THE Hongkong Government is trying to make life easier for lawyers advising corporate clients with unclear corporate status because of their domiciles. The Foreign Corporations Bill, scheduled to be introduced in Legco on July 21, is a response to a concern among local lawyers about the uncertain status of companies incorporated in territories not recognised by the United Kingdom. The bill will now recognise companies incorporated in countries such as Cyprus. ''The effect of the act is to put beyond doubt that obligations flowing from contracts entered into by those corporations are enforceable,'' a Government spokesman said. Businessmen dealing with such companies can now conduct their transactions secure in the knowledge that their contracts will more likely than not be honoured and that they will be able to seek legal recourse if contracts are rescinded. The bill is modelled on the UK Foreign Corporations Act 1991 and is strictly a solution to a commercial problem. It has no bearing on recognition of states. According to corporate lawyer Michael Spurling, the bill rectifies an omission in the existing law. Under the existing law, companies facing the most problems were those incorporated in countries with no diplomatic recognition by Britain. The UK Government faced similar problems, which resulted in the enactment in 1991 of the Foreign Corporations Act to enable the legal capacity of foreign corporations incorporated under the laws of unrecognised states to be accepted. It is too soon to assume that such companies will be 100 per cent accountable to the laws of Hongkong. A Government official cautioned that international political climates were constantly changing and there would always be people who would be ready to argue for exemption and non-recognition of laws.