Master EOR Services Agreement

Master EOR Services Agreement

Master EOR Services Agreement

Here is a comprehensive draft for a Master Employer of Record (EOR) Services Agreement governed by Hong Kong law. This document is structured to protect while maintaining transparent, professional terms with your client.

MASTER EMPLOYER OF RECORD (EOR) SERVICES AGREEMENT

THIS AGREEMENT is made on this ______ day of ________________, 2026 (the "Effective Date").

BETWEEN:

(1) BESTAR CONSULTING LIMITED, a company incorporated under the laws of Hong Kong, with its registered office located at [Flat D, 20/F, Eton Building, 288 Des Voeux Road Central, Sheung Wan, Hong Kong (hereinafter referred to as the "Provider" or "Bestar"); and

(2) [CLIENT COMPANY NAME], a company incorporated under the laws of [Client Country], with its registered office located at [Client Address] (hereinafter referred to as the "Client").

Each of the Provider and the Client may be referred to individually as a "Party" and collectively as the "Parties".

RECITALS:

A. The Provider provides corporate secretary, accounting, HR, and Employer of Record (EOR) services in Hong Kong.

B. The Client desires to retain the Provider to act as the legal Employer of Record for certain personnel designated by the Client in Hong Kong, and the Provider agrees to perform such services under the terms and conditions set forth herein.

IT IS MUTUALLY AGREED AS FOLLOWS:

1. DEFINITIONS AND INTERPRETATION

• "Assigned Employee" means any individual selected by the Client and employed legally by Bestar in Hong Kong to perform services solely for the benefit of the Client.

  
  

• "Employment Contract" means the local employment agreement entered into between Bestar and an Assigned Employee, compliant with the Hong Kong Employment Ordinance (Cap. 57).

  
  

• "Management Fee" means the monthly administrative fee payable by the Client to Bestar for performing the EOR services.

  
  

• "Pass-Through Costs" means all direct employment costs required by Hong Kong law or agreed with the Client, including gross salary, allowances, Mandatory Provident Fund (MPF) employer contributions, Employees' Compensation Insurance premiums, and severance or termination payouts.

2. SCOPE OF SERVICES

2.1 Legal Employment: Bestar shall act as the legal employer of the Assigned Employee in Hong Kong. Bestar will execute an Employment Contract with the Assigned Employee reflecting the commercial terms (salary, role, benefits) provided by the Client.

2.2 HR & Payroll Administration: Bestar shall manage the monthly payroll processing, issue payslips, administer statutory MPF contributions, and handle annual employer tax returns (Forms 56B/56F/56E) with the Inland Revenue Department (IRD).

2.3 No Day-to-Day Control: The Client retains sole responsibility for the day-to-day management, direction, operational assignments, and work performance evaluation of the Assigned Employee.

3. CLIENT OBLIGATIONS & COMPLIANCE

3.1 Right to Work: The Client must ensure that any designated Assigned Employee possesses the legal right to work in Hong Kong before the commencement of employment.

3.2 Workplace Safety: The Client shall ensure that the work environment provided to the Assigned Employee satisfies all health and safety requirements mandated under the Occupational Safety and Health Ordinance (Cap. 509) of Hong Kong.

3.3 No Employer Representation: The Client acknowledges that the Assigned Employee has no authority to legally bind Bestar or sign contracts on behalf of Bestar.

4. FEES, INVOICING, AND PAYMENT

4.1 Fee Structure: The Client shall pay Bestar according to the pricing outlined in Schedule A of this Agreement, consisting of:

• The fixed monthly Management Fee per employee.

  
  

• All actual Pass-Through Costs.

4.2 Invoicing Timeline: Bestar shall issue a monthly invoice to the Client on or around the [e.g., 15th] day of each month for the upcoming payroll cycle and the Management Fee.

4.3 Payment Terms: To ensure timely statutory payroll processing under Hong Kong law, the Client must settle all invoices within [e.g., 5-7] business days from the invoice date via bank transfer in [HKD/USD].

4.4 Payroll Deposit: Bestar reserves the right to request a refundable deposit equivalent to one (1) month of total loaded employment costs per Assigned Employee prior to contract execution, to safeguard against payment default.

5. TERM AND TERMINATION

5.1 Agreement Term: This Master Agreement commences on the Effective Date and shall remain in effect until terminated by either Party giving thirty (30) days' prior written notice.

5.2 Employee Termination: If the Client wishes to terminate the assignment of a specific Assigned Employee, the Client must notify Bestar in writing, adhering to the statutory notice periods outlined in the individual’s Employment Contract or the Hong Kong Employment Ordinance.

5.3 Indemnity for Termination Costs: The Client shall fully reimburse and indemnify Bestar for any statutory severance, long service payments, or payment-in-lieu-of-notice required under Hong Kong law upon the termination of an Assigned Employee, provided such termination was requested or caused by the Client.

