establish a partnership in hong kong
TRANSCRIPT
Establish a Partnership in Hong Kong
A presentation brought to you byLawFirmHongKong.com
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The Partnership in Hong Kong
• Investors who share the same business goals and wish to share profits can open a partnership in Hong Kong.
• This business structure is formed by two or more individuals who will share the costs and liabilities.
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Types of Partnerships in Hong Kong
• According to the Partnership Ordinance, there are two types of partnerships in Hong Kong:
the General Partnership, the Limited Partnership.
• The difference between the two is in the liability of their members.
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The General Partnership in Hong Kong
• The general partnership in Hong Kong is formed by two or more individuals who are both liable and can be responsible for the actions of their partner.
• This business form does not require a minimum share capital and has low maintenance requirements. Employees can be brought into the partnership and they can be given the option to become a partner.
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The Limited Partnership in Hong Kong
• Like the general one, the limited partnership in Hong Kong does not require a minimum share capital and is formed by two or more individuals.
• The founders are not jointly liable. There are two types of partners here, the general partner who has full liability and the limited partner who is only liable to the extent of his investments in the partnership.
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Advantages of Partnerships in Hong Kong
• Hong Kong partnerships are easy to set-up and maintain. Compared to other types of companies, partnerships are easier to establish and have minimal reporting requirements.
• The partnership can easily raise capital, especially if more partners join the business.
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Partnership Registration in Hong Kong
• Partnerships in Hong Kong need to be registered with the Inland Revenue Department within one month after commencing their activities.
• A Business Registration Certificate is obtained after the registration and any subsequent changes in the management of the partnership must be notified to the Companies Registry.
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The Taxation of Partnerships in Hong Kong >>
• Partnerships are subject to the profits tax in Hong Kong. The rate is lower for these types of entities than for limited liability companies.
• Taxation in Hong Kong is territorial, meaning that a partnership will be taxed on its profits derived from Hong Kong.
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Terminating a Partnership in Hong Kong
• The dissolution of a limited partnership is similar to the procedure used for closing a limited liability company. In this case, the general partners will oversee most of the procedure.
• General partnerships may be terminated if the partners no longer share the same business goals.
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Assistance for Partnership Formation in Hong Kong
• The partnerships' low set-up and maintenance costs make them affordable and profitable for individuals who have a view of sharing profits.
• Our Hong Kong law firm provides complete company incorporation services, including for limited and general partnerships in Hong Kong.
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