Streamline Your Hong Kong Expansion with Professional EOR Services
Whether you need to hire employees in Hong Kong for your startup or manage global employment Hong Kong operations for your enterprise, understanding EOR Hong Kong services and Hong Kong employment laws is crucial for success. This comprehensive guide explores everything you need to know about payroll services Hong Kong, work permits Hong Kong, and employment compliance Hong Kong to help you navigate the market effectively.
Using an Employer of Record eliminates the traditional barriers to Hong Kong expansion, allowing you to focus on growing your business while experts handle the complex regulatory landscape. From managing Hong Kong employment laws compliance to processing payroll services Hong Kong and securing work permits Hong Kong for your international team, a professional EOR service ensures your global employment Hong Kong strategy succeeds from day one.
Hong Kong Market Overview
Economic Powerhouse of Asia
Hong Kong remains Asia's premier financial hub and the primary gateway to the Greater Bay Area (GBA). In 2026, the territory continues to leverage its "Super-Connector" status, linking Mainland China's manufacturing might with global capital markets. With a population of ~7.53 million and a projected GDP exceeding $420 billion, Hong Kong offers access to a highly educated workforce and the world's busiest air cargo logistics network.
Key Economic Indicators (2025 Data)
- GDP per Capita: ~$56,800 USD (Among the highest in Asia)
- Unemployment Rate: 3.8% (Q4 2025 Provisional)
- Global Competitiveness: Ranked 3rd (IMD World Competitiveness Yearbook 2025)
- Currency: Hong Kong Dollar (HKD), Pegged to USD (~7.75–7.85)
- Time Zone: GMT+8
Strategic Business Hub
Hong Kong's appeal for international businesses in 2026 is reinforced by the government's new "Headquarters Economy" initiatives and New Capital Investment Entrant Scheme:
- Tax Efficiency: Low corporate tax rate of 16.5% (Only 8.25% for the first HKD 2 million of profit).
- Legal Certainty: The only Common Law jurisdiction in China, providing robust IP protection and contract enforcement.
- Free Market: No foreign ownership restrictions, no capital flow restrictions, and duty-free import status.
- GBA Integration: High-speed rail connectivity puts 86 million consumers in the Greater Bay Area within a 1-hour living circle.
Key Industries and Talent Pools (2026)
Hong Kong's economy is highly service-oriented (93% of GDP). In 2026, the city is transitioning from a traditional "Four Pillar" economy to one driven by Web3, Green Finance, and Biotech.
| Industry Sector | GDP Share* | Key 2026 Trends |
|---|
| Financial Services | ~23% | World's Largest Offshore RMB Hub (handling 76% of global payments). Big focus on Family Offices and Green Bonds. |
| Trade & Logistics | ~20% | Shift toward High-Value Air Cargo (Semiconductors/Electronics) and "Smart Port" automation. |
| Prof. Services | ~12% | Legal arbitration, management consulting, and ESG auditing for mainland firms. |
| Tourism | ~3.4% | Recovering but evolving from "Shopping" to "Mega Events" and "Cultural Tourism." |
| Innovation & Tech | Rising | New Growth Engine: Focused on AI, LifeHealth Tech (Biomedicine), and Advanced Manufacturing. |
Employment Laws and Regulations
Primary Employment Legislation: Hong Kong's employment framework is governed by the Employment Ordinance (Chapter 57), which provides comprehensive protection for employees while maintaining flexibility for employers.
Key Legislation (2025/2026):
- Employment Ordinance (Cap. 57): The primary labor law covering wages, leave, and termination.
- 2026 Update: The "418 Rule" (continuous contract definition) will be replaced by the "468 Rule" effective Jan 18, 2026. Employees working 68+ hours in four weeks will now qualify for statutory benefits.
- Minimum Wage Ordinance (Cap. 608): Sets the wage floor.
- Current Rate: HKD 42.10 per hour (Effective May 1, 2025).
- New Mechanism: Rates are now reviewed annually under a new formula-based mechanism (next adjustment May 2026).
- Employees' Compensation Ordinance (Cap. 282): Mandates insurance coverage for workplace injuries (including WFH arrangements).
- Personal Data (Privacy) Ordinance (Cap. 486): Strictly regulates the collection and transfer of employee personal data (Doxxing provisions strictly enforced).
- Occupational Safety and Health Ordinance (Cap. 509): Sets safety standards with penalties now raised to HKD 10 million for serious breaches.
