Sales Representative in Hong Kong SAR

Overview by

Commercial Intermediaries

Trading Companies
  • Type of Organization
To penetrate the retail market, the best means is to go through a distributor who will buy your products for resale. You can also go through a trading company.
  • Main Actors
HK Trading Ltd., Li&Fung Group, Shriro, Hin Sang Hong Company Limited, Connectland Technology Limited.
  • Type of Organization
Wholesalers are generally specialised in a certain type of large consumption goods (foodstuffs or others) or in industrial equipment and handicrafts.
  • Main Actors
Hong Kong Wholesalers

Using a Commercial Agent

The Advantages
This is one of the best form of Hong Kong market penetration. They are much less specialised than in Europe or United States, but they concentrate on one line of business.
Where to Be Vigilant
In Hong Kong, there is no legislation on agency contracts. Therefore care must be taken while signing the agency contract.
Elements of Motivation
The amount of remuneration for an agent is an important motivating element.
The Average Amount of Commission
5 to 18%, based on the sectors.
Breach of Contract
Generally in the agency contracts, the industrial and commercial activities are restricted after cancellation of the contract.
Finding a Commercial Agent
Ekatius, Find a sales agent
Find Sales and Distribution Service Providers in Hong Kong on

Setting Up a Commercial Unit

The Advantages
Although this establishment is expensive, setting it up in Hong Kong means opening a door to Asia, particularly for China with the signature of CEPA (Closer Economic Partnership Arrangement, free trade agreement between HK and China).
Where to Be Vigilant
Planned especially with a long term logic.
Different Possible Forms of Settlement
  • A Representative Office
Like the branch, this is a means for a company to build an establishment. However, a representative office can only exercise limited functions. This is a form of establishment which enables to analyse the Hong Kong market before investing more.
For further information visit the website Invest in HK.
  • A Branch Office
A branch can enhance its reputation of creditworthiness. Different from a representative office, a branch has greater liberty to operate and a more favourable tax treatment.
  • A Company
A subsidiary can be freely established in Hong Kong. It offers a better guarantee for protection of the trademark, obtaining credit and market penetration;.
For further information, visit the Hong Kong economic and commercial office site in Brussels.


Evolution of the Sector
It is easy to establish a franchise system for a foreign company since there is no specific legislation, exchange control, anti-monopoly law and no equity obligation for foreign and local shareholdings in partnerships. There are nearly 90 franchise brands present in Hong Kong.
Some Big Franchises
The Body Shop , cosmetics
Circle K , Neighbourhood store
Ikea , furniture
KFC , fast food
Pizza Hut , catering
Franchise in Hong Kong
For Further Information
Hong Kong Franchise Association

Finding Assistance

Export Trading Companies
Dutch Export Company Asia Ltd
Recommended Resource
Find more on about Selling to Hong Kong.

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