6. CONFIDENTIALITY AND DATA PROTECTION

6.1 Confidentiality: Both Parties agree to keep all business, commercial, and financial information disclosed during this engagement strictly confidential.

6.2 Data Privacy: Both Parties shall comply with the Personal Data (Privacy) Ordinance (Cap. 486) of Hong Kong regarding the collection, processing, and transfer of the personal data of Assigned Employees.

7. LIMITATION OF LIABILITY AND INDEMNITY

7.1 Operational Liability: Because operational control rests entirely with the Client, Bestar shall not be held liable for any acts, omissions, negligence, misconduct, or breach of contract committed by an Assigned Employee during the course of their daily duties.

7.2 Indemnity: The Client agrees to indemnify and hold harmless Bestar against any claims, losses, liabilities, or expenses arising from the operational direction of the Assigned Employee or a breach of this Agreement by the Client.

8. GOVERNING LAW AND JURISDICTION

This Agreement, and any dispute or claim arising out of or in connection with it, shall be governed by and construed in accordance with the laws of Hong Kong. The Parties irrevocably agree that the courts of Hong Kong shall have exclusive jurisdiction to settle any disputes.

IN WITNESS WHEREOF, the Parties hereto have executed this Master EOR Services Agreement as of the date first written above.

Signed for and on behalf of BESTAR CONSULTING LIMITED:

Signature: ___________________________

Name: Roger

Title: Managing Director

Date: ___________________________

Signed for and on behalf of [CLIENT COMPANY NAME]:

Signature: ___________________________

Name: ___________________________

Title: ___________________________

Date: ___________________________

SCHEDULE A: FEES AND COMMERCIAL TERMS

1. Management Fees:

• Monthly EOR Management Fee: HKD 3,900 / USD 500 per Assigned Employee per month.

  
  

• Setup / Onboarding Fee: A one-time fee of USD 150 / HKD 1,150 per employee.

2. Pass-Through Employment Costs (Hong Kong Statutory Rates):

• Mandatory Provident Fund (MPF): 5% of gross monthly income, capped at HKD 1,500 per month per employer contribution.

  
  

• Employees' Compensation Insurance: Reimbursed at actual cost (estimated at 0.5% of gross salary for office-based workers).

  
  

• Other Expenses: Any expenses, bonuses, or local allowances approved by the Client will be billed at actual cost.

How Bestar Hong Kong Can Help: The Definitive Compliance & EOR Guide (2026)

Expanding or maintaining a corporate presence in Hong Kong requires navigating a complex environment of strict deadlines, statutory rules, and digital transformations. Whether your company needs to resolve its annual corporate governance or deploy rapid talent acquisition without establishing a local subsidiary, knowing how to leverage structured corporate services is critical to sustaining regional growth.

As an established, one-stop professional corporate services provider in the Sheung Wan financial district, Bestar Consulting Limited bridges the gap between traditional administrative operations and agile, tech-driven business solutions.  

Bestar Asia

What is Bestar Hong Kong and How Does It Support Businesses?

Bestar Hong Kong is a licensed Trust or Company Service Provider (TCSP) and a comprehensive corporate services firm that provides integrated statutory compliance, accounting, auditing, taxation, and Employer of Record (EOR) services on a single platform. By eliminating data gaps between siloed vendors, Bestar transitions mid-market entities, small-to-medium enterprises (SMEs), and global brands away from fragmented corporate administrative setups into synchronized, cloud-based workflows.  

1. Navigating Hong Kong Company Secretarial Compliance

Under Cap. Under section 622 of the Hong Kong Companies Ordinance, every private limited company must appoint a resident or a licensed corporate body as its official Company Secretary. This mandatory appointment acts as your primary operational link to the Companies Registry (CR).  

How Bestar Addresses Critical Governance Milestones:

• Statutory Officer Appointment: Bestar fulfills the requirement by serving as your named, licensed Company Secretary to oversee corporate registers and ongoing governance.  

  
  

• Annual Return Maintenance (Form NAR1): Bestar drafts, reviews, and files the mandatory Annual Return within the legal 42-day window from your company’s incorporation anniversary, protecting your entity from escalating fines.  

  
  

• Seamless Corporate Migrations: For companies switching from a bare-minimum agency, Bestar manages the structural transition by executing the necessary corporate resolutions and submitting official registry updates (such as Form ND2A) for a flat setup fee.  

  
  
  
  

2. Managing Audits & Inland Revenue Department (IRD) Tax Requirements

Hong Kong operates a competitive, two-tier Profits Tax regime (8.25% on the first HKD 2 million of assessable profits and 16.5% thereafter) alongside a territorial tax system with zero GST/VAT or capital gains tax. However, accessing these benefits requires rigorous financial reporting.  

