Document background
The Sole Trader Contract is a fundamental legal document used in Hong Kong business operations when engaging independent contractors operating as sole traders. This document is essential when a company wishes to formalize a business relationship with an individual service provider who operates independently rather than as an employee. The contract ensures compliance with Hong Kong's business registration requirements, tax regulations, and relevant ordinances while clearly distinguishing the arrangement from an employment relationship. It typically includes comprehensive terms covering service scope, payment structures, intellectual property rights, confidentiality, and liability provisions, tailored to meet both parties' commercial needs while adhering to Hong Kong's legal framework. This agreement is particularly important for maintaining clear boundaries in business relationships and protecting both parties' interests in the engagement.
