Creating and Managing a Partnership in Hong Kong

Creating and Managing a Partnership in Hong Kong

A presentation brought to you by OpenCompanyHongKong.com

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The Partnership in Hong Kong

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• The Hong Kong partnership is a type of business entity that can be opened by two or more investors who have the same business goals and are willing to share profits.

• This business structure has a series of advantages but investors also need to pay attention to liability when opening a partnership.

The General Partnership in Hong Kong

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• In the general partnership two or more individuals are jointly liable for the debts and obligations of their business.

• There is no distinction between the personal and the business assets but this business form does not require a minimum share capital.

The Limited Partnership in Hong Kong

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• The limited partnership in Hong Kong offers more asset protection compared to the general one.

• Two or more individuals combine their assets and efforts but one of them can act as a general partner with unlimited liability while others act as limited partners, liable only to the extent of the invested capital.

The Advantages of the Hong Kong Partnership

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• Both the general partnership and the limited partnership in Hong Kong are easy to incorporate and require less management costs than other types of companies.

• The fact that there is no minimum share capital for the general partnership makes it a good choice for business owners who can later expand their business.

Partnership Registration in Hong Kong

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• Partnership set-up and compliance in Hong Kong is governed by the Partnership Ordinance.

• Limited partnerships are registered with the Companies Registry and for this purpose the investor must provide a registration form and submit the necessary fees.

Partnership Taxation in Hong Kong

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• Hong Kong partnerships are taxed on their profits produced in the city but at a lower rate than Hong Kong companies.

• A taxation exception applies if one of the members of a limited partnership is a company.

Partnership Management in Hong Kong

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• Investors who open a partnership in Hong Kong enjoy lower set-up and maintenance costs than in the case of companies. The registration process is less complex and the initial start-up costs are lower.

• Partnerships can be expanded once the business grows and they can easily raise capital.

Other Options for Investors in Hong Kong

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• Investors who want to open a separate legal entity and have limited liability can open a limited liability company.

• This business form is preferred by small and medium sized businesses. One of our company formation agents in Hong Kong can help you convert a partnership into a company.

Assistance for Creating Partnerships in Hong Kong

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• Partnerships in Hong Kong allow investors to increase their chances of raising funds while sharing responsibility.

• If this business form is suited for your needs, you can contact our company formation specialists in Hong Kong for partnership set-up and management assistance.

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