Establishing a Representative Office is a suitable option for foreign companies that wish to explore business opportunities in Hong Kong and surrounding areas before making a major investment. A Representative Office is considered a liaison and promotion office, and is only allowed to carry out activities within that scope. In this article, GLA will provide information to help you understand the responsibilities and operations of this type of company, including:
- Advantages and disadvantages of establishing a representative office in Hong Kong.
- Procedures for establishing a representative office in Hong Kong.
1. What is a representative office?
A representative office is an office opened to research and evaluate new markets under the name of the parent company. A representative office does not have independent legal status in Hong Kong and is not allowed to conduct business activities, sign contracts, or generate revenue or profits.
2. Advantages and disadvantages of representative office
Advantage:
- No registration with the Company Registrar, no minimum capital requirement and no filing of tax returns. The only requirement for a Hong Kong representative office is to obtain a business registration certificate from the Hong Kong Inland Revenue Department.
- There is no requirement to submit any financial or audit reports to the Hong Kong government.
- The cost of maintaining and operating a representative office is low due to the limitation of not conducting business activities in Hong Kong.
Disadvantages:
- Not recognized as a legal entity for representative office.
- Not allowed to carry out business activities, develop revenue and profit.
- Not to participate in, sign contracts or transactions on behalf of the company.
- Limit market research activities and organize seminars, contact with partners to use under the name of the parent company.
3. Documents required to establish a representative office in Hong Kong
The company needs to prepare and provide the following documents and records to establish a representative office in Hong Kong:
- Application form for registration with the Hong Kong Inland Revenue Department.
- Certified copy of Certificate of Establishment of parent company.
- Certified copy of parent company's charter.
- Information on the registered office address of the parent company.
- Details of the authorized representative office head in Hong Kong, including: name, address and identification documents.
4. Procedures for establishing a representative office in Hong Kong
A representative office in Hong Kong does not need to be registered with the Companies Registrar. However, a Business Registration Certificate must be obtained from the Hong Kong Inland Revenue Department within one month of commencing operations. The following documents are required for registration:
- Application form as prescribed.
- Parent company certification documents.
- Proof of identity of the head of the Representative Office in Hong Kong.
Once the registration is successful, the business registration certificate will be issued on the next working day and must be collected in person. The business registration certificate must be displayed conspicuously at the company office at all times. If the details of the registration certificate change, notification must be made to the Hong Kong Inland Revenue Department in writing within one month of the change. A new business registration certificate will be issued one month before the regular expiry date, either annually or every three years, depending on whether the certificate is valid for one year or three years.
Once the Representative Office receives the business registration certificate from the Hong Kong Inland Revenue Department, the Company can open a traditional bank account or a digital bank account in Hong Kong, Singapore, Offshore, etc.
The company should open 2 types of accounts: traditional banking , and Digital Bank for companies. Because traditional banks have a high level of prestige and security, however, the time to open and review accounts is long and difficult, requiring a high minimum balance, some banks require a direct interview. Digital banks with quick account opening time (from 1 - 2 weeks), completely online, no minimum balance requirement, low maintenance fees are the choice of most individuals / foreign business companies.

- Representative office in Hong Kong is a suitable choice for foreign companies that want to survey and create contact points in the Hong Kong market.
- The procedure for opening a representative office in Hong Kong does not require registration with the Companies Registar, but it is necessary to apply for a Business Registration Certificate with the Hong Kong Inland Revenue Department and renew the license annually.
- You should open a traditional bank account and a digital bank account for easy payment, financial transactions and high security.

This article was published by GLA on 01/12/2015. Copyright and accompanying content are intellectual property of GLA. All rights reserved.
The guidance and content are for general information only and are not intended to provide specific guidance and advice on accounting, tax, legal or other professional advice. Readers should consult professional advisors on specific issues.