Key Takeaways
A Representative Office (RO) is a non-profit liaison office of a foreign company with no separate legal identity in Hong Kong.
An RO can only conduct market research and promotional activities, not sales or contracts.
Because an RO must not earn revenue in Hong Kong, it is not subject to Hong Kong profits tax.
To register, apply to the Inland Revenue Department (IRD) for a Business Registration Certificate (BRC) using Form 1(b), the foreign company’s incorporation certificate, and details of the Hong Kong office location.
If you are a foreign business planning to explore opportunities in Hong Kong but are not ready for the investment, paperwork, tax filings, or administrative responsibilities of launching a full-scale company there yet, registering a Representative Office (RO) can be an attractive option.
Setting up an RO allows foreign investors to establish a local presence, conduct market research, explore business opportunities, and connect with potential partners before committing to a full-scale operation.
In this guide, we explain what a Representative Office in Hong Kong is, its key features and limitations, what it can and cannot do, and provide a step-by-step process for applying.
What is a Representative Office in Hong Kong?
A Representative Office (RO) in Hong Kong is a temporary administrative office of a non-Hong Kong company, established primarily for market research, brand promotion, and liaison activities. An RO can hire staff and lease office space, but it cannot engage in profit-making or commercial activities. It has no separate legal status, so the parent company is fully liable for the RO’s actions and operations.
As an extension of a non-Hong Kong company, an RO must be registered with local authorities and operate strictly within its approved scope. Once the research objectives are achieved, or when business activities begin to involve sales or contracts, the RO is expected to close. The company should plan ahead to transition into a formal business structure if it wishes to continue operating.
What an RO Can Do and Cannot Do (Function)
Activities Allowed
✔️ Research (surveys, competitor analysis, market reports). Everything that informs the head company of the business development strategy
✔️ Act as a liaison between the parent company and local stakeholders
✔️ Run non‑transactional promotional activities to raise brand awareness within the approved scope
✔️ Hire local staff to assist with translation and product development*
Activities Not Allowed
❌ Engage in profit-making activities or carry on business in Hong Kong
❌ Sign sales contracts or close deals
❌ Issue invoices or letters of credit
❌ Receive payments
❌ Hire staff to sell products or services
*If an RO hires staff in Hong Kong, it must maintain proper payroll records and comply with all relevant employment obligations. It’s advisable to consult a legal or HR compliance expert.
Why Companies Open an RO (Purpose)
A company sets up a representative office in Hong Kong to gain a low-risk foothold in the market and strategically prepare for future expansion. It can be used to
- Scout the Market - Learn what works before spending big. Validate demand, map competitors, and identify opportunities before investing.
- Build Bridges - Meet distributors, potential partners, and local contacts without entering into contracts or signing any deals.
- Gather Intelligence - Collect insights that inform whether to establish a full branch or subsidiary.
Representative Office vs Branch vs Subsidiary
When a foreign company considers establishing a business presence in Hong Kong, there are several common options. The most frequently discussed are a Representative Office, a Branch Office, and a Subsidiary.
Let’s see how a Representative Office (RO) differs from a Branch Office or Subsidiary.
| Aspect | Representative Office (RO) | Branch Office | Subsidiary Company (Private Limited Company)* |
|---|---|---|---|
| Ideal Use | Market exploration and networking; temporary and non-commercial. | Extending existing foreign operations into Hong Kong. | Long-term, independent presence. |
| Separate Legal Entity | ❌ Part of the parent company. |
❌ Extension of foreign company. |
✅ |
| Liability | Parent company fully liable. | Parent company fully liable. | Liability limited to share capital. |
| Ownership | Fully owned by parent company. | Fully owned by parent company. | Owned by parent and/or other investors. |
| Profit-making Activities | ❌ | ✅ *Identical to parent company. |
✅ *All lawful business activities. |
| Taxation (Profits Tax) | ❌ Not applicable as RO must not earn income in HK. |
✅ Subject to Hong Kong profits tax on local earnings. |
✅ Subject to Hong Kong profits tax on local earnings. |
| Name | Uses the parent company’s name. | Uses the parent company’s name. | May adopt a unique name. |
| Registration Requirement | Business Registration. | Business Registration + Branch Registration. | Business Registration + Company Registration. |
*A subsidiary company is typically set up as a private limited liability company because it offers flexibility and limited liability.

