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Hong Kong: Operating a Business

Setting Up a Company | Working Conditions | Cost of Labor | Social Partners

Setting Up a Company

Legal Business Entities

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.

The Competent Organization: Company register
Search a Company or a Financial Report: Companies Registry

Setting Up a Company	Hong Kong	East Asia & Pacific
Procedures (number)	3.0	7.8
Time (days)	6.0	39.0

Source: Doing Business.

Business Setup Procedures: Consult Doing Business Website, to know about procedures to start a Business in Hong Kong.
Trade Register

Working Conditions

Legal Weekly Duration: Between 40 and 48 hours
Retirement Age: There is no legal age for retirement, but the average age is around 62 years.
Working Contracts: 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.

Cost of Labor

Minimum Wage: There is no legal minimum wage.
Average Wage: Average monthly gross earnings in Hong Kong is HKD 11.000 (USD 1.400)
Social contributions: Social Security Contributions Paid By Employers: 0 %.
Social Security Contributions Paid By Employees: 0%

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)
Labor Regulation Bodies: Labour Department

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Learn more about Operating a Business in Hong Kong on Globaltrade.net, the Directory for International Trade Services.

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Last Updates: January 2012