Employment Agency License in Hong Kong

By Easy Biz Team at Easy Solution (HK) Limited · Published 5 July 2026 · 5 min read

What Is an Employment Agency License?

An Employment Agency (EA) License is issued by the Labour Department under Part XII of the Employment Ordinance (Cap. 57) and the Employment Agency Regulations. It is required by any person or entity that, for reward, assists another person in obtaining employment or supplies a person to an employer to fill a vacancy.

Operating an employment agency without a valid license is a criminal offence under Section 53 of Cap. 57, punishable by a fine of up to HKD 50,000.

Who Needs an Employment Agency License?

You need an EA license if your business involves any of the following activities for profit:

• Job placement services — matching job seekers with employers
• Recruitment consultancy — providing recruitment services for companies
• Foreign domestic helper agencies — placing Filipino, Indonesian, Thai, and other foreign domestic helpers with Hong Kong employers
• Headhunting and executive search — sourcing senior-level candidates for employers
• Temporary staffing — providing temporary or contract workers to employers
• Talent management — representing job seekers in their search for employment

Free job-matching platforms that do not charge fees may be exempt. However, most commercial recruitment businesses require a license.

License Requirements

To obtain an Employment Agency License, the applicant must satisfy the following requirements:

• A registered Hong Kong company or a sole proprietorship/partnership
• A physical office in Hong Kong — the office address is stated on the license
• The operator must be a fit and proper person — assessed based on character and any criminal record
• Submission of Form EA-1 (Application for Employment Agency Licence) with supporting documents
• Details of all directors, partners, and operators of the agency
• Compliance with the Employment Agency Regulations on fees, record-keeping, and operating procedures
• Payment of the license fee (HKD 2,000 for new applications, HKD 1,850 for renewal)

The application process typically takes 3–6 weeks, during which the Labour Department conducts inspections of the proposed premises.

The 10% Commission Cap

One of the most critical regulations governing employment agencies in Hong Kong is the 10% commission cap. Under Regulation 10 of the Employment Agency Regulations:

• An employment agency may charge a job seeker a maximum of 10% of their first month's wages as commission
• This cap applies to all types of placement, including domestic helpers, executive recruitment, and temporary staffing
• Charging more than 10% is a criminal offence, punishable by a fine of up to HKD 50,000
• The commission must be charged after the job seeker has been placed — advance fees are prohibited
• The agency must issue a receipt for any commission collected

Important: For foreign domestic helper placements, the 10% cap applies to the helper's first month's salary. Many agencies charge the employer separately for placement services, but the charge to the helper must not exceed 10%.

Domestic Helper Agencies vs Recruitment Agencies

There are two main categories of employment agencies in Hong Kong, and understanding the distinction is important:

Feature	Domestic Helper Agency	Recruitment Agency
Target market	Foreign domestic helpers (FDH)	Local professionals, executives
Additional permits	May need accreditation with sending country (Philippines, Indonesia, etc.)	Standard EA license only
Commission model	Typically charged to employer + capped 10% from helper	Charged to employer (contingency or retained)
Regulatory scrutiny	Higher — Consulate liaison, ID provisions	Standard Labour Department oversight
Market size	~390,000+ FDHs in HK	Broad corporate market

Annual Renewal

An Employment Agency License must be renewed annually. The renewal requirements include:

• Submission of the renewal application before the current license expires
• Payment of the renewal fee (HKD 1,850)
• Updated information on the agency's directors, operators, and office address
• Compliance with all record-keeping requirements (employee records, placement records, receipts)
• Labour Department inspection of the premises

Operating with an expired license while the renewal is pending is technically an offence. Always submit the renewal application well in advance.

How to Acquire an Existing Employment Agency

Acquiring an existing licensed employment agency through share transfer is faster than applying for a new license. The process involves:

Step 1: Identify a suitable licensed agency and sign a non-disclosure agreement.

Step 2: Conduct due diligence — verify the license is current, check the Labour Department's public register, review compliance records, and confirm there are no outstanding complaints or enforcement actions.

Step 3: Sign the Sale & Purchase Agreement and pay the deposit.

Step 4: Complete the share transfer — file the Instrument of Transfer and pay stamp duty of 0.2% under Cap. 117.

Step 5: Update directors, shareholders, secretary, and operators. File Form NCA1 with the Companies Registry.

Step 6: Notify the Labour Department of the change in ownership and management. A new Form EA-1 may need to be filed to update the operator details on the license.

Step 7: Take over the business. The license continues under the new ownership, subject to annual renewal.

New Application vs Acquisition: Comparison

Factor	Buy Existing	Apply New
Timeline	2–3 weeks	3–6 weeks
Cost	HKD 50K–150K	HKD 5K–15K (filing + setup)
Premises inspection	Already passed	Required
Client base	May include existing clients	Start from zero
Compliance history	Inherits existing record	Clean start

Frequently Asked Questions

Can I operate multiple branches under one employment agency license?

No. Each branch office requires a separate license. You must apply for an additional license for each branch address.

What records must an employment agency keep?

Under the Employment Agency Regulations, agencies must maintain records of all job seekers registered, placements made, commissions charged, and receipts issued. These records must be available for Labour Department inspection.

Can I transfer my employment agency license to another person?

The license is attached to the licensed entity. To transfer, you acquire the company through a share transfer and then notify the Labour Department of the change in operator. The license remains valid for the entity under new ownership.