Establishing An Employment Agency in Hong Kong

The Employment Ordinance of Hong Kong defines an employment agency (Employment Agency) as “a body of people or place whose sole objective is to search for employment opportunities for others or to provide workers to an employer.”

Therefore, an employment agency functions as similar to the mediator between an organization and a potential employee. The employment agency may engage the local as well as foreign candidates applying for junior and managerial jobs.

An employment agency is also known as : 

• Recruitment agency
• Staffing agency
• Placement agency
• Manpower agency

A majority of the employment agencies in Hong Kong will be given a license to apply for any marginal position by the Hong Kong Labor Department before they can manage any job placement business.

This guide describes the information needed to get an employment agency license to operate an employment agency in Hong Kong.

Who Needs to Apply For An Employment Agency License?

A person or any company that wants to engage in job placement businesses in Hong Kong must acquire an employment agency license first. A license is not required for employment agencies that are : 

• Managed by or with the support of the government of Hong Kong.
• Working under the Merchant Shipping (Seafarers) Ordinance.
• Run by employers exclusively for their own hiring purposes.
• Subcontracts can be in the form of contracts managed between employers and employed laborers on behalf of those giving orders about construction jobs.
• Functioning for publications that are owned by non-profit organizations.
• Operated by an institution recognized as an education provider for the employment of students. 

Agencies that do not require a license, shall apply at the Labour Department for a ‘Certificate of Exemption of License’.

Requirements For The Employment Agency License

Before applying for an employment agency license, the following legal requirements must be satisfied:

• Company registration: You should set up a Hong Kong company and get a Certificate of Incorporation from the Companies Registry of Hong Kong.
• Nominated Operator: The company should nominate someone out of all the employees to run as the agency operator within the company. The operator looks after the daily operations and management. The operator, which can be the primary director or an officer of the company must either be a Hong Kong citizen, Hong Kong permanent resident, or an Employment Visa holder. This person cannot be an undischarged bankrupt and no convictions should be made in the last five years before applying for the license.
• Placement of overseas domestic workers: The staff of the employment agency, that deals with the overseas domestic workers’ placement, should comply with the rules concerning employment of domestic helpers from abroad.

Application Procedure for Employment Agency License

The application procedure for the employment agency license involves two steps:

• The confirmation of the proposed employment agency’s name 
• Submission of paperwork to the Labour Department of Hong Kong

Step 1: The confirmation of the proposed employment agency’s name

The first step in the license application procedure is getting approval for the proposed name of the employment agency you are going to register. Applying for the name of a company in Hong Kong can be processed by submitting the necessary documents to the Hong Kong Labor Department. Due to the following reasons, the proposed name might get rejected : 

• It is identical or similar to the other employment service’s name
• It violates the trademarks 
• It is perceived as offensive or rude to the general public.

Step 2: Submission of paperwork to the Labour Department of Hong Kong

By the time the provisional name of the company is validated, it will be time to the required documents to the Labor Department and send these documents for issuing the business permit.

The nominee operator who has been recommended has to submit the documents to the Labor Department in person and attend a brief interview during the submission of the documents. These are the documents to be submitted : 

• Employment Agency Application for the License and the Supplementary Form 
• A valid copy of Hong Kong ID cards and travel documents of the directors and the company operator. Those travel documents must demonstrate that those people are not prohibited from establishing businesses and taking up employment in Hong Kong without any restrictions. 
• Certified true copies of the Business Registration Certificate, Certificate of Incorporation Memorandum, and Articles of Association of the company.
• A notarized true copy of the notification of the first secretary and the directors of the company.
• A notarized true copy of the notification of the changes of Secretary and Directors (if any).
• A certified true copy of the document confirming that the operator of our nominated choice is being appointed.

A successful application should be processed in 3-4 weeks after which the Labour Department sends out a demand letter payment for the license fee. An Employment Agency License can be considered as completed when payment of the license fee of HK$ 2000 is made. Most employment agency licenses are issued for 12 months. The license should be prominently displayed in the offices at all times.

Handling Rejection

In ordinary circumstances, the administration will never turn down your employment agency license application if you have indeed submitted all the necessary documents and accurately provided the information in your agency license application. On the other hand, if your application got rejected, you still can file an appeal to the Labor Department’s Administrative Appeal Board within 28 days after the notice of refusal.

Renewal

An application for a renewal of employment agency license should be duly filed by applicants at least 2 months before the license expiry date. The following documents must be submitted to the Labor Department with the license renewal fee of HK$ 2,000:

• A complete “Renewal of the License” application form 
• A Declaration Form stating that the applicant is not an undischarged bankrupt
• A complete authorization to conduct a criminal record check on the applicant 
• A true copy of a certificate of valid Business Registration Certificate.

Easy And Convenient Business Licensing

Getting an employment agency license in Hong Kong is generally easy and clear to follow. It may be possible to make your license application on your own, but to make it simple and to save your money and time, you can consult a professional services agency such as FastLane. Our team of experts understands the obligations and regulations to follow for business licensing and is confident to serve you with top-notch secretary service. Please contact us for your inquiries regarding how we can help you manage a company.