Representative office
in Hong Kong.

Advantages.

• 

  There are no registration requirements with the Company Registry, no minimum capital requirements and no compliances like filing tax returns nor maintaining accounts. The only requirement is to register with the Inland Revenue Department and obtain a Business Registration Certificate.

• 

  It is not required for a representative office to file any financial or other statutory returns with the authorities in Hong Kong.

• 

  Low maintenance cost from a compliance perspective due to its operating limitation.

Disadvantages.

• 

  It has to limit itself to promotion and liaison activities, undertaking market research and organising activities on behalf of the foreign company.
• 

  It cannot be involved in profit-making activities and is not classified as a legal entity. It cannot sign or enter into any contracts, sign deals on behalf of the company, raise invoices or letters of credit nor engage in trading activities.

Post-registration steps.

• 

  Obtaining a Business Registration Certificate – the certificate will be issued on the next working day and must be collected in person. The Business Registration Certificate must be noticeably displayed on the office premises at all times. If the registered particulars of the business have changed, you must notify the Hong Kong Inland Revenue Department in writing within one month of the change. The Business Registration Certificate should be renewed one month before expiry on an annual basis or once every three years, depending on whether your Certificate is valid for one year or three years.

• 

  Opening of bank account – once the representative office has received the Business Registration Certificate from the Inland Revenue Department, you may open a bank account with any of the local or international banks based in Hong Kong.