Hong Kong: Operating a Business

Legal Forms of Companies | The Active Population in Figures | Working Conditions | The Cost of Labor | Management of Human Resources

Legal Forms of Companies

Types of Companies and Capital (Max/Min)	Number of Partners/Shareholders and Liability
Sole Proprietorship is an individual company. No minimum capital.	1 person Individual entrepreneur is liable for debts of the enterprise on personal goods.
Company Limited by Guarantee No minumum capital.	minimum 2 partners. Their liabilities are limited to the amount of contributions made to the shares of the company;.
Unlimited Company No minimum capital.	minimum 2 partners. Their liabilities are unlimited and joint.
Private Limited Company In practice 1,000 HKD minimum.	minimum 2 partners. maximum 50 partners. Their liabilities are limited to the amount of contributions.
Public Limited Company No minimum capital.	At least 1 partner Their liabilities are limited to the amount of contributions.
General Partnership No minimum capital.	Minimum 2 partners. Minimum 20 partners. Their liabilities are unlimited for the debts and obligations of the association.
Limited Partnership No minimum capital.	Minimum 2 partners. Minimum 20 partners. At least one partner should have unlimited liability. Liability of other partners is limited to the amount of contributions.

Enterprises Federation: Hong Kong Small and Medium Enterprises Association
Hong Kong Small and Medium Enterprises General Association
SME Center of Trave Development Council
Funds for SMEs
Search a Company or a Financial Report: Companies Registry

Business Setup Procedures

Setting Up a Company	Hong Kong	East Asia & Pacific
Procedures (number)	3.00	7.80
Time (days)	6.00	39.00

Source: Doing Business.

For Further Information: Consult Doing Business Website, to know about procedures to start a Business in Hong Kong.
Trade Register
The Competent Organization: Company register

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. on: http://www.legislation.gov.hk/eng/home.htm

The Active Population in Figures

	2010
Labor Force	3,700,000

Source: CIA - The world factbook

	2009	2010
Total activity rate	-	60.00%
Men activity rate	68.90%	-
Women activity rate	52.20%	-

Source: UN - United Nations

For Further Information About the Labor Market: Statistics, regarding the education level of households and residents

Working Conditions

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 Labor and Minimum Age For Employment: 16 years
Informal Labor Market: Weak.

The Cost of Labor

Pay

Minimum Wage: There is no legal minimum wage.
Average Wage: Average monthly gross earnings in Hong Kong is HKD 11.000 (USD 1.400)
Other Forms of Pay
Pay For Rest Days Worked: Prohibited.
Pay For Overtime at Night: Prohibited.

Social Security Costs

Contributions: Contributions Paid By the Employer: 0 %.
Contributions Paid By the Employee: 0%
Competent Organization: MPFA
Social Welfare Department

Management of Human Resources

Recruitment

Method of Recruitment: Depends on the sectors. Face to face remains the standard.
Recruitment Agencies: Recruitment agencies in Hong Kong.
Recruitment Websites: Best Jobs Hong Kong
Hong Kong Jobs
Monster HK

The Contract

Type of Contract: The labor contract is mainly drawn-up by the law. It is completed by collective negotiations and agreements.
The formalism of the labour contract, hiring conditions and lay-off constraints are relatively flexible. CDI and the CDD are the two existing types of contracts.

Breach of Contracts

Retirement

Visit Labour.

Dismissals

Visit Labour.

Other Possible Methods

Resignation.

Labor Laws

The essential features of the labor laws

Dispute Settlement

Conciliation Process

Legal Framework: A request for conciliation will be submitted at the Labor Relations Division of the Labour Department. If conciliation is not reached, a Labour commissioner will be appointed to undertake the conciliation. A mediation will then be undertaken. An arbitration or an enquiry committee will be set-up if the conciliation and mediation has not been successful in judging the case.
Procedure: Labour Relations Ordinance

Judicial Structures

Legal Framework

Labour Relations Ordinance

Competent Legal Body

Labour Relations Division ,

Chief Executive of the Government of Hong Kong

Social Partners

Social Dialogue and Involvement of Social Partners: Hong Kong Confederation of Trade Unions - (HKCTU) gathers several trade unions. Their power remains very weak.
Unions: HKCTU
Hong Kong Federation of Trade Unions (HKFTU)
Regulation Bodies: Labour Department

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