As one of the key gateways to Asia, Hong Kong (HK) remains well-placed for companies that wish to expand into Asia while still working within a familiar system of laws.
INS Global forms the majority of its service Agreements under HK law. We do this for various reasons that ensure our agreements’ long-term stability and effectiveness. Below, we’ve summarized the most important ways you and your company would benefit from service agreements formed under HK law.
What is Hong Kong's Governing Law?
As a historically pro-business territory, HK’s labor and company regulations laws remain geared towards ensuring rapid and fluid legal protections for both employers and employees. After the transfer of HK to the PRC in 1997, it was decided to maintain the pre-existing system of business laws in HK. This is typically seen as one of the most significant reasons for HK’s success in the years since.
By establishing an agreement under HK jurisdiction, both client and provider agree to abide by HK’s business laws and settle any potential disputes via HK’s system of courts.
HK governing Basic Law is used to manage the potential risk in an agreement because it is based on a historical precedent of British common law. This protects business interests as a priority while also allowing for greater access to mainland China.
The Benefits of Hong Kong Law for Global Businesses
1. A Solid Historical Basis for Ownership
Despite mainland involvement at its highest levels, HK law remains primarily based on earlier British common law. This is generally regarded as an excellent legal code for business and prioritizes stability and ownership protection.
For international companies, this is particularly useful as it closely resembles that of other ex-British territories, including Australian, Canadian, and US law.
Hong Kong law is devoted to defending intellectual property rights. Strict rules from the Intellectual Copyright Department enforce copyright, patents, and trademarks for local and foreign companies.
2. A Simplified and Streamlined System of Free-market Business Processes
Hong Kong’s attraction is increased by the absence of foreign exchange controls, tariff-free exports to Mainland China, foreign ownership limits, and inbound and outward investment limitations. This makes Hong Kong’s system ideal for expanding firms, with solid protection for foreign exchange reserves and stringent anti-corruption policies.
Thanks to Closer Economic Partnership Arrangement (CEPA), businesses working in HK can benefit from simplified entry processes into the Chinese market on the mainland.
3. The Ideal System for Solving International Disputes
Hong Kong’s judiciary operates independently, giving companies unbiased judgment in the unfortunate event of disputes.
Owing to its well-developed legal system and its place at the historic center of international business in Asia, the city is known for being ideal for legal rulings. As a crossroads of East and West, HK is perfect for companies aiming to operate in China and the rest of the world.
Singapore Governing Law: How INS Global Offers Alternatives
While HK remains preferable for many, changing situations mean that some may prefer an alternative legal system to bind agreements with INS Global. That’s why we also offer options for all our service agreements to be formed based on Singaporean law.
Thanks to our offices and team of legal experts based in Singapore, all the agreements we make can be protected by one of the most stable legal systems in the world.
We can offer our full range of services based on whichever governing legal system best suits your long-term vision. Our experts will always be on hand to discuss and advise you on your needs.
