This is entirely possible but please note:
- Having an employee in Hong Kong risks subjecting your company to corporate tax because it will be difficult to justify that your activity is not carried out inside Hong Kong. It will also require you to submit annual financial statements and audits for your company. In terms of expenses, only the Mandatory Provident Fund (MPF) is due (5% of the salary paid). We include in our package the annual Employer’s return which is mandatory even if the company has no employee at HK.
- For an employee outside HK, there will be no social charge to pay HK. But usually this employee will have to be declared in the country in which he is physically located which will incur local social charges.