Preparation:
- Company Registration
- Nominated Operator
Application:
- License Application
- Submit Required Documents
Hong Kong's diverse and skilled workforce, coupled with its thriving economy, makes it an ideal location for recruitment agencies. This provides opportunities for agencies to offer specialized recruitment services.
Operating a recruitment agency in Hong Kong requires an Employment Agency License, except for specific exemptions (e.g., agencies operating under the Merchant Shipping Ordinance, those run by the government, etc.). Operating without a license can result in severe penalties.
Before applying, the agency must be registered as a company in Hong Kong, and a nominated operator must be appointed. The nominated operator should be a Hong Kong citizen, Permanent Resident, or hold a valid employment visa.
The license must be displayed prominently at the agency's office. To renew, submit the application at least two months before expiration, with a renewal fee of HKD 2000 and the necessary documents.
Finding a job is a two-way street. While there is a lot of talent in the market, matching the job seekers to the right job opportunities is no easy feat.
That's where the Human Resources (HR) recruitment agency steps in, playing the important role of finding the ideal candidate from the talent pool to meet the client's specific requirements.
They achieve this through their recruitment services, which include streamlining the hiring process for businesses.
According to the Employment Ordinance, which governs various employment conditions in Hong Kong, a recruitment agency refers to “an establishment or person who aims to obtain employment for another person, or supply personnel to an employer.”
In other words, a recruitment agency acts as the intermediary to source suitable candidates.
Recruitment agencies are an integral part of Hong Kong's economy.
As of May 2020, there are 3,148 licensed employment agencies that are registered with the Labour Department in Hong Kong.
Are you thinking about starting a recruitment agency in Hong Kong and offering a comprehensive suite of recruitment solutions? Here's a useful guide to addressing all your queries!
Recruitment Agency: Hong Kong Booming Industry
Before anything else, grasping the recruitment scene in Hong Kong is key.
The recruitment market in Hong Kong is always evolving.
- The demand for skilled tech professionals in Hong Kong spans across various sectors.
- Companies are opting for flexible staffing solutions, leading to more contract hiring.
- Ensuring a positive recruitment experience is not just a bonus; it's necessary for businesses aiming to attract top talent.
Benefits of Starting in Hong Kong
Setting up shop in Hong Kong has advantages, as the city boasts a diverse pool of skilled professionals across various job industries. This makes it a prime location for recruitment agencies, especially those offering executive search services.
Hong Kong's dynamic economy means a constant demand for skilled workers.
With a growing business environment, successful recruitment agencies can understand what attracts top talent through employer brand research and use that knowledge to connect the right employers with the right talent, resulting in successful placements.
When Do You Need a License For Your Recruitment Agency?
Unless your HR services business pertains to exempted categories, you need a license to operate and provide employment services in Hong Kong.
Exempted categories need to apply to the Labour Department to obtain a Certificate of Exemption.
The following recruitment agencies are exempted:
- Operational under the Merchant Shipping (Seafarers) Ordinance
- Operating on behalf of the government of Hong Kong
- Operated by employers to hire employees for their organization alone
- Operated by educational institutions to assist their graduates/students in finding employment
- Operated by a contractor or sub-contractor for hiring manual labor to carry out building works
- Operated by the owners of a publishing house for non-profit purpose
These exemptions are typically limited to specific employment scenarios. Getting a license becomes mandatory if your recruitment agency offers broader business support services beyond these exemptions, such as talent management consulting or outplacement services.
Starting a recruitment agency without obtaining a license from the authorities is a punishable offense.
It can attract a penalty of HKD 350,000 and imprisonment for three years.
Are There Any Special Conditions to Be Fulfilled Before I Apply for the License?
Before sending any license application for processing, you must incorporate and register a Hong Kong Company.
A person should be appointed as the company's nominee and designated as the nominated operator.
Such a person is responsible for the routine operations and management of the agency.
If the recruitment agency assists overseas domestic workers in finding opportunities in Hong Kong, they must comply with the relevant regulations.
Who Can Be Appointed as a Nominated Operator?
Such a person should either be a citizen of Hong Kong, a Permanent Resident, or hold an employment visa.
The person can be the director or an officer of the recruitment company.
Additionally, the nominee should not have been declared bankrupt or charged with any offense in the last five years when the license application was made.
What is the Procedure to Apply for the License to Register the Recruitment Agency?
The first step involves submitting a name for the recruitment agency for approval by the Labour Department.
In case the name infringes on a trademark, sounds similar or identical to the name of an existing recruitment agency, or is offensive to the public interest, the department can reject the application.
Once the Labour Department approves the name, the following documents must be submitted:
- Duly filled out the application form for obtaining the license for the recruitment agency along with the supplementary form
- Certified true copies of the company documents, such as the Business Registration Certificate, Certificate of Incorporation, and Articles of Association
- Certified true copies of the Notification of the first secretary and directors of the company and subsequent changes (if any)
- A certified true copy of the document that confirms the appointment of the nominated operator
- A certified true copy of ID cards issued by the Hong Kong government or travel documents of every director and the nominated operator. The purpose of the travel documents is to place on record that the relevant persons are free to travel and take up new employment or establish a new business within Hong Kong.
The director or the nominated operator must submit these documents.
Typically, there's a short in-person interview after the documents are submitted.
How Long Does It Take for Approval?
Usually, you can expect to hear from the Labour Department within 3-4 weeks of submitting all the documents.
To receive the license, you also need to pay a license fee which is currently HKD 2000.
What is the Validity of the License?
The validity of the Employment Agency License in Hong Kong is 12 months.
That's why you need to start the recruitment agency within that period.
Are There Any Other Conditions Related to the License?
It must be displayed prominently on the office premises at all times.
Failure to do that is an offense and attracts a maximum penalty of HKD 10,000.
How Can I Renew the License?
To renew the license for your recruitment agency, submit the renewal application at least two months prior to the expiry date of the license.
The renewal fee of HKD 2000 and the following documents must be submitted to the Labour Department:
- Duly filled copy of the ‘Renewal of License' application form;
- A declaration (in the prescribed format) from the applicant that they have not been declared as an undischarged bankrupt;
- A true certified copy of the Business Registration Certificate for the recruitment agency; and
- Authorization from the applicant that the authorities can conduct a check on their criminal record
What Can I Do if My Application for Obtaining a License for My Recruitment Agency is Rejected?
The best way is to file an appeal with the Administrative Appeal Board of the Labour Department.
However, you must file the appeal within 28 days of receiving the rejection.
Are There Any Best Practices That Need to Be Followed by Recruitment Agencies?
The Commissioner for Labour has issued the Code of Practice for Employment Agencies for promoting professionalism and better service in the industry.
Recruitment firms should comply with the terms of the same.
Irregularities or non-compliance can result in the issuance of warning letters from the Commissioner of Labour.
Ready to Set Up a Recruitment Agency in Hong Kong?
It's undeniable that a recruitment agency streamlines the job search and the hiring process for both the employer and the job seeker.
While setting up a recruitment agency can feel overwhelming, you can achieve your goals with the right guidance. This guide simplifies the licensing process, but navigating the competitive landscape requires additional expertise.
Consider partnering with Air Corporate to register your agency and gain valuable industry insights from top recruitment agencies — we'll help you focus on your business and take care of the rest.