Working Hours and Overtime
Hong Kong does not have statutory maximum working hours for adults. However, the Employment Ordinance mandates strict benefit thresholds based on the "Continuous Contract" definition, which was overhauled in 2026.
Standard Working Arrangements:
- Adult Limits: No statutory limit on daily/weekly hours (purely contractual).
- Standard Practice: 9:00 AM – 6:00 PM (Mon–Fri) with 1-hour lunch. Saturday "alternate weeks" are still common in some local firms.
- Rest Days: Mandatory 1 rest day (24 hours) per 7-day period.
- Overtime: Generally unpaid for professionals. Blue-collar roles may receive 1.5x, but this is not statutory.
Special Protections for Young Workers (Aged 15–17): Strict regulations apply to young persons employed in Industrial Undertakings (e.g., manufacturing, construction, transport):
- Maximum Hours: 8 hours/day, 48 hours/week.
- Prohibited Hours: No work allowed between 7:00 PM and 7:00 AM.
- Breaks: Mandatory break after 5 continuous hours.
Minimum Wage Requirements (2026)
Hong Kong's Statutory Minimum Wage (SMW) is reviewed annually under the new "Annual Review Mechanism."
| Category | Rate (Effective May 1, 2025) | Notes |
|---|
| Standard Employees | HKD 42.10 / hour | Increased from HKD 40.0. Applies to all hours worked. |
| Live-in Domestic Workers | HKD 5,100 / month | Minimum Allowable Wage (MAW). Plus free food or HKD 1,236 food allowance.* |
| Student Interns | Exempt | Must be part of a credited program. |
| Cap on Hour Recording | HKD 17,200 / month | Employers are exempt from tracking hours if wages exceed this cap. |
Probation Period Rules
Probation periods are standard but strictly regulated by the Employment Ordinance.
- Standard Duration: Typically 3 months (can be extended to 6 months by mutual agreement).
- Notice Requirements During Probation:
- First Month: No notice required (Immediate termination allowed by either party).
- After First Month: 7 days' notice (or payment in lieu) is the statutory minimum, unless the contract specifies a longer period.
- Benefits: Employees are entitled to statutory holidays and paid sick leave (if accumulated) during probation.
Employment Contract Requirements
While oral contracts are valid, a Written Employment Contract is mandatory for compliance transparency.
Critical 2026 Update: The "468 Rule" Effective January 18, 2026, employment contracts must account for the new "Continuous Contract" definition:
- Old Rule: 18 hours/week for 4 weeks.
- New Rule: An aggregate of 68 hours over 4 weeks.
- Impact: Casual employees hitting this threshold are legally entitled to Rest Days, Paid Sick Leave, and Annual Leave.
Termination and Severance Regulations
Hong Kong's termination costs have risen significantly following the Abolition of the MPF Offsetting Mechanism in May 2025.
Notice Periods (Standard)
| Employment Length | Notice Period |
|---|
| During Probation (Month 1) | None |
| During Probation (Month 2+) | 7 Days |
| Post-Probation | 1 Month (Standard) or as agreed in contract |
Severance & Long Service Payment (LSP)
Eligibility:
- Severance: 24+ months service + Redundancy.
- Long Service Payment: 5+ years service + Dismissal/Retirement/Death.
- Monthly Wage Cap: HKD 22,500 (Max payment per year of service = HKD 15,000).
- Total Payment Cap: HKD 390,000.
⚠️ Critical Policy Shift: MPF Offsetting Abolished
Effective May 1, 2025, employers can no longer use their MPF contributions to "offset" (pay for) Severance or Long Service Payments for service accrued after this date.
- Pre-May 2025 Service: Can still be offset using MPF.
- Post-May 2025 Service: Must be paid in Cash on top of MPF contributions.
