How the Establishment Of A Hong Kong Branch Can Benefit Your Business

Expanding into Asia is a significant step for international companies. Hong Kong remains one of the most attractive destinations thanks to its open economy, simple tax regime, and strong common-law framework. Establishing a branch (legally a registered non-Hong Kong company) gives your business a credible presence in Asia while leveraging Hong Kong’s strategic advantages.

Why Choose Hong Kong for a Branch?

• Gateway to Asia: Hong Kong’s position and connectivity make it an ideal base for regional operations.

• Predictable legal and regulatory environment: Clear rules, efficient registries, and reliable enforcement.

• Efficient setup & compliance: Compared with forming a new Hong Kong company, registering a branch focuses compliance on registration, business registration, and annual filings for the branch rather than full local corporate governance.

Key Benefits of a Hong Kong Branch

• Brand continuity: Operate under your existing corporate name for market recognition.

• Focused compliance: A branch is not a separate legal entity; it’s an extension of the parent company registered in Hong Kong, so filings relate to the branch and parent’s latest published accounts where applicable.

  Official Reference: cr.gov.hk

• Attractive tax regime: Hong Kong uses a territorial basis of taxation and a two-tier profits tax for corporations: 8.25% on the first HKD 2 million of assessable profits and 16.5% above that. There is no VAT, GST, or capital gains tax. See the IRD’s profits tax page (two-tier rates and chargeability).

  Official Reference: Inland Revenue Department – Profits Tax. Inland Revenue Department

Step-by-Step: Establishing a Hong Kong Branch

1) Decide to register as a “registered non-Hong Kong company”

A foreign company that establishes a place of business in Hong Kong must register within 1 month. Core documents include Form NN1, certified constitutional documents, specified certificates, latest published accounts (if applicable), and IRBR2 (notice to the IRD for business registration). Official guidance and deadlines:

Official Reference: Companies Registry – FAQ (Registration). cr.gov.hk

2) Branch name

Branches typically use the parent’s corporate name. If you wish to carry on business under an approved additional name in Hong Kong, this is handled by Form NN12 (Return of Approved Name for Carrying on Business in Hong Kong by Registered Non-Hong Kong Company). (Form index and details are under “Specified Forms”.)

Official Reference: Companies Registry – Specified Forms (NN1/NN3/NN12, etc.)

3) Appoint an Authorized Representative

You must maintain at least one Authorized Representative in Hong Kong (e.g., a Hong Kong-resident individual, a solicitor corporation/firm, or a CPA practice/firm). See the CR’s registration FAQ for who qualifies.

Official Reference: Companies Registry – FAQ (Registration)

4) File & pay the correct fees

• Companies Registry application fee (Form NN1): HKD 1,545 (e-filing) or HKD 1,720 (hard copy).

• Annual Return (Form NN3): HKD 180 if delivered within 42 days after each registration anniversary; higher fees apply for late delivery.

  Official fee table: Companies Registry – Major Fees

5) Obtain your Business Registration Certificate (BRC)

The IRD issues the Business Registration Certificate. For 1 Apr 2025 – 31 Mar 2026, the 1-year certificate total is HKD 2,200 (levy HKD 0), and the 3-year certificate total is HKD 6,020 (fee HKD 5,720 + levy HKD 300). See the current table: IRD – Business Registration Fee & Levy Table (PDF). Inland Revenue Department

Ongoing Compliance for a Hong Kong Branch

• Annual Return (Form NN3): File within 42 days after each registration anniversary. A certified copy of the parent’s latest published accounts may be required depending on home-jurisdiction obligations.

  Official Reference: Companies Registry – Annual Return (Registered Non-Hong Kong Company)

• Business Registration renewal: Renew the BRC on time (1-year or 3-year option).

  Official Reference: IRD – Business Registration Fee & Levy Table (PDF). Inland Revenue Department

• Disclosure at premises & on documents: Display the company name and place of incorporation at business venues and state them on communications and transaction instruments; disclose members’ limited liability where applicable.

  Official Reference: (See CR compliance/FAQ pages and Cap. 622M.)

Conclusion

Registering a Hong Kong branch is a practical way to expand into Asia without forming a separate local entity. The process is clear, fees are published, and ongoing obligations are straightforward when tracked against official guidance. For definitive requirements and the latest charges, rely on the Companies Registry and Inland Revenue Department sources linked above.