Hong Kong SAR, China: Operating a Business

Sole Proprietorship

Number of partners: 1 person
Capital (max/min): No minimum capital.
Shareholders and liability: Individual entrepreneur is liable for debts of the enterprise on personal goods.

Company Limited by Guarantee

Number of partners: Minimum 2 partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Their liabilities are limited to the amount of contributions made to the shares of the company.

Unlimited Company

Number of partners: Minimum 2 partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Their liabilities are unlimited and joint.

Private Limited Company

Number of partners: At least 1 partner or shareholder with a maximum of 50.
Capital (max/min): No minimum capital.
Shareholders and liability: Their liabilities are limited to the amount of contributions.

Public Limited Company

Number of partners: At least 1 partner without maximum.
Capital (max/min): No minimum capital.
Shareholders and liability: Their liabilities are limited to the amount of contributions.

General Partnership

Number of partners: Minimum 2 partners.
Maximum 20 partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Their liabilities are unlimited for the debts and obligations of the association.

Limited Partnership

Number of partners: Minimum 2 partners.
Maximum 20 partners.
Capital (max/min): No minimum capital.
Shareholders and liability: General partners are liable for all debts and obligations (unlimited liability). Liability of other partners is limited to the amount of contributions.

Business Setup Procedures

The Competent Organisation

Company register

For Further Information

Consult Doing Business Website, to know about procedures to start a Business in Hong Kong.
Trade Register

Financial Information Directories

Companies Registry - Information of companies and body corporates registered in Hong Kong

Dun & Bradstreet - Worldwide directory with financial information on businesses

Recovery Procedures

Principle

Only a business corporation can be liquidated. A request for reimbursement of debt against the company should be submitted. The Court can decide to order the liquidation of the company. The distribution of assets to the creditors is carried out and the company is dissolved.

Bankruptcy Laws

Company Ordinance,
Bankruptcy Ordinance

Reorganization and Rehabilitation Laws

Further info here.

For Further Information About the Labour Market

Statistics, regarding the education level of households and residents

Opening Hours

 

• Legal Weekly Duration

Between 40 and 48 hours

• Maximum Duration

Working hours a day: 8 hours (between 7 a.m. and 7 p.m. only).

Working hours: a week: 48 hours.

• Night Hours

After 1900 hrs.

Working Rest Day

One rest day per week.

Paid Annual Vacation

As per the work contract. 12 days of holiday are compulsory.

Retirement Age

There is no legal age for retirement, but the average age is around 62 years.

Child Labour and Minimum Age For Employment

16 years

 

Informal Labour Market

Weak.

Pay

Minimum Wage

According to the Hong Kong Labour Department, the minimum wage for non-domestic workers is HKD 37.5 per hour. This rate will be reviewed by the end of 2022. 

Average Wage

According to the Census and Statistics Department, the gross median monthly employment wage is HKD 18,700 in 2021.

Other Forms of Pay

• Pay For Rest Days Worked

Prohibited.

• Pay For Overtime at Night

Prohibited.

Social Security Costs

The Areas Covered

Employees subscribe to mandatory provident funds that are run privately. These generally cover universal allowances, mandatory occupational benefit and social assistance (including medical benefits). A government social security scheme is administered through the SWD for the financially vulnerable only.

Contributions

Contributions Paid By the Employer: Employers are required to deduct 5% and contribute a further 5% to the Mandatory Provident Fund (MPF), calculated on a maximum income of HKD 30,000.
Contributions Paid By the Employee: For employees with monthly income above HKD 7,100, a 5% withholding tax (capped at HKD 1,500) is levied as contribution to the Mandatory Provident Fund (MPF).

Competent Organization

Mandatory Provident Fund Schemes Authority
Social Welfare Department

Recruitment

Method of Recruitment

Depends on the sectors. Face to face remains the standard.

Recruitment Agencies

Recruitment agencies in Hong Kong.

Recruitment Websites

Hong Kong Jobs
Monster HK

The Contract

Dispute Settlement

Social Partners

Employer Associations

EFHK - Employers Federation of Hong Kong

Social Dialogue and Involvement of Social Partners

Hong Kong Confederation of Trade Unions - (HKCTU) gathers several trade unions. Their power remains very weak.

Unionisation Rate

The unionization rate was about 23.6% in 2011.

Labour Unions

Hong Kong Federation of Trade Unions (HKFTU)

Regulation Bodies

Labour Department