How EOR Works in Hong Kong
Step-by-Step EOR Process
- EOR Partner Selection and Setup Your journey begins with choosing a reputable Employer of Record Hong Kong provider. Look for partners with:
- Established legal entities in Hong Kong
- Deep knowledge of local employment laws
- Robust compliance management systems
- Technology platforms for seamless employee management
- Job Role Definition and Compensation Planning Work with your EOR to structure competitive packages including:
- Market-rate salaries based on role and experience
- Mandatory benefits (MPF, statutory leave)
- Discretionary benefits (health insurance, flexible work arrangements)
- Compliance with minimum wage and overtime requirements
- Employment Contract Drafting and Legal Compliance Your EOR handles all legal documentation ensuring compliance with:
- Employment Ordinance requirements
- Immigration regulations for foreign workers
- Tax obligations and MPF registration
- Industry-specific regulations where applicable
- Employee Onboarding and Registration Comprehensive onboarding includes:
- Inland Revenue Department (IRD) tax registration
- Mandatory Provident Fund (MPF) scheme enrollment
- Work permit applications for foreign employees
- Employee handbook and policy orientation
- IT setup and access provisioning
- Ongoing Payroll and Benefits Management Your EOR manages all ongoing employment obligations:
- Monthly payroll processing in HKD
- Tax withholding and IRD submissions
- MPF contributions (5% employee, 5% employer)
- Statutory leave administration
- Annual MPF and tax filing requirements
- Compliance Monitoring and Updates Continuous compliance management includes:
- Monitoring regulatory changes
- Updating employment contracts as needed
- Managing employee relations issues
- Handling terminations and exits compliantly
Ensure Complete Compliance from Day One
Don't risk penalties or legal issues with improper employment practices. Our Hong Kong EOR experts handle every aspect of employment law compliance so you can hire with confidence.
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Hong Kong Payroll & Tax Requirements 2026
Hong Kong's tax system is territorial and low-rate, but compliance is strict. The tax year runs from April 1 to March 31.
Unlike many jurisdictions, employers do not withhold Salaries Tax monthly (except for departing employees); employees pay their own tax annually.
Personal Income Tax Rates (2024/25 & 2025/26)
Hong Kong salaries tax is calculated using two methods. You pay the lower of the two amounts.
1. Progressive Rate
Based on Net Chargeable Income (Total Income - Deductions - Allowances)
| Net Chargeable Income (HKD) | Tax Rate | Cumulative Tax (HKD) |
|---|
| First 50,000 | 2% | 1,000 |
| Next 50,000 (50,001 – 100,000) | 6% | 4,000 |
| Next 50,000 (100,001 – 150,000) | 10% | 9,000 |
| Next 50,000 (150,001 – 200,000) | 14% | 16,000 |
| Remainder (Over 200,000) | 17% | --- |
2. Standard Rate (Two-Tiered)
Based on Net Income (Total Income - Deductions). No allowances (e.g., child/married) are deducted.
- First HKD 5,000,000: 15%
- Remainder (Over HKD 5,000,000): 16%6
(Note: The 16% top tier was introduced effective from the 2024/25 tax year.)7
Tax Filing Deadlines
- Employer Returns (IR56B): Within 1 month of issue (Typically issued April 1, due by May 2).
- Individual Returns (BIR60):
- Standard Employees: Within 1 month of issue (Typically issued May 2, due by June 2).
- Sole Proprietors: Within 3 months of issue (Due by August 2).
- *Note: Electronic filing (eTAX) usually grants an automatic 1-month extension to these deadlines.*
Mandatory Provident Fund (MPF) 2026
The MPF system is Hong Kong's mandatory retirement savings scheme. In 2026, the system is fully digitized via the eMPF Platform, and the "Offsetting Mechanism" has been abolished.
| Feature | Requirement |
|---|
| Employee Contribution | 5% of relevant income. (Exempt if income < HKD 7,100). |
| Employer Contribution | 5% of relevant income. (Mandatory even if income < HKD 7,100). |
| Monthly Cap | HKD 1,500 each (Employer + Employee). Total HKD 3,000. |
| Income Thresholds | Min: HKD 7,100/month. Max: HKD 30,000/month. |
MPF Administration & Vesting:
- Vesting:
- Mandatory Contributions: 100% Immediate Vesting for both Employer and Employee portions. (Correction: Graduated vesting applies ONLY to "Voluntary" contributions over the 5% legal minimum.)
- Deadlines:
- Registration: Within 60 days of employment start.
- Contribution: On or before the 10th day of the following month.
- Management: Managed via the centralized eMPF Platform (rolled out 2024–2025) for real-time tracking.
⚠️ Critical 2026 Policy: No More "Offsetting" Since May 1, 2025, employers can no longer use their Mandatory MPF contributions to pay for Severance or Long Service Payments. This "Offsetting Mechanism" was abolished to protect employee retirement savings.
- Old Rule: Employer could withdraw their MPF share to pay severance.
- New Rule (2026): Severance must be paid in cash, leaving the MPF pot intact.
