This 50-50 Profit Sharing Agreement is designed for use in Hong Kong business relationships where parties wish to establish an equal profit-sharing arrangement while maintaining separate legal identities. It's particularly suitable for joint ventures, collaborative business projects, or strategic partnerships where parties contribute different resources or capabilities but agree to share profits equally. The document addresses key requirements under Hong Kong law, including partnership regulations, contractual obligations, and tax considerations. It provides comprehensive coverage of profit calculation methodologies, distribution mechanisms, management rights, and dispute resolution procedures, while ensuring compliance with local regulatory requirements. This template is adaptable across various industries and business contexts, making it suitable for both traditional business partnerships and modern collaborative ventures.

1. Parties: Identification and details of all parties entering into the profit-sharing agreement

2. Background: Context of the agreement and the business relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Agreement: Details of the business activities covered by the profit-sharing arrangement

5. Term and Commencement: Duration of the agreement and conditions for commencement

6. Profit Calculation: Detailed methodology for calculating profits, including allowable expenses and accounting principles

7. Profit Distribution: Mechanism and timing for the distribution of profits between parties

8. Parties' Obligations: Specific responsibilities and contributions of each party

9. Management and Control: Decision-making processes and operational control mechanisms

10. Financial Records and Audit: Requirements for maintaining financial records and conducting audits

11. Confidentiality: Provisions protecting confidential information and trade secrets

12. Non-Competition: Restrictions on competing activities during and after the agreement

13. Termination: Circumstances and procedures for terminating the agreement

14. Dispute Resolution: Procedures for resolving disputes between parties

15. General Provisions: Standard legal provisions including notices, amendments, and governing law