Establish a Branch vs a Subsidiary in Hong Kong
-
Upload
law-firm-in-hong-kong -
Category
Business
-
view
56 -
download
0
Transcript of Establish a Branch vs a Subsidiary in Hong Kong
Establish a Branch vs. a Subsidiary in Hong Kong
A presentation brought to you byOpenCompanyHongKong.com
1
2
Foreign Businesses in Hong Kong
• Hong Kong is a global business and trade centre and many international companies want to locate their Asian market operations in this business friendly city.
• Foreign companies that want to establish their presence in Hong Kong can open a branch or a subsidiary in Hong Kong.
3
Options for Foreign Investors in Hong Kong
• The branch and the subsidiary are the two top choices for foreign companies that enter the Hong Kong market.
• Before starting their operations in the city, foreign companies can also open a representative office, with a limited scope of action.
4
Choosing Between the Branch and the Subsidiary in Hong Kong
• The choice between the branch and the subsidiary in Hong Kong will largely depend on the foreign company’s plans for expansion on the Hong Kong and Asian market.
• The foreign company registration options in Hong Kong can also depend on the existing budget and the size of the parent company.
5
The Hong Kong Branch
• The branch in Hong Kong is essentially an extension of the foreign company.
• It is not a separate legal entity, it performs the same commercial and business activities and shares the name. The foreign company is liable for its debts and obligations.
6
Branch Registration in Hong Kong
• The registration procedure for a Hong Kong branch is simpler than in the case of the subsidiary. This characteristic is advantageous for some foreign investors.
• An Application for Branch Office Registration must be submitted with the Hong Kong Companies Registry.
7
The Hong Kong Subsidiary
• The subsidiary is a separate legal entity from the overseas parent company that is 100% percent owned by it.
• The liabilities of the subsidiary do not transfer to the parent company. This business form is registered as a limited liability company in Hong Kong.
8
Subsidiary Registration in Hong Kong
• The registration procedure for a subsidiary in Hong Kong is the same as for Hong Kong resident companies.
• The company must choose a suitable name, register with the Companies Registry and obtain the necessary permits for conducting business.
9
Cost Considerations Branch vs. Subsidiary in Hong Kong
• The differences between the branch and the subsidiary in Hong Kong imply more than the parent company’s liability.
• The branch has lower incorporation costs and no minimum share capital. The liquidation proceedings for a branch can be simpler than in the case of the subsidiary.
10
Company Formation Assistance in Hong Kong
• Foreign companies in Hong Kong can enjoy a series of tax benefits under the double tax treaties concluded by the city.
• You can contact our company formation agents in Hong Kong for more information and help for setting up a branch or a subsidiary.
Thank You for Your Attention!
For more information please contact us at:
+ 852 8191 3385 (for international clients)
http://www.opencompanyhongkong.com/ 11