As has already been said, the process of setting up a limited partnership in Hong Kong is much simpler and simpler than for a company and other companies and does not require minimum capital. While this type of partnership requires more steps to create an individual contractor, limited partnerships have significant creative costs than the general partnership. The relationship between members of a company or group that: (a) is registered under a regulation relating to the registration of limited companies as a company; or b) that was created or incorporated by or as a result of another regulation or adoption or instrument is not a partnership within the meaning of the Partnership Regulation. In the meantime, you should have a better idea of the pros and cons of limited partnerships in Hong Kong, and more importantly about your company`s registration process. Partnerships are a very practical form of business when they can be exploited effectively. In fact, it`s a fairly simple business structure and requires less paperwork to get started. Unlike a limited company, each partner is personally responsible for the actions of the other partners and all the company`s debts. On the other hand, all partners have the right to participate equally in the company`s profits, unless they agree otherwise. The transfer of interests in the company to existing or new partners may be made in accordance with the partnership agreement or any other agreement reached by all partners.
In practice, there is little market to transfer the interests of a partnership to public investors. Once you know what a limited partnership is in Hong Kong, you should then learn the characteristics of this type of entity. Limited partnerships are a type of business entity that is best suited to two or more partners who wish to work together on business activities. If you involve your business as a limited partnership, you will have less to worry about raising money for your new business projects, as nothing can scare potential investors more than the idea of being personally responsible for a company`s mistakes. The Business Registration Regulation (Chapter 310 of Hong Kong Law) requires anyone who runs a business in Hong Kong, whether it is an individual company, a corporation or a limited company, to declare the business within one month of the date of the activity and to present a valid operating certificate at the place of activity. For more information on the application process, fees, as well as an application form template and certificate, please visit the Department of Internal Revenue`s website. In a general partnership, all partners are Kompleiner, so everyone is responsible for all the debts and obligations of the company.  Bankruptcy and liquidation are methods of closing a business (or another person`s business) and should only be considered as a last resort. Bankruptcy is a bankruptcy action that is brought against individual companies or partnerships, while liquidation is directed at limited companies. For more information, see the issue of bankruptcy and liquidation.