Hong Kong may permit foreign firms to form LLPs
The Law Society of Hong Kong is drafting new rules and may permit foreign law firms to establish limited liability partnerships from next year.comments powered by Disqus
If they are approved by Hong Kong’s Legislative Council, the changes to local liability regulations will allow international firms to integrate their Hong Kong businesses with their international LLP networks
The new LLP rules would require firms to top up their professional indemnity insurance from HK$10m (£805,000) to HK$20m (£1.6m), irrespective of their size.
Hong Kong solicitor-general Frank Poon said the changes will lead to consolidation of the local industry and create more options for international firms.
Vincent Connor, Pinsent Masons’ Hong Kong managing partner, commented: “In terms of making Hong Kong law for businesses consistent with other jurisdictions where they have a modern approach to this sort of structuring, then it makes sense and makes Hong Kong law more fit for purpose.