Q：
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What are the options available for foreign investors to set up an entity in Hong Kong with their existing companies?
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A：
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They can choose to form an entity by either subsidiary, branch or representative Office. The differences are below:
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1.
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Fully owned subsidiary is a private limited company that is solely hold by its foreign parent company. It is suitable for investor who wants to expand its business in Hong Kong with limited liability.
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2.
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Branch is an extension of a foreign company which is not a separate legal entity from the foreign company. It is suitable for company that wants to expand business in Hong Kong directly with its foreign company.
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3.
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Representative Office is prohibited to take place in any business which is mainly for introducing the company to the market and conduct market research. In general, the intention for setting up such office is having market research before making a long-term investment.
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Q：
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What are the major benefits of having a subsidiary?
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A：
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Setting up a subsidiary in Hong Kong can be eligible for the same incentive and tax exemptions as other Hong Kong local companies. Being a separate legal entity, the liabilities will be kept within the subsidiary level.
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Q：
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Are there any restrictions on setting up a subsidiary in Hong Kong?
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A：
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Yes. Setting up a subsidiary by the form of private limited company in Hong Kong, the sole director cannot be appointed as the company secretary. The company must also have at least one individual director. Yet, the individual director could be a local or foreign person.
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Q：
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What is a branch?
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A：
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Branch (may also known as Non-Hong Kong Company) refers to an entity that is an oversea company having a place of business in Hong Kong.
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Q：
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How to set up a branch in Hong Kong?
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A：
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To set up a branch in Hong Kong, the applicant needs to submit an incorporation form with certified corporate documents to the Companies Registry. Kaizen could assist you with setting up a branch in Hong Kong. Please feel free to communicate with our specialist for further details.
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Q：
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What is the role of a representative office?
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A：
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Representative offices can only engage in liaison, publicity, market research and other activities not for profit. Business cannot be carried out by representative office. All business contracts must be signed and carried out by the foreign company.
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Q：
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What are the major benefits of setting up a representative office?
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A：
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The benefit of setting up a representative office in Hong Kong is its quick and simple registration. The business registration certificate can be issued at the same day of form submission. The only requirement is having a business address in Hong Kong.
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