Payroll Processing Requirements (2026)
Payroll Frequency: Monthly payment is standard. Wages must be paid within 7 days after the end of the wage period.
Currency Requirements: Salaries must be paid in Hong Kong Dollars (HKD). Payment in other currencies is only permitted if expressly agreed upon in the employment contract and consented to by the employee.
Payroll Deductions & Tax Handling:
- No PAYE System: Unlike the UK or Australia, Hong Kong employers do not withhold income tax from monthly salaries.*
- Exception: Employers only withhold money if an employee is leaving Hong Kong permanently (filing Form IR56G).
- Employee Responsibility: Employees receive their full gross salary (minus MPF) and are responsible for paying their own tax annually to the Inland Revenue Department (IRD).
- Permissible Deductions:
- MPF Employee Contributions (Mandatory).
- Absence from work (strictly calculated).
- Damage to goods/equipment (Capped at HKD 300 per item).
Employer Contributions Summary:
| Contribution Type | Rate | Monthly Cap | Notes |
|---|
| MPF (Pension) | 5% | HKD 1,500 | Mandatory for employees aged 18–65 employed for 60+ days. |
| EC Insurance | Varies | N/A | Employees' Compensation Insurance is mandatory for all staff (Office ~0.5%, Manual ~2%+). |
| Employment Levy | N/A* | N/A | Note: The HKD 400/month levy applies only to the "Enhanced Supplementary Labour Scheme" (imported blue-collar labor). It does not apply to standard professional work visas (GEP/Top Talent). |
Employee Benefits and Leave Policies (2026)
Statutory Leave Entitlements
Annual Leave (Paid)
Hong Kong's statutory annual leave increases progressively with tenure.
| Years of Service | Annual Leave Days |
|---|
| Year 1 | 7 Days |
| Year 2 | 7 Days |
| Year 3 | 8 Days |
| Year 4 | 9 Days |
| Year 5 | 10 Days |
| Year 6 | 11 Days |
| Year 7 | 12 Days |
| Year 8 | 13 Days |
| Year 9+ | 14 Days (Maximum) |
Public Holidays 2026
There are two types of holidays in Hong Kong: Statutory Holidays (Mandatory for all) and General Holidays (Banks/Offices).
- 2026 Update: As of Jan 1, 2026, Easter Monday is now a Statutory Holiday, bringing the total to 14 Statutory Days.
| Date | Holiday | Type |
|---|
| Jan 1 (Thu) | New Year's Day | Statutory |
| Feb 17 (Tue) | Lunar New Year (Day 1) | Statutory |
| Feb 18 (Wed) | Lunar New Year (Day 2) | Statutory |
| Feb 19 (Thu) | Lunar New Year (Day 3) | Statutory |
| Apr 3 (Fri) | Good Friday | General (Bank) |
| Apr 4 (Sat) | Day Following Good Friday | General (Bank) |
| Apr 6 (Mon) | Easter Monday | Statutory (New) |
| Apr 7 (Tue) | Day Following Ching Ming* | Statutory |
| May 1 (Fri) | Labour Day | Statutory |
| May 25 (Mon) | Birthday of the Buddha* | Statutory |
| Jun 19 (Fri) | Tuen Ng Festival | Statutory |
| Jul 1 (Wed) | HKSAR Establishment Day | Statutory |
| Sep 26 (Sat) | Day After Mid-Autumn | Statutory |
| Oct 1 (Thu) | National Day | Statutory |
| Oct 19 (Mon) | Chung Yeung Festival* | Statutory |
| Dec 25 (Fri) | Christmas Day | Statutory |
| Dec 26 (Sat) | First Weekday After Christmas | General (Bank) |
Sick Leave
- Entitlement:
- Year 1: Accumulates 2 days per month worked.
- Year 2+: Accumulates 4 days per month worked.
- Maximum Accumulation: 120 days.
- Sickness Allowance Eligibility:
- Sick leave must be taken for 4 or more consecutive days.
- A valid medical certificate is required.
- Payment Rate: 80% of average daily wages (Not 100%).
- *Note: Many MNCs offer "Casual Sick Leave" (1–2 days at 100% pay) as a discretionary benefit, but the law only requires 80% for 4+ days.*
Maternity & Paternity Leave (2026)
Maternity Leave:
- Duration: 14 Weeks (Paid).
- Payment Rate:
- First 10 Weeks: 80% of average daily wages.
