Setting Up an Employment Agency
- a22162
- Mar 31, 2024
- 4 min read
Updated: Sep 8
Setting Up an Employment Agency
Launching an employment agency in Hong Kong involves securing licenses and registering your business. Here's a general roadmap:
1. Company Registration:
Choose a business structure (sole proprietorship, partnership, limited company).
Register your business with the Inland Revenue Department (IRD) to obtain a Business Registration Certificate (BRC).
If you opt for a limited company, register with the Companies Registry (CR) for a Certificate of Incorporation.
2. Employment Agency License:
Apply for an Employment Agency License from the Hong Kong Labour Department. You'll need your BRC and (for limited companies) Certificate of Incorporation.
Nominate a person as the agency operator who will oversee daily operations.
Ensure the operator has a clean criminal record.
3. Additional Steps:
Pick a suitable business name and get approval from the Labour Department.
Find a commercial office space.
Set up accounting and bookkeeping practices.
Detailed Information and Application Forms
The Hong Kong Labour Department is the primary source for detailed information and application forms for an Employment Agency License. Here's how to access them:
Website: Visit the Labour Department's Employment Agencies Administration (EAA) website on licensing: https://www.eaa.labour.gov.hk/en/licensing.html
Application Form: The downloadable application form titled "Employment Agency Licence Application" (EA-LD184S.pdf) can be found on the EAA website.
Key Points from the Website:
License Requirement: The website clarifies that operating an employment agency in Hong Kong requires a license or a Certificate of Exemption (CoE) issued by the Commissioner for Labour.
Name Approval: Before submitting the application, propose your agency's name and phone number to the EAA for approval via email (ea-ee@labour.gov.hk) or fax (2115 3756).
Validity: The license is valid for one year and needs renewal two months before expiry.
Fee
A licence fee of HK$2,000 and a duplicate licence fee of HK $385 each (if applicable) is payable after the application has been approved
Cost for Employment Agency License Application Handling
The professional fees for handling an Employment Agency License application in Hong Kong can vary, but based on the scope of work, here is a fee structure and an overview of what you can expect.
Rate Range
The professional fees for this type of service generally range from HK$5,000 to HK$20,000 or more. This wide range is due to several factors:
Service Scope: The cost will be higher if it's a bundled service that includes company formation and other related services.
Complexity: The fee can increase for more complex cases, such as a foreign individual being the "nominated operator" and requiring visa assistance.
Fee Structure Breakdown
Bestar's fee is typically a single project-based fee that covers a defined set of services. Here is what our package includes and the associated costs.
1. Basic Package: Employment Agency License Application Only
This is for a business that has already completed its company formation and has all the necessary documents and a physical office space.
What's included:
Consultation on Labour Department requirements and procedures.
Review and preparation of all application forms (EA1 and supplementary forms).
Guidance on the "nominated operator" requirements (clean criminal record, residency/visa status).
Liaison with the Labour Department on your behalf.
Submission of the application and all supporting documents.
Fee: HK$5,000 − HK$8,000 (one-time fee).
2. Standard Package: Company Formation & License Application
This is the most common package for new businesses, as company registration is a prerequisite for the license application.
What's included:
All services from the Basic Package.
Company Formation:
Assistance with company name search and approval.
Preparation and filing of incorporation documents with the Companies Registry.
Obtaining the Certificate of Incorporation and Business Registration Certificate.
Acting as the first company secretary and providing a registered office address for the first year.
Proposed Fee: HK$8,000 − HK$15,000 (one-time fee).
Note: This fee is for the professional service provider's work and does not include the mandatory government fees for company registration (approx. HK$2,000 for Business Registration Certificate and HK1,720 for Certificate of Incorporation).
3. Premium Package: All-Inclusive Service
This package is for individuals or companies who want comprehensive support, especially if they are not based in Hong Kong.
What's included:
All services from the Standard Package.
Visa Consultation and Handling: Assistance with employment visa applications for the nominated operator or other key staff, including document preparation and submission to the Immigration Department.
Bank Account Opening Assistance: Guidance and assistance with the complex process of opening a corporate bank account in Hong Kong.
Post-Licensing Compliance Advice: Consultation on ongoing compliance with the Labour Department's Code of Practice, including record-keeping and ethical standards.
Fee: HK$15,000 − HK$20,000+ (one-time fee, not including visa application government fees).
Important Considerations
Official Government Fees: The above professional fees do not include the official government license fee of HK$2,000 for the Employment Agency License, nor the fees for business registration and visa applications. These are paid directly to the government.
Resources:
For detailed information and application forms, refer to the Hong Kong Labour Department website or consult a business advisor in Hong Kong. Here are some resources to get you started:
Hong Kong Labour Department Licensing of employment agency
How Bestar can Help
Here's a breakdown of Bestar's area of expertise in setting up your employment agency in Hong Kong:
General Business Registration: We offer general advice on choosing a business structure (sole proprietorship, partnership, limited company) and assist with registering your business with the Inland Revenue Department (IRD) to obtain a Business Registration Certificate (BRC).
Employment Agency License Application: Obtaining the license is a crucial step and requires expertise in employment agency regulations. Bestar handles this process. Our business advisors in Hong Kong have a proven track record of helping clients with the Employment Agency License application.
Understanding Regulations: Bestar can help you understand relevant regulations for employment agencies in Hong Kong, including labor laws, data privacy, and tax implications.
Accounting and Bookkeeping: Setting up accounting practices is crucial, and Bestar can help establish a system for recording your financial transactions.
Taxation Advice: We can advise on tax regulations relevant to employment agencies in Hong Kong.
Leverage Bestar for initial business setup guidance and understanding regulations, and the Employment Agency License application.
Contact Bestar: Reach out to us to inquire about our services for setting up an employment agency. We can assist you with the entire process, including the Employment Agency license application.
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