By Vlad Cuc, specialist in company formation matters
Real estate agencies in Hong Kong need to comply with the ongoing legislation for special licensing and permits. Investors have the option of opening a Hong Kong company or setting up a sole trader and doing business as independent real estate agents.
The residential and office real estate market in Hong Kong has seen a dynamic evolution in prices and demand. Until recently, prices have been constantly increasing, only to stabilize and even lower during the last year.
Demand for office space remains constant and it is mainly driven by foreign companies in Hong Kong, especially those from Mainland China wishing to expand their activities to the Special Administrative Region.
We invite you to watch a short video about real estate agencies in Hong Kong:
Setting up a Hong Kong real estate agency
Companies in Hong Kong that want to apply for a real estate license must be incorporated as per the requirements set forth in the Companies Law and must have at least one company director who is himself a licensed estate agent.
The company incorporation procedure is simple, yet the investor must make sure that the following steps are completed:
– obtaining an original and approved company name;
– drawing up the company documents;
– registration with the Companies Registry.
Real estate companies in Hong Kong may receive their special license for functioning if they have ongoing business operations and are in no danger of becoming bankrupt.
If you are interested in setting up a company in Hong Kong in the real estate sector, you should know that our company formation agents in can help you open a new company and afterward make all the necessary document submissions for obtaining the estate agent license.
Requirements for Hong Kong real estate agencies
Individuals and companies may apply for an estate agent license or a salesperson license. The difference between these two licenses is that the salesperson must work under a licensed estate agent in Hong Kong as an employee.
The estate agent license can be issued for an individual working as a sole proprietor, for the director of a company in Hong Kong or for one of the individuals who are forming a partnership. The manager of any real estate agency in Hong Kong must be a holder of a valid estate agent license.
Failure to obtain such a license or operating with an invalid one is considered an offense and punishable by law.
Applications for obtaining an estate agent license or a salesperson license are submitted to the Estate Agents Authority of Hong Kong together with the required documents and the necessary fees.
If you need help making the submission for obtaining an estate agent license you may contact our company formation agents in Hong Kong.