CPY Accounting & Secretary Services

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Setup Representative Office in Hong Kong

Representative Office

Setup Representative Office in Hong Kong

The purpose of a Representative Office is to conduct market research activities.
It cannot engage in trading activities or business activities that generate profits.
The staff strength should be reasonable and kept to the essential minimum.

A Representative Office is not permitted to enter into legal contracts on its own, nor can it negotiate on behalf of the parent company, sign deals, raise invoices or be involved in trading activities. On the basis that it will not conduct any business in Hong Kong, a Representative Office should not generate any profits within the scope of Hong Kong taxation and it may apply to the Inland Revenue Department for an exemption from filing profit tax returns on the basis that it does not carry on business in Hong Kong; otherwise it may file annual profit tax returns on a “NIL” basis.

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