Hong Kong: contracts, corporate, trademarks and employment
Hong Kong remains the contracting hub between mainland China and the rest of the world. Its common law system, bilingual courts, the HKIAC arbitration seat and a companies regime closely modelled on English law make it a natural home for trading subsidiaries, distribution agreements and holding companies for Greater China operations.
LegalMatrix prepares documents on its AI-assisted workflow and delivers in Hong Kong through a Hong Kong law firm engaged as its delivery partner. Every document is reviewed and signed off by a solicitor admitted in Hong Kong before release. Trade mark searches and filings are lodged with the IPD by the partner firm, which provides the Hong Kong address for service.
Contracts
| Topic | Essentials |
|---|---|
| Governing law | Hong Kong law is a common law system and parties may freely choose it, or any other law, for a commercial contract. Hong Kong court judgments and HKIAC awards benefit from reciprocal enforcement arrangements with the mainland, which is a frequent reason for choosing a Hong Kong forum in China-related deals. |
| Language | English and Chinese are both official languages. Contracts are commonly in English; where a Chinese version is signed, state which text prevails. Court proceedings may be conducted in either language. |
| Electronic signature | The Electronic Transactions Ordinance (Cap. 553) recognises electronic signatures between private parties where the method is reliable and appropriate and the recipient consents (section 6). Where a government entity is a party, a digital signature supported by a recognised certificate is required. Schedule 1 excludes, among others, wills, trusts (other than resulting, implied or constructive trusts), powers of attorney, instruments required to be stamped under the Stamp Duty Ordinance, land documents under the Land Registration Ordinance and Conveyancing and Property Ordinance, oaths, affidavits, statutory declarations, court documents and negotiable instruments. Because share transfer instruments are stampable, they are signed on paper. Check the authority: https://www.elegislation.gov.hk/hk/cap553 |
- The Contracts (Rights of Third Parties) Ordinance (Cap. 623) allows third-party enforcement unless excluded; standard practice is to exclude it.
- Private companies may execute documents without a common seal under the Companies Ordinance (Cap. 622); deeds are executed by two directors, or by a director and the company secretary, or by a sole director with a witness, or under seal.
- Share transfers attract stamp duty on both the buyer and seller (currently 0.1 per cent each on the higher of consideration and net asset value, plus a fixed fee on the instrument of transfer; check IRD), and must be stamped within the statutory window.
- The Control of Exemption Clauses Ordinance (Cap. 71) limits exclusion of liability in standard terms.
Corporate
| Topic | Essentials |
|---|---|
| Director duties | The duty to exercise reasonable care, skill and diligence is codified in section 465 of the Companies Ordinance (Cap. 622); fiduciary duties (good faith, proper purpose, no conflicts, no secret profits) remain common law and are summarised in the Companies Registry's Guide on Directors' Duties. A private company must have at least one director who is a natural person; there is no residency requirement. |
| Shareholder rights | Ordinary resolutions require a simple majority and special resolutions 75 per cent. Private companies may pass written resolutions and may dispense with annual general meetings by unanimous resolution. A member may petition for relief from unfairly prejudicial conduct under section 724 and may bring a statutory derivative action. |
| Share transfers | A private company's articles must restrict the right to transfer shares. Transfers use an instrument of transfer and bought and sold notes, are approved by the board, stamped by the Inland Revenue Department and recorded in the register of members. Directors may not allot shares without prior shareholder approval (section 140), which matters for option exercises. |
- Every company must appoint a company secretary (an individual ordinarily resident in Hong Kong or a licensed trust or company service provider).
- Every company must keep a significant controllers register and appoint a designated representative; the register is available to law enforcement, not the public.
- Annual returns are filed with the Companies Registry within 42 days of the anniversary of incorporation for private companies.
- Financial assistance for the acquisition of own shares is permitted through a solvency-based procedure for private companies.
