HONG KONG BRANCH
Hong Kong Branch Establishment Guide
A Hong Kong branch means a local branch of a company (headquarters) located in Korea and other overseas countries, which It is a different concept from a local corporation in Hong Kong (Private Limited Company).
1. Headquarters in Hong Kong, Korea:
- When accounting for the Korean head office, it is treated as an overseas branch, and the legal entity is the Korean head office.
- In Hong Kong, Offshore Company's Hong Kong classified as business
- When accounting, create a separate account for the Hong Kong branch and insert it into the head office’s general ledger (Hong Kong branch’s fair-value is applied)
- In the event of a branch default (or claim), the head office Legal debt accrual
- Transactions between the head office and branch offices are classified as internal transfer.
2. Hong Kong subsidiary of the Korean head office:
- A Hong Kong local corporation in which the Korean headquarters holds a majority stake, and the Hong Kong corporation becomes a legal entity.
- Classified as a Private (or Public) Limited Company in Hong Kong
- In the case of accounting, prepare an independent audit report of the Hong Kong subsidiary and prepare consolidated financial statements with the head office
- In the event of a branch default (or liquidation), it is processed within the capital of the Hong Kong corporation.
- Transactions between the head office and branch offices are classified as Internal Transaction within a group. (Adjustment of internal transactions when preparing consolidated financial statements)
Requirements when establishing a branch :
- Must have an office entity in Hong Kong (lease agreement or Hong Kong work address)
- Korean corporation business registration certificate (English / within the last 3 months)
- Notarized English translation of the articles of incorporation and registered copy (within the last 3 months)
- Shareholder List in English
- In the case of a listed company, prepare listing registration documents
- Notarized documents or notarized English translation of recent financial statements and audit reports in English
- Passport copies and abstracts in English of all shareholder directors of the head office
- A copy of the Hong Kong branch manager’s passport and proof of address in English
- expense : HKD 12,000 (branch establishment, Hong Kong corporation interpersonal service for 1 year, bank account opening (includes consulting fee for 1 location)
Period: 13 to 15 business days from the date of submission of documents (Certificate - Branch registration certificate)
** The branch name must match the corporate name of the head office.
** The branch must prepare an annual audit report in English and submit it to the Hong Kong Business Registration Office every year for public disclosure.
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