- Weeks 11–14: 80% of wages, subject to a cap of HKD 80,000 per employee.
- Job Protection: Unlawful to terminate a pregnant employee from the date of confirmed pregnancy.
Paternity Leave:
- Duration: 5 Days (Paid).
- Timing: Can be taken anytime from 4 weeks before expected delivery to 14 weeks after birth.
- Payment Rate: 80% of average daily wages.
Common Discretionary Benefits (Market Practice)
While not required by law, these benefits are standard for professional roles in Hong Kong:
- Health Insurance: "Top-up" medical insurance to cover private clinics (General Practitioner visits often cost HKD 400–800).
- 13th Month Salary: A guaranteed "Double Pay" bonus at Lunar New Year is common in local firms (though MNCs often prefer performance bonuses).
- Transportation: Allowances for staff living in the New Territories working in Central/Island side.
Work Permits and Visas (2026)
Foreign nationals require an employment visa to work in Hong Kong. As of January 17, 2025, the application process is 100% Digital---paper applications are no longer accepted for most categories.
Main Employment Visa Types
1. Top Talent Pass Scheme (TTPS) (Most Popular for 2026)
- Purpose: Fast-track for high earners and top university graduates (No job offer required initially).
- Categories:
- Cat A: Annual income >HKD 2.5 million.
- Cat B: Top 100 University degree + 3 years experience.
- Cat C: Top 100 University degree (Limited quota).
- Duration: 24 months (Unconditional stay).
- Renewal: Must secure employment/business in HK before visa expiry.
2. General Employment Policy (GEP)
- Purpose: Skilled professionals and managers (Standard Work Visa).
- Requirements:
- Confirmed job offer from a Hong Kong company.
- Salary/Benefits commensurate with market rates.
- "Genuine Vacancy" (Proof that local recruitment failed, unless on Talent List).
- Duration: Typically 2 years or 3 years (depending on contract).
3. Admission Scheme for Mainland Talents (ASMTP)
- Purpose: Specifically for Mainland Chinese professionals.
- Requirements: Same as GEP but requires employer to be a local sponsor.
- Duration: Standard "3-3-2" year pattern or aligned with contract.
Work Permit Application Process (Digital Only)
Since Jan 2025, the "e-Visa" system is mandatory.
Required Documentation:
- Applicant: Digital Form ID 990A, Passport, Academic proofs.
- Employer: Employment Contract, Business Registration (BR), Financial Report.
- Process:
- Online Submission: Via Immigration Dept portal.
- Payment: Online (Credit Card/AliPay/WeChat Pay).
- e-Visa Download: PDF with QR code (No physical sticker).
Timeline:
- Standard: 4 – 6 weeks (Immigration Department target).
- TTPS: 2 – 4 weeks (Accelerated).
Visa Fees (New 2025 Structure)
The flat fee was abolished in 2025. There are now two separate fees:
| Fee Type | Cost (HKD) | Notes |
|---|
| Application Fee | HKD 600 | Non-refundable. Paid at submission. |
| Issuance Fee | HKD 1,300 | Paid after approval (Visas >180 days). |
| Short Term Fee | HKD 600 | For visas valid <180 days. |
| Extension Fee | HKD 1,300 | For renewals >180 days. |
Dependant Visas (Family)
- Eligibility: Spouse and unmarried children under 18.
- Spouse Work Rights: Automatic. Spouses of GEP, ASMTP, and TTPS holders receive an "Unconditional Stay" and do not need separate permission to work or start a business.
- Processing: Usually processed concurrently with the main visa (4–6 weeks).
Visa Processing Made Simple
Navigating Hong Kong's visa requirements can be complex. Our immigration specialists handle the entire work permit process, ensuring quick approvals and proper documentation for your team.