Trademarks
| Topic | Essentials |
|---|---|
| Authority | Intellectual Property Department (IPD), Trade Marks Registry |
| System | First to file under the Trade Marks Ordinance (Cap. 559). Unregistered marks are protected only through passing off. |
| Time to registration | Approximately 6 to 9 months from filing to registration where there is no deficiency, objection or opposition; check the authority. |
| Classes | Nice Classification. One application may cover several classes; the official fee is a base amount for the first class plus a fee for each additional class (check the authority). |
| Opposition | 3 months from publication in the Hong Kong Intellectual Property Journal, with one 2-month extension available to an intended opponent. |
| Term | 10 years from the filing date, renewable for further 10-year periods. |
- A Hong Kong registration does not extend to mainland China, Macao or Taiwan; separate filings are needed.
- Application of the Madrid Protocol to Hong Kong has been in preparation for several years but was not yet in effect at the review date; check the authority.
- There is no register of trade mark agents; applicants need an address for service in Hong Kong, usually a law firm or agent.
- Substantive examination usually begins within about four months of filing. A refusal notice gives six months to respond, extendable.
- A registration unused for three continuous years is exposed to revocation.
Employment
| Topic | Essentials |
|---|---|
| Probation | Probation is contractual. During the first month of a probation period either party may terminate without notice or payment in lieu; after the first month the agreed notice applies, subject to a 7-day minimum. |
| Notice | For a continuous contract the agreed notice applies but must be at least 7 days; where the contract is silent, one month. Payment in lieu of notice is permitted. Check the authority: https://www.labour.gov.hk/ |
| Non-compete | Enforceable only if reasonable in the interests of the parties and the public and protecting a legitimate interest; Hong Kong courts have refused restraints that are wider than necessary and will not rewrite an unreasonable clause. Garden leave and non-solicitation are the more reliable tools. |
| Equity | Share option and share award plans are contractual documents adopted by the board with shareholder approval for the allotment under section 140 of the Companies Ordinance. Gains on exercise are chargeable to salaries tax; the Inland Revenue Department publishes guidance on timing and valuation. Check the authority. |
Products available here
Contracts: drafting and review
Counterparty Contract Review
Negotiation Playbook
Go-to-Market Contract Bundle
NDA Set
Master Services Agreement and SOW
Data Processing Agreement
Successor Programme Document Set
Shareholders' Agreement
Subscription and Share Transfer Documents
Intercompany Services Agreement
Board and Shareholder Resolutions Pack
Cross-Border Employment Contract
Secondment Agreement
Employee Share Option Plan
Executive Equity Grant
Family Holding and Trust Documents
IP rights: applications and portfolio
Trade Mark Search and Filing
IP Assignment and Licence
Technology Licence Agreement
IP Portfolio Management
Renewals and Annuities
Trademark Watch
Questions
Can we sign a Hong Kong share transfer electronically?
No. The instrument of transfer must be stamped under the Stamp Duty Ordinance, and stampable instruments are excluded from the Electronic Transactions Ordinance. Sign the transfer on paper; the shareholders' agreement and board resolutions may be signed electronically.
Do Hong Kong contracts need a company chop?
No. A signature by an authorised director binds the company. Chops are customary in Greater China practice and counterparties in the mainland often expect one, but Hong Kong law does not require it.
How does Hong Kong employment notice work during probation?
In the first month of probation no notice is needed either way. After the first month, the contract's notice period applies with a 7-day floor; if nothing is agreed, one month.
Will a Hong Kong trade mark protect us in mainland China?
No. The registries are separate. A mainland application through CNIPA (or a Madrid designation of China) is needed, and the mainland is first to file with a history of pre-emptive filings, so file early.
Is shareholder approval needed before we grant options?
Yes. Section 140 of the Companies Ordinance prohibits directors from allotting shares without prior shareholder approval, and the approval should cover shares issued on exercise of options.
Which language should our Hong Kong contract use?
English is standard and fully enforceable. If a Chinese version is also signed, add a prevailing-language clause so a court knows which text governs.
Guides
Sources
- Companies Registry ↗
- Intellectual Property Department ↗
- Labour Department: Concise Guide to the Employment Ordinance ↗
- Electronic Transactions Ordinance (Cap. 553) ↗
- Companies Ordinance (Cap. 622) ↗
- Inland Revenue Department: stamp duty ↗
Reviewed 26 October 2026. Rules and fees change; confirm with the authority before relying on them.
Documents and filings for Hong Kong
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