A representative office in Hong Kong is popular for small to mid-sized businesses looking to establish a presence within the market. It is a great way to conduct market research and gather information before expanding your business in the country or making significant investments.
In this article, we’ll highlight the requirements and steps to register a representative office in Hong Kong.
What is A Representative Office in Hong Kong?
A Hong Kong representative office is an entity that allows foreign companies to establish a presence in a country without the complexities of setting up full business operations. This allows them to test and evaluate the Hong Kong market for their intended business activities.
A representative office does not have independent legal status and is exempt from registering with the Company Registry. However, it will require a Business Registration License to operate. The scope of activities for a representative office is limited to non-profitable activities such as the following:
- Market Research
- Brand Promotion
- Information Gathering
- Networking
- Customer Support
- Liaison Activities
When is it Recommended to Start A Representative Office in Hong Kong?
We recommend you start a representative office in Hong Kong when:
- Your company is in its early stages
- You’re looking to assess the business opportunities in Hong Kong
- You want to conduct market research
- You want to build relationships with others without fully committing to opening a full office.
Our experienced consultants at Emerhub can advise you on the process and whether starting a representative office in Hong Kong is the best path for you to undertake for your business.
Learn more about the benefits of setting up a company in Hong Kong.
Key Requirements to Set Up A Representative Office
The only requirement you will need to meet to set up a representative office in Hong Kong is to register your business and obtain a Business Registration Certificate (BRC) from the Business Registration Office of the Inland Revenue Department.
You must obtain the Business Registration Certificate within one month of starting your business operations in Hong Kong. The documents needed are as outlined:
- Name of the foreign parent company as per its certificate of incorporation. Names not in Chinese or English must come with a certified translation.
- The registered office address of the foreign parent company
- Certificate of incorporation
- Names and signatures of the directors, managers, and company secretary of the foreign parent company
- A Hong Kong address
Emerhub’s team of expert consultants will assist you with the company registration process by compiling all the necessary documentation, providing you with a corporate secretary, and getting legal documentation approval from the local government. We can also help you with additional licensing and securing a business address in Hong Kong.
Is There A Minimum Capital Requirement?
There is no minimum capital requirement to start a company in Hong Kong and this includes setting up a representative office in the country. Company incorporations will usually only require a nominal share capital of HKD 1.
A representative office relies on the support and funding of its parent companies as they cannot engage in any profit-making activities. Operational costs such as salaries, rent, and administrative expenses are financed by their money-making parent companies.
Steps to Register for A Representative Office in Hong Kong
1. Securing a Business Registration Certificate
Our local consultants can assist you with obtaining the necessary documents and Form 1(b) from the Business Registration Office of the Inland Revenue Department. We’ll ensure that you receive your Hong Kong Business Registration Certificate within 14 working days.
You must collect the certificate in person at the Companies Registry or by authorizing Emerhub to pick it up on your behalf in writing.
2. Pay The Required Fees
The general fee for a one-year certificate is HKD 2,250 but there is an option to apply for a three-year certificate with a fee of HKD 5,950. Any renewals will have to be done a month before the certificate’s expiration date. Emerhub can ensure that all the necessary fees are paid on time and we can manage the renewal process in your stead.
3. Open A Corporate Bank Account
You can only open a corporate bank account after obtaining the business registration certificate. Hong Kong banks will typically request certified true copies of your Hong Kong Representative Office registration documents or a certificate of incumbency for proof.
Need help setting up a representative office in Hong Kong? Fill out the form below and our local experts will get in touch with you right away.
