Acumen International stands with Ukraine and the country's people. Join us

Employ Candidates Compliantly in Hong Kong

Get Express Quote
  1. Overview: Hong Kong
  2. Contractor vs. Employee: Which Is Better?
  3. Global HR Compliance
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Global PEO and Payroll
  7. Global Payroll Calculator
Other counrtries

Global Employer of Record in Hong Kong

Whether you are a startup eyeing rapid expansion or an established company looking to tap into new markets, a Global EOR offers a quick, compliant, and cost-effective route to achieving your global ambitions. By bypassing the need for local entities and handling cross-border compliance intricacies, Global EOR services like those offered by Express Global Employment enable you to focus on what truly matters: driving your business forward.

What is an Employer of Record (EOR)?

At its core, an Employer of Record (EOR) is a third-party organisation that hires employees on behalf of your company. In this arrangement, the EOR handles all administrative, legal, and compliance matters related to employment, allowing your company to focus on its core competencies.

Global Employer of Record (EOR)

A Global EOR is an organisation that serves as the official employer for your international employees, handling all local legal, tax, and HR responsibilities across multiple jurisdictions, including Hong Kong. They manage the complexities of global employment, like payroll administration and employment tax filing, freeing up businesses to focus on their strategic objectives.

Global EORs are instrumental in helping businesses accelerate their global expansion, offering a quick, compliant, and efficient alternative to establishing legal entities in new markets.

The traditional route to global expansion, setting up legal entities, is increasingly sidelined in favour of partnering with a Global EOR. The benefits of this model are clear: a significant reduction in expenses, increased speed to market, and improved risk management.

Indeed, the advantages extend beyond the financial. Global EORs also enable businesses to attract and retain top talent in new markets, offering compliant benefits and payroll without the company navigating complex employment laws in Hong Kong.

For businesses operating globally across multiple jurisdictions, choosing a Global EOR provider is an intelligent alternative to legal entity setup and a strategic imperative. Companies can focus on their core operations, knowing that their global HR, tax, and legal compliance are in safe hands in Hong Kong.

Comprehensive Immigration Support across Jurisdictions by a Global EOR

The ability to move quickly and adapt is essential in today’s competitive global landscape. A Global EOR provides the framework for rapid market entry and tackles the often daunting challenges associated with immigration and labour law compliance. By removing these burdens, companies can concentrate on business development and growth, thereby gaining a competitive edge in the global market.

One of the standout features of using a Global EOR is the comprehensive immigration support offered. While local laws on visas and work permits can vary drastically from country to country, a Global EOR provides a centralized resource for navigating these complexities.

Visa Assistance: Whether it’s about understanding the type of visa required or the specifics of the application process, a Global EOR can offer guidance every step of the way.

Work Permit Sponsorship: A Global EOR can act as the sponsoring entity in countries requiring work permits, further streamlining the employment process. This eliminates the need for a local entity to sponsor foreign talent, cutting down on red tape and expediting timelines.

Immigration and Labour Law Compliance: Beyond just hiring, a Global EOR ensures ongoing compliance with local immigration and labour laws, thereby minimizing potential legal issues or penalty risks. This comprehensive oversight is a major boon for companies that lack in-house expertise in these areas or operate across multiple jurisdictions with varying rules and regulations.

Quick and Cost-Effective Global Expansion

No Need for Local Incorporation: One of the most substantial advantages of using a Global EOR over establishing your own legal entity is the time and cost saved on incorporation. Setting up a legal entity involves not just a significant expense but also a great deal of administrative legwork, not to mention ongoing operating costs and responsibilities.

Streamlined Compliance: With a Global EOR, you don’t have to become an expert on the employment laws, tax codes, or compliance mandates of each country you operate in. This service takes care of it for you, providing ease you won’t get by operating through your local entity.

Resource Optimisation: Utilising a Global EOR service allows you to allocate your resources more efficiently. Without needing in-house legal and HR departments in each country, you can focus your capital and human resources on growth and revenue-generating activities.

Get Express Quote

All-In-One Global Employment Solution in Hong Kong

Expanding into Hong Kong—a bustling financial centre with an attractive business environment—requires a nuanced understanding of local laws, regulations, and culture. Enter the Global Employer of Record (EOR) solution, a service model designed to simplify global expansion. Specifically, companies like Express Global Employment offer tailored EOR services to mitigate the challenges of moving into complex jurisdictions like Hong Kong.
Express Global Employment provides comprehensive services for building a global team, handling all aspects from hiring to compliance. Here’s what a Global Employer of Record can do:

  • Global Mobility Support: Simplifies onboarding and immigration, enabling quick onboarding and engagement of international talent.
  • Effortless Onboarding: Streamlines global employee onboarding to enhance productivity and speed up results.
  • Global Payroll & Benefits Management: Manages international payroll and benefits, ensuring compliance and competitive compensation.
  • Borderless Expansion Without Local Entities: Facilitates workforce expansion in 190 countries, removing the need for local business entities.
  • Hire Internationally, Operate Everywhere: Offers support for scaling operations and seizing international opportunities swiftly.
  • Risk-Free Market Navigation: Provides expert guidance for secure expansion, managing permanent establishment, employee misclassification risks and compliance challenges in new markets.

