Overview of company structures

Foreign representative office vs foreign branch office


  • Similarities:

    1. They both use the name of the parent company.
    2. They both do not need minimum capital before establishing.
    3. No requirement for the number of members in terms of minimum or the maximum number of members.
    4. There are no limited liabilities as the liabilities are extended to the parent company.
    5. They both can open a bank account in Hong Kong.

    Differences:

    1. The main difference between a representative office and a branch office is that a branch office is a setup to generate a profit while a representative office is a setup to research the market and gain an insight into what the business environment looks like, it does not make a profit.
    2. A branch office is a legal entity that can contract any business deals and contracts, while a representative office cannot because it is not a legal entity.
    3. A representative office is not required to register or remit capital while a branch office is mandated to register as a company and have minimal capital.