How to Hire Employees in Hong Kong Without a Local Entity

If you want to hire employees in Hong Kong but would rather not set up a company to do it, an Employer of Record (EOR) is the route most foreign businesses take. It lets you put someone on the ground in days, fully compliant with local employment law, without incorporating your own entity first.

This guide explains how the EOR model works in Hong Kong, what it covers under local law, and when it is the right choice for your team.

Why hiring in Hong Kong usually means setting up a company first

To employ someone in Hong Kong directly, you need a local legal entity. Without one, your foreign company cannot sign a local employment contract, enrol the employee in the Mandatory Provident Fund (MPF), or report their pay to the Inland Revenue Department.

Setting up that entity is the conventional answer, but it comes with its own work: incorporation, a company secretary, annual filings, audits, and the ongoing cost of maintaining a company you may only need for one or two hires. For a single salesperson or a small remote team, that is a lot of overhead for the goal of simply having someone employed.

An EOR in Hong Kong removes that step, which is why it has become the standard way for foreign companies to make their first hires in the market.

What an Employer of Record does in Hong Kong

An Employer of Record is a company already established in Hong Kong that employs your chosen candidate on your behalf. This means, EOR becomes the legal employer of your remote employees while the person works for your company.

A simple example shows the split. Say your US company wants to hire a sales manager in Hong Kong. Your US entity cannot legally employ them locally, so the EOR signs the Hong Kong employment contract, runs the monthly payroll, makes the MPF contributions, and files the taxes. You direct the work: the targets, the performance reviews, and how the role fits your wider team.

So the division is clean. The EOR carries the legal and administrative side of employment, while you keep full control of the day-to-day.

What the EOR handles under Hong Kong law

When you hire through an EOR, it takes on every formal employer obligation under Hong Kong law. That covers:

• The employment contract: A written agreement that complies with the Employment Ordinance (Cap. 57), drafted and issued to the employee.
• MPF administration: Enrolment in a registered MPF scheme and the monthly contributions, with employer and employee each putting in 5% of relevant income, capped at HKD 1,500 per side.
• Payroll and tax: A compliant monthly payroll in Hong Kong dollars, and the salaries tax reporting that goes with it.
• IRD reporting: The mandatory filings to the Inland Revenue Department, including Form IR56E when an employee starts, the annual IR56B return, and Form IR56F on departure.
• Statutory leave Management: The 15 statutory holidays that apply in 2026, paid annual leave that grows with tenure, 14 weeks of maternity leave, and five days of paternity leave.
• Termination and severance: A compliant exit when the employment ends, including any severance or long service payment due.

One point worth flagging here is that Hong Kong abolished the MPF offset in 2025. So employers can no longer use their MPF contributions to offset severance and long service payments. A good EOR factors this into the cost of any exit, and it is the kind of change that is easy to miss if you are managing employment from abroad.

If you are looking to hire employees in Hong Kong, you can reach out to our team via the form below.

When an EOR is the right choice

An EOR fits best when you want to be employing quickly and lightly rather than committing to a full local presence. Consider it when you are:

• Hiring in Hong Kong and want someone working within days
• Looking for a cheaper, faster alternative to setting up an entity
• Bringing on one or two people and want to stay flexible
• Without the in-house legal or HR setup to manage overseas employment
• Hiring a non-resident who needs work visa sponsorship

If your plans grow into a larger Hong Kong operation, you can always incorporate later and move your team across. The EOR route does not lock you in; it gets you started.

How hiring through RecruitGo works

The process is built to be fast and straightforward.

First, we agree the role, salary, and start date with you. Next, we draft a locally compliant employment contract to match. We then onboard the employee onto our Hong Kong entity, while you take over their day-to-day work.

From there, we run the monthly payroll, handle the MPF and tax filings, and stay your single point of contact for anything HR.

That leaves you free to focus on the new hire's work and how they fit your team, while we carry the legal and administrative load.

Start Hiring Compliantly in Hong Kong With RecruitGo as Your Employer of Record

Hiring in Hong Kong is straightforward once the compliance is handled by someone who knows the market. As your Employer of Record, RecruitGo gives you a compliant Hong Kong employment setup from day one, whether you are hiring one person or building a team.

For a fuller look at our service, see our Employer of Record in Hong Kong page. Or tell us about the role you are hiring for, and we will walk you through how it would work.