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Choose the best sort of business structure as per your Business plans

World-class infrastructure, low-tax regime, well-developed banking infrastructure, stable and free economy, gateway to the Chinese market, business-friendly environment, and some of the others factors that attract foreign business investors or entrepreneur for Hk company registration. There are three types of business structures which are accessible for foreign companies who want to establish a presence in Hong Kong which are:

  • Subsidiary Office,
  • Branch-office, and
  • Representative Office

The choice of sort of business totally depends upon the business strategy and goals. Most of the small or medium sorts of companies always choose subsidiary and representatives office while large a sort of company always chooses branch office. Here are the details which help you to choose the right form of business:

  • Subsidiary Office: - A Subsidiary company is always a Private Limited Company Registration Hong Kong. A Subsidiary company is a small or medium sort of companies, in other words, the foreign business investors who want to start a small or medium sort of company so they choose a subsidiary office. It is a separate legal entity so that the company is liable to pay their debts and equity. Setting up a subsidiary sort of company is most of the company choices or preference because it provides lots of advantages to the foreign investors.  Hong Kong allows 100% foreign ownership of the companies so that they can easily setup their company here. If you don’t know the process for company registration Hong Kong then don’t worry agency will provide you the best solution and easily register your company here.
  • Representatives Office: - Foreign investors who want to gain market exposure and have a better understanding the environment of the Hong Kong business then they can choose the representative’s office first. It is not a separate legal entity and cannot engage in any profit making activities so that the foreign investor is fully liable to pay all the debts and equity. It cannot sign any contracts and sign deals.
  • Branch Office: – Branch office is also like a representative office it is also not a separate legal entity and cannot come in any contract. So that the foreign investors are completely liable to pay all the debts and equity. As we know, that Hong Kong government permits the full ownership of the foreign companies for HK Company registration. The branch office is for that company who have large sort of business and wish to obtain the market presence.

So, these are the three types of company which the foreign investors choose according to their business plans and objectives. I hope this article is useful for you and helps you to choose the sort of business.

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