Foreign representative office vs foreign branch office
- They both use the name of the parent company.
- They both do not need minimum capital before establishing.
- No requirement for the number of members in terms of minimum or the maximum number of members.
- There are no limited liabilities as the liabilities are extended to the parent company.
- They both can open a bank account in Hong Kong.
- 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.
- 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.
- 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.