Like a branch, this is a means by which a company incorporated outside Hong Kong establishes a place of business in Hong Kong . A representative office can only however fulfil a limited range of functions. 'Rep offices' ? are particularly useful for foreign companies that wish to analyse the Hong Kong market before making a bigger investment in the city.

Nature and key conditions of a representative office

Functions - Whereas a branch and subsidiary can conduct full operations, a representative office may only collect information or maintain contacts with customers, so-called promotional and liaison work. A representative office cannot enter into contracts, except for renting office space and for utilities.
Business in Hong Kong - A representative office is prohibited from carrying on any business in Hong Kong . If it does, it is required to register as a branch (see above).

Registration - No registration requirements are required for a representative office.
Tax - since a representative office cannot undertake business in Hong Kong , it should not generate any profits.

Process and cost of incorporating a representative office

Step 1 - within one month, submit application and fee for Business Registration Certificate (cost HK$2,600 for one year) (click here for more).

No further registration or filing is required.

Business Registration

The certificate costs HK$2,600, must be renewed annually and is processed in 30 minutes over the counter or in 2 working days by post. The certificate is issued by the Inland Revenue Department.

One application form is all that is required to obtain the Business Registration Certificate. As an alternative to annual renewal, enterprises may apply for a certificate that lasts 3 years for which special rates apply.