Yes, you are required to supply the information to the IRD. From the information given, it would appear that the employee concerned must be liable to Salaries Tax so that you would have to file a form IR56E (the green form) for him within 3 months after employing him. You should confirm in item 14 of the form IR56E that this new employee has been conditionally granted a share option that can be exercised after rendering services in Hong Kong. In addition, you are also required to supply a list, as an attachment to the form IR56E, showing details of : the number and type of shares covered by the option; the consideration (if any) paid for the grant of the option; the consideration required to exercise the option; and the period within which the option must be exercised.