Document background
The Business Transfer Agreement is a fundamental transaction document used in Hong Kong for the sale and purchase of business operations as a going concern. It is particularly relevant when a business owner wishes to transfer their entire business operation, including assets, contracts, employees, and liabilities, to a new owner. This document type is essential for ensuring compliance with Hong Kong's legal framework, including the Transfer of Businesses (Protection of Creditors) Ordinance, Employment Ordinance, and other relevant legislation. The agreement typically includes comprehensive provisions covering purchase price mechanics, asset transfer procedures, employee transitions, warranty protection, and post-completion obligations. It's commonly used in both small business sales and larger corporate restructurings, requiring careful consideration of Hong Kong's specific legal and regulatory requirements to ensure a valid and effective transfer of the business.