Every Hong Kong limited company must have its financial statements audited annually by an independent, licensed Certified Public Accountant (CPA) prior to presentation at its Annual General Meeting (AGM) or submission to the IRD.  

[Cloud-Based Bookkeeping / Ledgers] 
               │
               ▼
[Independent Risk-Based CPA Audit] 
               │
               ▼
[Simultaneous PTR & Audited Accounts Filing to IRD]

Bestar's Financial Statement & Audit Capabilities:

• Digital Accounting Integration: Bestar moves organizations away from traditional "shoe-box" accounting toward digital ledgers using cloud-based transaction mapping tailored to Hong Kong Financial Reporting Standards (HKFRS).  

  
  

• Risk-Based Audit Framework: Utilizing automated tools such as Optical Character Recognition (OCR) and direct bank data feeds, Bestar's audit approach targets high-value transactions to ensure rapid file processing (typically 2 to 4 weeks) while ensuring defense readiness against IRD risk screening.  

  
  

• Aligned Tax Submissions: Bestar coordinates the direct filing of your audited financial statements alongside your annual Profits Tax Return (PTR) to secure appropriate tax exemptions and structural extensions.  

3. Rapid Market Expansion via Employer of Record (EOR) Services

Setting up a new legal corporate entity is not always the most efficient path to onboarding immediate regional talent. Bestar Hong Kong’s Employer of Record (EOR) services enable international organizations to hire distributed workforces legally and compliantly inside Hong Kong within 3 to 5 business days, eliminating corporate overhead.

Full-Lifecycle HR & Payroll Execution:

• Compliant Employment Contracts: Bestar structures and issues localized employment contracts that align strictly with the Hong Kong Employment Ordinance, protecting against wrongful termination risks.  

  
  

• Statutory MPF & Insurance Processing: Bestar manages the enrollment and processing of Mandatory Provident Fund (MPF) schemes (5% employer contribution, capped at HKD 1,500/month) and structures statutory Employees’ Compensation Insurance to cover workplace injuries.  

  
  

• Annual Tax Filing: Bestar prepares and files individual annual employer tax returns (such as Forms 56B, 56E, or 56F) directly with the IRD, eliminating administrative burdens for your international HR department.

Summary Comparison: Traditional Setup vs. Bestar Integrated Framework

Corporate Requirement	Traditional Fragmented Approach	Bestar Integrated Framework
Data Continuity	Manual hand-offs between separate bookkeeping firms and auditors cause data gaps.	Bookkeeping, payroll, and corporate tax calculations are managed on a single integrated platform.
Onboarding Experience	Physical document signing, mail courier delays, and slow corporate registry processing.	Streamlined digital onboarding via automated software, removing geographic barriers entirely.
Regulatory Risk Protection	Missed deadlines or poorly structured audits can lead to bank account freezes or IRD fines.	Proactive compliance monitoring combined with automated transaction mapping to minimize risk.

Frequently Asked Questions

What are the consequences of late statutory filings in Hong Kong?

Failing to submit your Annual Return (Form NAR1) to the Companies Registry within 42 days results in statutory penalties that escalate sharply up to HKD 3,480, alongside potential court fines reaching up to HKD 50,000. For tax filings, late submission of a Profits Tax Return can lead to penalties starting at HKD 10,000, estimated tax assessments, or an official court summons.  

How long does an independent corporate audit typically take?

For an active Small and Medium Enterprise (SME), a standard statutory audit takes approximately 2 to 4 weeks from the moment all source documents (general ledgers, bank statements, invoice logs) are completely organized and uploaded into our platform.  

Is an audit mandatory even if a Hong Kong company is dormant or small?

Yes. Under the Hong Kong Companies Ordinance (Cap. 622), there is no automatic small-business exemption that completely waives the statutory audit requirement. While smaller private companies can apply for simplified financial reporting standards, the financial accounts must still be audited by a licensed independent CPA.  

Where is Bestar Hong Kong physically located?

If you intend to visit our offices or transmit physical governance paperwork directly, our firm is located in the heart of the Sheung Wan financial hub:  

• Physical Address: Flat D, 20/F, Eton Building, 288 Des Voeux Road Central, Sheung Wan, Hong Kong.

  
  

• Direct Office Phone: +852 3565 1861.  

  
  

• Standard Operating Hours: Monday to Friday, 9:00 AM – 6:00 PM (Closed on Saturdays, Sundays, and public holidays).  

  
  
  
  

Contact Bestar Hong Kong Today

Secure your company's operational compliance, optimize your domestic corporate tax structure, or launch an agile distributed workforce with our local team.

Ready to transition your corporate secretary infrastructure or clear your auditing backlogs? Contact the team directly at +852 3565 1861 or visit www.bestar-hk.com to receive a transparent, fixed-fee quote tailored precisely to your transaction volumes.