Streamline Your Visa Process →
Hiring and Onboarding Process
Recruitment Best Practices
Talent Sourcing Strategies:
- Professional networks: LinkedIn, industry associations
- Local job boards: JobsDB, CTgoodjobs, Recruit.com.hk
- Recruitment agencies: Specializing in your industry
- University partnerships: Graduate recruitment programs
Cultural Considerations:
- Relationship building (Guanxi): Personal connections valued
- Face-saving: Respectful communication important
- Hierarchy respect: Clear reporting structures expected
- Work-life balance: Increasingly important to younger workforce
Background Check Requirements
Standard Verification:
- Educational qualifications authentication
- Employment history verification
- Professional license validation
- Criminal background check (if applicable)
- Reference checks from previous employers
Industry-Specific Checks:
- Financial services: SFC licensing, credit checks
- Healthcare: Professional registration verification
- Education: Teaching qualification verification
Employment Contract Essentials
Key Contract Clauses:
- Probationary period: Duration and terms
- Confidentiality agreements: Protecting company information
- Non-compete clauses: Limited enforceability in Hong Kong
- Intellectual property: Ownership of work-related creations
- Termination procedures: Notice periods and severance
Local Customizations:
- Red packet (lai see) policy: Chinese New Year bonuses
- Flexible holiday arrangements: Accommodating different cultural celebrations
- Language requirements: Specifying English/Chinese proficiency needs
Onboarding Procedures
First Week Priorities:
- IRD tax file setup: Employer tax obligations
- MPF scheme registration: Retirement fund enrollment
- Work permit completion: For foreign employees
- Company orientation: Culture, policies, procedures
- IT setup: Equipment, access, security protocols
Cultural Integration:
- Buddy system: Pairing with experienced local colleague
- Local customs training: Business etiquette and practices
- Language support: Cantonese/Mandarin lessons if needed
- Networking opportunities: Industry events and professional groups
Termination and Employee Exit
Legal Termination Grounds
Valid Reasons for Dismissal:
- Misconduct: Serious breaches of conduct or company policy
- Poor performance: Consistently failing to meet job requirements
- Redundancy: Economic or operational necessity
- Incapacity: Inability to perform duties due to illness/injury
- Statutory restrictions: Legal disqualification from position
Notice Periods by Employment Length
| Employment Duration | Notice Period |
|---|
| Less than 1 month | No notice required |
| 1 month – 2 years | 1 month |
| 2+ years | 1 month (minimum) |
Payment in Lieu: Employers may pay salary instead of requiring notice period service.
Severance Pay Calculations
Severance Payment Formula: Payment = (2/3 × Last month's wages OR HKD 22,500, whichever is less) × Years of service
Example Calculations:
Employee A: 3 years service, HKD 30,000/month salary
- Calculation: (2/3 × 30,000) × 3 = HKD 60,000
Employee B: 5 years service, HKD 40,000/month salary
- Calculation: (2/3 × 40,000 = 26,667, but capped at 22,500) × 5 = HKD 112,500
Wrongful Termination Protections
Protected Circumstances:
- Pregnancy or maternity leave
- Work-related injury during recovery
- Trade union membership or activities
- Making complaints about employment violations
- Jury service or other civic duties
Remedies for Wrongful Dismissal:
- Reinstatement: Return to same position
- Compensation: Up to HKD 150,000 plus severance pay
- Legal costs: Recovery of reasonable legal expenses
Exit Procedure Compliance
Mandatory Exit Steps:
- Final pay calculation: Including outstanding leave, bonuses
- MPF transfer arrangements: Moving funds to new scheme
- Tax clearance: Final IRD submissions
- Return of company property: Equipment, ID cards, access cards
- Reference letter provision: Employment confirmation document
Entity Setup vs. EOR Comparison
Entity Establishment Requirements
Hong Kong Company Setup:
- Minimum capital: HKD 1 (no minimum paid-up capital)
- Directors: At least 1 (can be individual or corporate)
- Company secretary: Must be Hong Kong resident or qualified company
- Registered office: Physical Hong Kong address required
- Business registration: With Companies Registry and IRD
Setup Timeframes:
- Standard incorporation: 1-2 weeks
- Business registration: Additional 1 week
- Bank account opening: 2-4 weeks
- Total setup time: 4-7 weeks
Cost Comparison Analysis
Entity Setup Costs:
| Expense Category | Annual Cost (HKD) |
|---|
| Company incorporation | 1,720 (one-time) |
| Business registration | 2,000 |
| Registered office | 12,000–24,000 |
| Company secretary | 6,000–15,000 |
| Audit and compliance | 8,000–20,000 |
| Accounting services | 12,000–30,000 |
| Total Annual | 40,000–90,000+ |
EOR Service Costs:
- Monthly fee: From $298/employee/month
- Setup fee: Usually waived or minimal
- All-inclusive: Payroll, compliance, benefits administration
Decision-Making Framework
Choose Entity Setup When:
- Long-term commitment: 5+ year market presence planned
- Multiple employees: 10+ staff members
- Local revenue generation: Significant Hong Kong-sourced income
- Investment requirements: Need for local banking and financing
- Full control desired: Direct management of all operations
Choose EOR When:
- Market testing: Exploring Hong Kong potential
- Small teams: 1-10 employees initially
- Speed to market: Need immediate market entry
- Compliance concerns: Prefer expert management
- Cost efficiency: Lower initial investment required
EOR Advantages and Limitations
EOR Benefits:
- Rapid deployment: Hire within 1-2 weeks
- Compliance assurance: Expert legal and tax management
- Cost predictability: Fixed monthly fees
- Risk mitigation: Provider assumes legal liabilities
- Scalability: Easy to adjust workforce size
EOR Limitations:
- Ongoing costs: Higher long-term expense for large teams
- Less control: Provider manages employment relationship
- Dependency: Reliance on third-party service
- Limited customization: Standardized processes and benefits
Make the Right Choice for Your Business
Not sure whether to set up an entity or use EOR services? Our Hong Kong expansion specialists can analyze your specific needs and recommend the optimal approach for your business goals.
