Opening a Representative Office in Hong Kong

You can open a representative or liaison office in Hong Kong if you have a foreign business and want to test the market before expanding your commercial operations here. Our local lawyers can help you with the creation of a liaison office followed by the registration of another legal entity.

What are the characteristics of a liaison office in Hong Kong?

The following:

• it has no separate legal personality, unlike companies incorporated in Hong Kong;
• it depends on the parent company for approval of its budget and activities;
• the liability for the debts and obligations of the office also rests on the foreign-established company;
• it cannot engage in any type of commercial or profit-deriving activity;
• it cannot sign or enter into contracts on behalf of the parent company.

What activities can my foreign company complete through a representative office in Hong Kong?

The following:

• promotion activities;
• market research;
• organize various activities on behalf of the parent company;
• participate in fairs.

What is the procedure to register a liaison office in Hong Kong?

The procedure is fairly simple and can be completed remotely through our lawyers in Hong Kong, who can submit a set of documents to the Inland Revenue. This is the standard business registration with the Business Registration Office of the Inland Revenue Department; registration with the Companies Registry as a non-Hong Kong company is required only if a place of business is established.

IMPORTANT! The registration of the office must be completed within ONE MONTH after the office starts operating in Hong Kong.

What documents must I prepare for the registration of a representative office in Hong Kong?

All you need to send our agents is a certified true copy of your company’s Registration Certificate or an extract from the Trade Register. If the document is not in English or Chinese, a certified true copy of its translation is required.

How long does it take to open a representative office in Hong Kong?

Approximately one month.

Do I need to apply for any licenses if I open a representative office in Hong Kong?

No, the liaison office will not have to obtain special permits and licenses, given the fact that it will not engage in commercial (profit-producing) activities;

Can I hire staff in a liaison office in Hong Kong?

Yes, the representative office can hire local or foreign staff. For the latter, a work visa is required.

Can I convert a Hong Kong liaison office into another business form?

Should a foreign company determine that doing business in Hong Kong is a suitable choice, it will have to start the formal procedures for company formation in this jurisdiction. In some cases, the use of a shelf company (an already registered legal entity) is a good option.

How is a liaison office taxed in Hong Kong?

Because the activities of the representative office are very limited, this type of establishment does not need to observe the usual taxation requirements. However, it must still file any tax return issued to it by the Inland Revenue Department and, if it has staff, the annual Employer's Return.

In case you are interested in another offshore jurisdiction for opening a liaison office or a branch office, we can put you in contact with our partners from Panama. The team at BridgeWest Panama can help you incorporate your business in Panama.

If your company could benefit from setting up a liaison office, contact our law firm in Hong Kong for detailed information and legal assistance for the incorporation procedure.