Laws of selling online Internationally from Hong Kog

I would be grateful for advice about selling online internationally. I would like to make a website to sell jewery but do not know who can give the best advice. Any information very much appreciated! With many thanks, MissyS

[UPDATE] Please note that fee quotes stated in historic postings may be out-of-date.


Typically, the laws of contract apply to business conducted on the internet. “Bricks and motor” notions of ‘offer’ and ‘acceptance’, ‘misrepresentations’, ‘breach’ and ‘damages’ are all relevant as a back drop of doing business on the net. As such the agreement that would be core to your suggested enterprise would be the contract for the sale of your jewelry: what are the terms – payment; delivery; description of goods; quality; etc. These terms are typically posted on your website through the use of click on Disclaimer/Agreements/Terms.


You may consider setting up your online business as a corporation or a sole proprietorship. A sole proprietorship is conducted by one person only; one runs the business on your own without sharing your business with anybody but at the same time you are wholly liable for all the debts incurred in the business. Alternatively, you may consider setting up your business by forming a private limited company, one major advantage is your liability in the operation of a business can be limited within this ‘new entity’.


If a contract is made between two persons or companies in different countries over the Internet, then that contract will typically be enforced by the law of the place with the closest connection to the contract (e.g. place of contracting, the place where the contractual duties are performed, the places of residence or businesses of the parties, and the nature and subject matter of the contract or another relevant factors to the contract). In terms of taxation, the tax law of the place where the profits are made will most often apply.


Moreover, a disclaimer should be added to your website to specify or limit the scope of rights and obligations that may be exercised and enforced by parties in a legally recognized relationship.


The above information available is for reference only. You should seek legal advice before proceeding, please contact us to set up a consultation with one of our senior solicitors. The cost for preliminary consultation would be HK$2,800.


Weir & Associates

Solicitors & Notaries

16th Floor Tak Shing House

20 Des Voeux Road Central

Central

Hong Kong

Tel : 2526-1767

Fax : 2868-3568

Email : WeirLaw@weirandassociates.com

www.weirandassociates.com/weirlaw