Get Professional Consultation →
Choosing an EOR Provider
Selection Criteria
Local Expertise and Track Record:
- Years operating in Hong Kong: Minimum 3-5 years recommended
- Client testimonials: References from similar companies
- Compliance history: No major violations or penalties
- Local team: On-ground Hong Kong-based staff
Technology Platform Capabilities:
- Employee self-service portals: Access to pay slips, leave balances
- Integration capabilities: Connecting with your HRIS/accounting systems
- Reporting features: Real-time analytics and compliance reporting
- Mobile accessibility: Apps for employee and manager use
Compliance Management:
- Legal expertise: In-house employment law specialists
- Regular updates: Proactive notification of regulation changes
- Audit trails: Comprehensive documentation for inspections
- Insurance coverage: Professional indemnity and employment practices
Customer Support Quality:
- Dedicated account management: Single point of contact
- Response times: SLA for query resolution
- Language support: English and Chinese capabilities
- Local business hours: Hong Kong time zone coverage
Pricing Transparency
Fee Structure Models:
- Percentage-based: 6-15% of gross salary
- Fixed monthly fee: Set amount per employee
- Hybrid model: Base fee plus percentage
Additional Costs to Consider:
- Setup fees: One-time implementation charges
- Visa processing: Work permit application support
- Termination fees: Exit process management
- Extra services: Additional HR support beyond standard offering
Ready to Launch Your Hong Kong Expansion?
Expanding into Hong Kong doesn't have to be overwhelming. With the right Employer of Record Hong Kong partner, you can access one of Asia's most dynamic markets while avoiding the complexity of entity setup, employment law compliance, and administrative burdens.
Throughout this guide, we've covered the essential elements of hiring employees in Hong Kong successfully:
- Employment Law Mastery: Understanding Hong Kong employment laws, from the Employment Ordinance requirements to MPF contributions and statutory leave entitlements, ensures your expansion remains compliant from day one.
- Streamlined Operations: Professional EOR Hong Kong services handle everything from payroll services Hong Kong and work permits Hong Kong to employment compliance Hong Kong, allowing you to focus on business growth rather than administrative tasks.
- Strategic Advantages: Whether you're testing the market with a small team or scaling rapidly, an Employer of Record provides the flexibility to hire employees in Hong Kong without the long-term commitments and costs of entity establishment.
- Risk Mitigation: From tax obligations and MPF management to termination procedures and cultural integration, expert global employment Hong Kong support protects your business while ensuring positive employee experiences.
The question isn't whether Hong Kong offers tremendous opportunities for your business growth---it's whether you're ready to seize them efficiently and compliantly.
AYP Group's Hong Kong Employer of Record services eliminate every barrier between you and your next great hire. Our local experts handle the complex regulatory landscape, cultural nuances, and administrative requirements that can derail expansion efforts. With our support, you can:
- Start hiring qualified Hong Kong talent within weeks, not months
- Ensure complete compliance with local employment regulations
- Access competitive benefits packages that attract top talent
- Scale your team up or down as market conditions change
- Focus entirely on your core business while we manage the employment complexities
Don't let administrative complexity or compliance concerns delay your Hong Kong market entry. Your competitors are already building their presence---make sure you're not left behind.
Contact AYP Group today and discover how our Employer of Record Hong Kong services can transform your expansion timeline from months to weeks, your compliance risk from high to zero, and your operational complexity from overwhelming to effortless.
