How To Set Up Your Own Employment Agency in Hong Kong

Establishing an employment agency in Hong Kong can be a profitable and rewarding venture, particularly in a market known for its international business environment and fast-moving workforce. However, operating as a recruitment or employment intermediary requires compliance with specific legal and regulatory frameworks, including licensing obligations and code of conduct requirements.

In this guide, we break down the essential steps to set up your own employment agency, from company formation to licensing and compliance.

Understand What an Employment Agency Is

An employment agency in Hong Kong refers to any business that provides recruitment services, matching job seekers with employers for permanent, temporary, or contract work, whether locally or overseas.

Under the Employment Ordinance and the Employment Agency Regulations, any business engaging in these activities must obtain a Licence to Operate an Employment Agency issued by the Labour Department.

Step 1: Register a Legal Entity

The first step is to incorporate a company in Hong Kong through the Companies Registry. You will need:

• A company name (unique and available)

• At least one director and one shareholder (can be the same person)

• A local registered address

• Company secretary (must be a local resident or corporate body)

This forms the legal foundation upon which you can apply for an employment agency licence.

Step 2: Open a Corporate Bank Account

A local business bank account is necessary for processing transactions, paying staff, and collecting placement fees. Banks will require your company’s registration documents, business plan, and proof of address.

Step 3: Apply for an Employment Agency Licence

To legally operate as an employment agency, you must apply for a licence with the Employment Agencies Administration (EAA) under the Labour Department. The application process includes:

• Application Form (EA1)

• Supporting documents (business registration, tenancy agreement for the office premises, personal particulars of directors and key staff)

Key Requirements:

• You must have a physical office space in Hong Kong.

• You must appoint a suitable person (fit and proper) to manage the agency—this individual must pass a background check.

• You must not have any record of breaching employment laws or disqualifying offences.

Licences are valid for one year and must be renewed annually.

Step 4: Comply with Operational and Ethical Standards

Licensed agencies must follow the Code of Practice for Employment Agencies, which includes:

• Charging fees only to employers, not job seekers (with limited exceptions)

• Maintaining proper records of placements and transactions

• Displaying the licence and code of practice in the agency’s office

• Ensuring transparent contracts and fair treatment of all candidates

Breaching the code can lead to suspension or revocation of the licence.

Step 5: Build Your Candidate and Client Network

Once licensed, the business focus shifts to building a strong network of:

• Employers seeking quality candidates

• Job seekers looking for new opportunities

• Industry-specific partners or platforms that can support recruitment

Invest in a CRM system or applicant tracking software to manage candidate data efficiently and professionally.

Step 6: Promote Your Services

Establish a strong online presence through a professional website, social media channels, and job portals. Clearly communicate your niche (e.g. executive search, domestic helpers, tech placements) and differentiate your value proposition.

Common Challenges to Be Aware Of

• Non-compliance with licensing laws: Operating without a valid licence is a criminal offence.

• Improper contracts or documentation: These can lead to disputes, regulatory warnings, or legal issues.

• Lack of clear internal procedures: Especially around fee structures, candidate screening, and client agreements.

How Woodburn Can Support

At Woodburn Accountants & Advisors, we support entrepreneurs through every stage of launching an employment agency in Hong Kong. From company incorporation and office set-up to licence applications and ongoing compliance, our experts ensure that you stay aligned with legal requirements while focusing on business growth.

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Woodburn Accountants & Advisors is one of China and Hong Kong’s most trusted business setup advisory firms.

Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.

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