Tip: Explore all legal entity options in Hong Kong to better understand which structure best fits your risk profile, timeline, and operational needs
Pros and Cons of a Representative Office in Hong Kong
RO offers advantages in terms of cost and administrative simplicity, but it also comes with significant operational limitations that must be carefully considered. Here are the benefits and restrictions
Advantages
✔️ Simple registration process
✔️ No minimum capital requirements
✔️ No audited financial statements required.
✔️ No Hong Kong profits tax.
✔️ Low compliance burden and ongoing compliance cost than a branch or subsidiary.
Disadvantages
❌ Limited to non-profit activities in the local market, so it only generates costs.
❌ Activities that require a legal nature (contracts, letters of credit, etc.) cannot be carried out.
❌ The parent foreign company bears full liability for the RO’s actions.
*Since the Representative Office will not be engaging in profit activities, there should not be taxes to declare, although filling the tax returns as “nil” is encouraged.
Who Can Open a Representative Office in Hong Kong?
A business must meet both conditions to open a Representative Office in Hong Kong:
- The company must be incorporated outside Hong Kong.
- It has a physical representative office location in Hong Kong.
If your company is already incorporated in Hong Kong, it cannot establish a Representative Office. This setup is designed for foreign businesses that want to explore the Hong Kong market before making a full entry or establishing a local entity.
5 Steps to Set Up a Representative Office in Hong Kong
To operate legally in Hong Kong, a Representative Office must register with the Inland Revenue Department (IRD) and obtain a Business Registration Certificate (BRC) within one month after setting up the office.
The IRD only processes applications for businesses that are already established. Applications for businesses not yet set up are generally not accepted.
Here are the steps:
1
Verify the RO Name
The RO’s name should match the foreign parent company’s name. If the exact name conflicts with another existing Hong Kong company or is inappropriate, a near‑identical name may be used.
You can check if the name is available or conflicts with existing companies via the Hong Kong Companies Registry Name Search and the Trademark Register.
2
Gather the Required Documents
Prepare the following information and supporting documents
- Domestic name of the foreign parent company; if not in Latin letters, provide a certified translation in English and/or Chinese. Include any official alternate names.
- A certified true copy of the parent company’s incorporation and/or business registration certificates given by the authority of the country or jurisdiction where the company was incorporated, showing the place of incorporation and postal address.
- Registered address of the foreign company in its place of incorporation, with translation into English or Chinese if needed.
- Address of the Hong Kong office, along with the date the office was set up. You may also use proof of address in Hong Kong.
- Full names, proof of identity and signatures or electronic signatures of the director, manager, or chief officer of the representative office.
Note: All documents must be Certified True Copies, verified by a CPA, lawyer, or the issuing authority. If the documents are not in English or Chinese, you will need to provide a certified translation in English and/or Chinese.
3
Request and Fill in the Application
To register a Representative Office in Hong Kong, you need to complete Application Form 1(b): “Business Registration – Application by a body corporate for registration.”
To obtain the application form, you must fill in the request for business registration application form, select 1(b), and submit your request using one of the following:
- Email: Send the completed request form to taxbro@ird.gov.hk
- Post or Fax: Send it to the Business Registration Office. The office will mail the application form to you. Fax: 2824 1482
- In Person: Collect the form directly at the Business Registration Office, 4/F Revenue Tower, 5 Gloucester Road, Wan Chai
Below is an example of what Application Form 1(b) looks like:

4
Submit the BRC Application to the IRD
Submit your application for the Business Registration Certificate with all required documents to the Hong Kong Inland Revenue Department (IRD).
- In person: Business Registration Office, 2/F, Inland Revenue Centre, 5 Concorde Road, Kai Tak, Kowloon, Hong Kong. Check the latest arrangement for counter services.
- By post: P.O. Box 29015, Concorde Road Post Office, Kowloon, Hong Kong. Make sure to pay enough postage, or the IRD will reject your mail.
You will also have to pay the fee of HKD 2,200 for a 1-year certificate or HKD 6,020 for a 3-year certificate when submitting your application.

Tip: Ensure the postage fee is covered when sending an application by post. The IRD will reject underpaid mail.
5
Collect the BRC from the IRD
If the application is approved, the Business Registration Certificate is usually issued within a few days. In some cases, it can be ready by the next business day, though the process may take up to 14 days.
It can be collected in person at the IRD. If a representative is collecting the certificate on your behalf, a written authorisation is required.
Keep a copy of the certificate, as it must be displayed at your Hong Kong office.
Once approved, the registered office must clearly identify itself as a “ non-trading office” on all official documents and communications. Registration is valid for 1 year or 3 years and can be renewed as long as the office remains active.
This is what a Business Registration Certificate (BRC) looks like.

How Much Does it Cost?
As of the period from 1 April 2025 to 31 March 2026, the fees for registering with the IRD and getting a Business Registration Certificate are as follows:
- 1-year certificate: HKD 2,200
- 3-year certificate: HKD 6,020
These fees are subject to change periodically. For the most current information, please refer to the official fee schedule from the IRD.
How Long Does it Take?
The IRD typically takes a few working days to issue a Business Registration Certificate (BRC) after approving the application, and in some cases, this process can be completed by the next business day. However, it may take up to 14 days if additional verification is required, or if there are errors or missing information in the application.
Final Note
Opening a Hong Kong Representative Office is a practical first step for foreign companies to explore business opportunities, plan a strategic market entry, and define the future structure of the organisation.
Nonetheless, since the activities allowed for the Representative Offices are limited, it’s essential to operate within legal boundaries to avoid compliance issues.
If your business plans start to involve commercial transactions, transitioning to or setting up a formal entity such as a Hong Kong Limited Company is the natural next step.
How Statrys helps
At Statrys, we help you establish a Hong Kong Limited Company. We support every stage of the setup process, including appointing the mandatory local company secretary and registering a local address. The process is fully 100% online. We can also assist you in opening a Hong Kong multi-currency business account to manage domestic and international transfers
FAQs
What is a Hong Kong Representative Office?
A representative office is a non-transactional office set up by a company to evaluate Hong Kong markets through research, liaison, and promotion.





