• A subsidiary company is more preferred by foreign investors in Hong Kong than a branch office because a subsidiary company is responsible for its liabilities and it enjoys several tax advantages. Hence it bears its own success or loss without it being extended to the parent company. It is also faster to set up than a branch office as it takes 4-7 working days as compared to 14 working days of setting up a branch office.
  • A subsidiary office does not require the presence of local personnel while a Branch Office must have one local representative.
  • It is easier to open a corporate bank account as a foreign subsidiary company than as a foreign branch office.