Doing Business Without an Entity in Hong Kong

Getting your business started in Hong Kong faster.

Businesses typically go through the time-consuming, costly, and risky steps of setting up a corporate entity, sourcing local talent, and maneuvering intricate local regulations and operational complexities to expand or establish their international footprint.

The mentioned traditional market entry strategy might result in:

  • Opting for an unsuitable pricing model; 
  • Launching an off-target initial service line or product; 
  • Setting up in the wrong location, adopting an incompatible business model; or 
  • Designate the unbefitting business partners or suppliers to work with. 

Considering Hong Kong’s complex labor laws, many companies increasingly recognize the benefits of initially exploring a limited, short-term presence in Hong Kong. Fortunately, an alternative and less conventional approach exists, offering businesses a means to mitigate the risks associated with market entry across various Asian markets.

Global Staffing Solutions enables foreign investors to do business in China for short-term durations without a legal entity of their own as an alternative.

Global PEO service in Hong Kong: What is it, and how does it work?

Professional employer organizations, often called global EOR (Employer of Record), will act as human resources providers for businesses that opt to set up without an entity in Hong Kong.

Did You Know
PEO will facilitate hiring globally, support your company's remote teams, and expand your presence.

PEO allows a company to scale its operations by hiring global talents lawfully and economically while the company focuses on core business functions instead.

PEO Benefits

Incorporating a company in Hong Kong can be complex and potentially costly if you need to familiarize yourself with the process. However, a lesser-known method offers your company similar advantages without the need for full incorporation—a Professional Employer Organization (PEO).

Here are some benefits PEO will provide you with;

  • (1) risk mitigation by regulations compliance since Hong Kong labor laws are strict, complex, and ever-changing. PEO will help shoulder the legal responsibilities when hiring globally, enabling your company to support remote teams and broaden its international footprint effectively;
  • (2) time and cost savings by avoiding the conventional bottlenecks of setting up a business in Hong Kong, including costly expenses. Reduce your company’s administrative costs by streamlining workforce processes;
  • (3) local expertise and networks where you gain access to invaluable local expertise and well-established networks, which can be instrumental in navigating the complexities of the Hong Kong market and empower your business expansion.

Offshore companies as a part of entity-free business initiation

A Hong Kong-based company can be legally formed without a physical presence, allowing for remote operations with no physical office or on-site staff.


Remotely Establishing Entities in Asia: China's Mainland vs. Hong Kong vs. Singapore

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Further, if the company generates all of its income from sources outside Hong Kong, it will not be subject to taxation within the region.

Offshore companies offer enhanced flexibility and substantial cost savings, thanks to their more relaxed regulations and reduced operational expenses. Conversely, onshore companies enjoy heightened legitimacy in the eyes of Hong Kong authorities and seamless access to the local market. The choice between opting for an offshore or onshore company fundamentally depends on a business owner's specific requirements and the objectives for their business.


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