Doing Business in Hong Kong with a PEO / Employer of Record
Hong Kong is widely regarded as the financial capital of Asia, and there is no wonder with its low rates of taxation and its highly educated workforce. With around 7.5 million people, Hong Kong has a thriving economy and encouraging growth in a number of industries that are ripe for foreign investment, including manufacturing, real estate, and financial products. For businesses looking to expand into Hong Kong, it is prudent to consider the benefits of a professional employer organization (PEO) or employer of record (EOR), which can not only ensure compliant operations in country, but can also prove a convenient means of testing markets.
Read on to discover the benefits of using a PEO in Hong Kong, and get rankings of the best Hong Kong PEOs/EORs.
Why Use a PEO in Hong Kong?
Although Hong Kong has a relatively friendly regulatory environment, it can still represent a huge cost to organizations for them to set up their own entities, build a full administrative staff, and hire lawyers, accountants, and other professionals to oversee the company’s compliance with local laws. In this regard, starting a business in Hong Kong with a PEO/EOR can be beneficial. PEOs/EORs take on all the responsibility of hiring, onboarding, managing, and paying employees, and can even assist with contract renewals, terminations, or any disputes that arise. The main benefit is being able to outsource all administration and compliance matters, which allows executives to focus on higher value business activities.
Best Hong Kong PEOs / Employer of Record
1. New Horizons Global Partners: www.nhglobalpartners.com
With a leading reputation in Asia, foreign companies should seriously consider New Horizons Global Partners to serve as their PEO/EOR in Hong Kong. NHGP has helped numerous clients to expand into Asia, and the fact that they are trusted by Fortune 500 companies speaks volumes about the quality of the service and the professionalism of their team. NHGP prides itself on its range of business services, and can assist in everything from setting up contracts in local languages to processing payroll and tax.
2. Velocity Global: www.velocityglobal.com
Velocity Global is a large company that offers a number of business services in Hong Kong. Their solutions are end-to-end, meaning they can be consulted for all stages of the expansion process. As with other PEOs/EORs in Hong Kong, Velocity Global will be able to ensure that business operations are established and maintained compliantly, and their network of partners in Hong Kong can assist in finding the right talent for your open positions.
3. HROne: www.hrone.com
HROne serves its clients as an employment agency in Hong Kong, and it manages on their behalf a range of employment and HR related matters including contract signatures, tax set up, and expenses management. A potential downside of HROne, however, is that they use what they call a ‘localized network’ to implement services, so it may be the case that foreign executives end up working with several different companies rather than one with a local presence for all services.