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting

Offboarding

Talent skilled in highly specialised areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment

Why Choose a Global EOR for Your Hong Kong Expansion?

Quick Market Entry

In the fast-paced world of international business, timing can be everything. While being a land of opportunities, Hong Kong also requires significant paperwork and legal compliance to set up a business. This is where a Global EOR comes in handy. With all the groundwork laid out, you can immediately commence operations, giving you the speed-to-market advantage. This is an invaluable benefit, allowing you to immediately focus on business activities like market research and customer acquisition.

Comprehensive Compliance

Even for seasoned business owners, Hong Kong’s legislative landscape can be challenging. This includes everything from employment contracts that align with the Employment Ordinance to understanding the nuances of the Inland Revenue Ordinance for taxation. Without local knowledge, this could turn into a compliance nightmare. A Global EOR provides a safety net by ensuring that every aspect of your operation is legally compliant. This is vital for long-term sustainability and minimizes the risk of penalties or legal repercussions, allowing you peace of mind as you expand.

Resource Optimisation

It’s no secret that setting up an international subsidiary involves legal work and staffing it with HR, payroll, and legal departments. With a Global EOR in Hong Kong, these roles are effectively outsourced, but not at the cost of quality or compliance. This frees up your internal resources to focus on what matters most—your core business activities. Instead of being bogged down by administrative tasks, your team can focus on growth, product development, or entering additional markets..

Onboarding and Drafting Compliant Employment Contracts

One of the initial challenges when expanding to a new territory is onboarding local or expatriate staff. A Global EOR expedites this process and ensures employment contracts comply with local laws. This protects your business from legal repercussions and fosters trust with your new employees from day one.

Managing Expatriate Payroll and Benefits

Operating in a foreign country can complicate your payroll and benefits administration due to different currencies, tax codes, and local regulations. A Global EOR handles these aspects, ensuring a smooth, compliant, and optimized payroll process. It guarantees you meet legal requirements and offers competitive packages to attract the best talent.

Compliant Market Exit and Employee Off-boarding

If you determine that a market isn’t aligned with your business goals, exiting becomes a strategic necessity. With Express Global Employment acting as your Global Employer of Record, you can navigate this complex transition with confidence and integrity. We handle the ethical and compliant termination of employment contracts with your local staff. This includes adhering to required notice periods, severance packages, and other local employment termination requirements. This way, you can focus on reallocating your business resources without the complexities and risks associated with local employment laws or the liquidation of a local entity. Your reputation remains safeguarded, allowing you to exit a market smoothly and responsibly.

Global Payroll Calculator

The Global Payroll Calculator from Express Global Employment is more than just a tool for payroll management; it’s a comprehensive solution that offers global employment cost benchmarking capabilities.

Our calculator dives deep into the intricacies of employment costs, revealing not just basic salaries but also hidden expenses like insurance contributions, benefits, and tax liabilities for both local and expatriate staff. Its robust feature set allows for intricate global talent acquisition planning and strategic cost analysis, enabling you to compare employment costs across different markets and identify the most cost-efficient international talent pools.

 

In doing so, the Global Payroll Calculator transcends its primary function, becoming a strategic asset for companies looking to optimise their global employment and expansion strategies.

Get Express Quote

12 Scenarios When You Might Need a Global Employer of Record

Navigating the complex terrain of international hiring can be a daunting task. The challenges are manifold, from grappling with local labour laws to ensuring tax compliance. Add to that the potential pitfalls of working with an inadequate service provider, and you’re in for a turbulent journey. Explore 12 scenarios where a Global Employer of Record (Global EOR) can be your strategic ally. Whether you’re an NGO, a scaling startup, or an established enterprise, discover how a Global EOR can help you focus on your core business while efficiently managing international hiring complexities in Hong Kong.

