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Rules about hiring a consultant in Hong Kong

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  1. #1

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    Rules about hiring a consultant in Hong Kong

    Hi,
    Does anyone have any information about what rules you have to comply with to hire a Hong Kong citizen as a consultant in Hong Kong? I work for an international organisation which does not have any presence in HK. If we want to hire someone to work as a consultant, but do not want to set up an office, do we still have to register with the HK government? And what other rules are there?

    Thanks for your help!
    DeSelby


  2. #2

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    I hope there are no rules. Mr Movingin07 does this (works as an independent consultant) and he has not come across any so far..... When he did it in NZ he had to register for GST, but there is none of that in HK, and since all his work is overseas no income tax either!

    I would have thought that the onus is on the consultant to know the rules, anyway, not you!


  3. #3

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    There are no rules, that I am aware of.
    You can hire a HK any resident.Income, the person receives will be taxable in HK.


  4. #4

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    The onus is on the HK person - there are no rules for the overseas company. Personally if I were an overseas company though I would prefer to see that the person concerned had at least registered a business of some sort (even just as a sole proprietor) and could give me their business registration number.


  5. #5

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    A related question on this old thread that will answer my current query. So in this case since we cannot issue a employment contract to the consultant and assuming the consultant does not have a sole proprietorship... how do we "hire" him? Work for hire for individuals?

    I have a sole proprietorship and I have a HK PR/Citizen who wants to do some work for me. On what basis can I pay him/her without having to have this person register a company?


  6. #6

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    Why can't you issue an employment contract?

    And it currently costs HK$250/year to run a sole proprietorship. If the Consultant isn't willing to do that then you would have top wonder why!

    Last edited by Gruntfuttock; 23-10-2013 at 12:24 AM.

  7. #7

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    Quote Originally Posted by Gruntfuttock:
    Why can't you issue an employment contract?

    And it currently costs HK$250/year to run a sole proprietorship. If the Consultant isn't willing to do that then you would have top wonder why!
    Think project work. Its not the money but the hassle. I mean if you are doing a business its hardly an effort to register a sole proprietorship but if you are an individual that can do a project for me (in my case something similar to rent-a-coder style work) then how to pay this person?

  8. #8

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    just ask him to send you an invoice under his personal name. if he doesnt declare that income, then that's his problem, not yours

    INXS likes this.

  9. #9

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    Quote Originally Posted by cookie09:
    just ask him to send you an invoice under his personal name. if he doesnt declare that income, then that's his problem, not yours
    Ok. But this is where I get confused by the law in HK. Are individuals allowed to do this?

  10. #10

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    I believe that could make him an employee rather than a sub-contractor which brings with it all sorts of rules (MPF, paid holidays, mandatory insurance, etc etc). See questions 7 & 8 here: http://www.labour.gov.hk/eng/faq/cap57b_whole.htm#q7


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