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Setting up a Real Estate Agency

Updated: Jul 17



Real Estate Agency


A real estate agency in Hong Kong is a company that acts as a middleman between property buyers or renters and sellers or landlords. They typically provide the following services:


  • Listing properties on their website and other marketing channels

  • Organizing viewings for potential buyers or renters

  • Negotiating deals on behalf of their clients

  • Assisting with paperwork, such as tenancy agreements or sales contracts


Using a real estate agent can be helpful for both buyers and sellers (or renters and landlords).  Here are some of the benefits:


  • Agents have expertise in the local property market: They can help you find properties that meet your needs and budget, and they can advise you on current market conditions.

  • Agents can save you time: They can handle all of the legwork of finding and viewing properties, which can save you a lot of time and hassle.

  • Agents can help you negotiate a better deal:  They have experience negotiating deals, and they can help you get the best possible price for your property.


Setting up a Real Estate Agency


Setting up a real estate agency in Hong Kong can be a relatively straightforward process if you follow the correct steps and have the necessary documentation. Here is a general guide to help you get started:


1. Choose a business structure.


There are a few different business structures that you can choose from when setting up a real estate company in Hong Kong. The most common options are:


  • Sole proprietorship: This is the simplest and least expensive option, but it also comes with the most personal liability.

  • Partnership: This is a good option if you are partnering with someone else, but it can also be more complex to manage than a sole proprietorship.

  • Limited company: This is the most common option for real estate companies in Hong Kong. It offers limited liability protection, which means that your personal assets are protected if the company is sued.


2. Choose a company name.


Your company name must be unique and compliant with Hong Kong law. You can check the availability of a company name online through the Hong Kong Companies Registry.


3. Appoint a company director.


The company director must be at least 18 years old and have a valid Hong Kong identity card. They must also be a fit and proper person, which means that they have no criminal convictions or other disqualifying factors.


4. Register your company with the Companies Registry.


You can register your company online or in person. The registration process is fairly straightforward and should only take a few days.


5. Obtain a real estate agent license.


In order to operate a real estate agency in Hong Kong, you must obtain a real estate agent license from the Estate Agents Authority (EAA). The EAA is a statutory body that regulates the real estate industry in Hong Kong.


Estate agent's licence


In Hong Kong, there are two main types of real estate licenses:


  • Salesperson's Licence (S Licence): This license allows you to work as a real estate salesperson under the supervision of a licensed estate agent.

  • Estate Agent's Licence (E Licence): This license allows you to operate a real estate agency or work as a salesperson for another estate agent independently.


Here's a breakdown of the requirements for obtaining an estate agent's licence in Hong Kong:


Basic Requirements:


  • Be at least 18 years old.

  • Have completed at least five years of secondary education or its equivalent.

  • Pass the relevant qualifying examination administered by the Estate Agents Authority (EAA) within the past year.

  • Be considered a "fit and proper person" to hold a license. This involves a background check for criminal offenses and financial issues.


Additional Requirements (Estate Agent's Licence only):


  • Have a registered office in Hong Kong.

  • Have a Hong Kong resident as a "responsible officer" who will oversee the agency's operations.


Things to Consider:


  • The qualifying exam is offered in both English and Chinese.

  • There are fees associated with applying for the license and taking the exam.

  • There are also ongoing continuing professional development (CPD) requirements for licensed estate agents.


Before you decide to pursue an estate agent's license, it's important to carefully consider the requirements and responsibilities involved.


6. Open a business bank account.


You will need to open a business bank account in order to deposit and withdraw funds from your company.


7. Comply with tax and other legal requirements.


As a real estate agency in Hong Kong, you will be subject to a number of tax and other legal requirements.


Additional tips:


  • Do your research: Before you start setting up your real estate agency, it is important to do your research and understand the Hong Kong real estate market. This will help you to identify your target market and develop a business plan.

  • Network with other real estate professionals: Networking with other real estate professionals can be a great way to learn about the industry and make valuable connections.

  • Get involved in the community: Getting involved in your local community can help you to build your reputation and generate leads.


Resources:


Here are some of the resources that you may find helpful:


  • Companies Registry: https://www.cr.gov.hk/

  • Hong Kong Trade Development Council: https://home.hktdc.com/

  • Estate Agents Authority (EAA): https://www.eaa.org.hk/en-us/ This is the official website of the EAA, which governs real estate licensing in Hong Kong. You can find detailed information on licensing requirements, application procedures, and the qualifying exam.


How Bestar can Help


Bestar is a leading provider of company formation services in Hong Kong. We offer a comprehensive range of services to help businesses of all sizes get started, including:


  • Company registration: Bestar can help you register your company with the Hong Kong Companies Registry.

  • Business licensing: Bestar can help you obtain the necessary business licenses, such as a real estate agent license.

  • Tax and accounting services: Bestar can provide you with tax and accounting advice to ensure that you are compliant with all applicable laws.

  • Business support services: Bestar can provide you with a range of business support services, such as virtual office services and bookkeeping.


In addition to these services, Bestar also has a team of experienced professionals who can provide you with expert advice on all aspects of setting up and running a real estate agency in Hong Kong.


Here are some of the benefits of using Bestar to set up your real estate agency in Hong Kong:


  • Experience: Bestar has been helping businesses set up in Hong Kong for years.

  • Expertise: Bestar has a team of experienced professionals who can provide you with expert advice on all aspects of setting up and running a real estate agency in Hong Kong.

  • Convenience: Bestar offers a one-stop shop for all of your company formation needs.

  • Cost-effectiveness: Bestar's services are competitively priced.


If you are considering setting up a real estate agency in Hong Kong, contact Bestar for a free consultation.




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