Scenario Description
Unhappiness with the Current Provider You have hired an employee but are unhappy with your current service provider and looking for better options.
Contractor Compliance You have decided to hire an independent contractor instead of a full-time employee, and you need help ensuring compliance with local labour, tax, and immigration laws.
Quality Improvement You seek to enhance the quality of employment services while avoiding the risk and hassle of dealing with multiple service providers in different jurisdictions.
Budget Constraints Your company can no longer afford to maintain a fully-fledged legal operation in the target country and needs a more cost-effective solution.
Temporary Projects You have a temporary or short-term project in a foreign country that does not warrant setting up a full legal entity.
Hiring Foreign Workforce You need to hire a foreign workforce for a new international project and ensure legal compliance.
Business Transitions Your company is undergoing a business transition such as mergers, acquisitions, or shutdowns, and you want to ensure smooth and compliant employee transitions.
NGO Staffing You are an NGO that needs to hire professionals in different locations across the globe quickly.
Interim Employment Solution You are in the process of establishing a legal entity in a foreign country but need an interim solution for hiring and payroll.
Scaling up Operations Your company is rapidly growing and needs to hire in countries where you don’t have an established presence yet.
Remote Work Expansion You want to leverage the global talent pool by enabling remote work, but you need help with the employment regulations in each worker’s country.
Reducing Legal Liability Your company wants to reduce potential legal liabilities related to international employment and seeks expert assistance.

Get Express Quote

Why Local Entity Establishment Isn’t the Best Way to Expand Globally

Cost, Time, and Capital-Consuming

Establishing a local entity involves a significant financial investment and time commitment. The process can be cumbersome and capital-intensive, from navigating regulatory approvals to setting up compliant business practices. Not to mention the additional costs that can accrue from legal advice, accounting services, and human resources management. All these commitments can strain your financial resources and divert attention from your core business operations.

Challenging to Divest

If you’re merely testing the waters in a new market, a local entity can quickly become a liability rather than an asset. Winding down a legal entity can be as complex and time-consuming as setting one up, involving bureaucratic hurdles, asset liquidation, and potential severance pay. Plus, there are costs associated with dissolving the business, including legal fees and financial penalties for early termination of contracts or leases. The process can be draining and disruptive, with lingering financial and reputational risks.

Regulatory & Compliance Burden

Operating a local entity means continuously adhering to local laws and regulations, which can vary significantly from one jurisdiction to another. Non-compliance could result in substantial fines, legal repercussions, or irreparable damage to your brand’s reputation. Moreover, the need to continuously monitor legal changes adds a layer of complexity and risk. Keeping abreast of all these regulations often requires specialised knowledge and can consume valuable time and resources that could be better invested in growth activities.

Why Partnering with a Global EOR is a Risk-free and Lightweight Alternative to Entity Establismnent

Partnering with a Global Employer of Record (EOR) like Express Global Employment offers a streamlined, cost-effective alternative to establishing a local entity. A Global EOR absorbs the complexities of employment, from compliance to payroll, freeing you to focus on your core business activities.

Leveraging Global EOR’s established infrastructure can considerably expedite your time-to-market, allowing for agile responses to market dynamics without the risks tied to long-term investment.

The ability to rapidly scale up or down offers flexibility, which is especially valuable when testing new markets. It eliminates the need to invest heavily in an unproven market, mitigating financial risks and potential losses.

Permanent Establishment Risk

What Is Permanent Establishment?

Permanent Establishment (PE) is a crucial concept in international taxation, which may obligate a foreign business to pay taxes in a country with significant business activities but not a legal entity. The term denotes a fixed place of business, often triggering local taxation and compliance requirements.

What Triggers Permanent Establishment Risk?

PE risk can be triggered by activities such as having a physical office, storing inventory, or employing staff in a foreign country for an extended period. Even certain contractual agreements and decision-making processes locally can result in a PE designation.

How to Achieve Compliance – What to Watch?

Awareness of local laws and international tax agreements is essential to mitigate PE risk. Monitoring the duration and nature of activities in a foreign jurisdiction is critical. Also, proper documentation and structure of contracts can play a pivotal role in avoiding a PE status.

How a Global EOR Can Help You Avoid Permanent Establishment Risk

Partnering with a Global Employer of Record (EOR) like Express Global Employment can significantly reduce your PE risk. A Global EOR takes on the employer’s responsibilities, thus eliminating the need for your company to establish a legal entity in foreign jurisdictions. You can leverage the established employment infrastructure of a Global EOR, ensuring compliance without the administrative burden of setting up and operating a separate legal entity abroad.

Spotlight on Hong Kong

Hong Kong Special Administrative Region (SAR) is located in Eastern Asia on the southeast coast of Mainland China. Hong Kong was a self-governing British colony from 1841 to mid-1997. Pursuant to the 1984 Sino-British Joint Declaration, Hong Kong became a SAR of the People’s Republic of China on 1 July 1997. Over the past few decades, Hong Kong SAR has transformed from a labour-intensive manufacturing-based economy towards a high-value-added and knowledge-based economy, focusing on international trade, financial services, tourism, etc.

  • Capital: Victoria.
  • Population:7,492,540
  • Local currency: Hong Kong dollar (HKD).
  • Most developing industries: Hong Kong relies heavily on financial services, the production of electronics, and tourism as its main industries. The agricultural sector is almost non-existent since Hong Kong possesses no natural resources and completely relies on raw materials and energy imports.
Ready to Get Started?
Get Express Quote