong Branch Office With FastLane

Hong Kong plays the role of a perfect spot for most business entities that wish to be established in the Asia Pacific region. If you don’t want to incorporate an independent company right now, starting with a branch office set up in Hong Kong as your operating base is a good option.

Whether this is your first branch or you are considering expanding your business from one office, you are likely to face some challenges. Contact FastLane to find out more about how you can benefit your organization. We offer a wide range of secretarial services tailored to the needs of our client companies, including registering the branch.
Schedule a meeting with our team today!