Establish a Partnership in Hong Kong
Establish a Partnership in Hong KongUpdated on Thursday 07th April 2016
based on 3 reviews
A partnership is a business organization operated and managed by two or more individuals. The owners are equally liable for the business’ debts. Partnerships in Hong Kong can be run by a high number of partners. In order to establish a partnership in Hong Kong, asking for the guidance of a lawyer in Hong Kong might be the appropriate thing to do.
Advantages of Hong Kong partnerships
There are various reasons for which a foreign entrepreneur should choose to open a partnership in Hong Kong and the main ones are the following:
- - there are no registration demands with the Companies Registry;
- - there is no minimum capital required;
- - it is one of the easiest forms of company formation in Hong Kong;
- - comparing to the other types of legal entities, a partnership is rather easier to maintain (from a financial point of view).
Partnerships are governed by the Partnership Ordinance in Hong Kong and fall into two categories: the general partnership and the limited partnership. Our law firm in Hong Kong can make sure that your business will operate as soon as possible and that you will establish the type of partnership that can suit your business interests.
Our lawyers invite you to watch a video about partnerships in Hong Kong:
Hong Kong General Partnership
General partnerships in Hong Kong imply making every partner of the company liable for the debts of the running business. The advantages of a general partnership are as follows:
- ● the combined expertise, which can be reached by means of gathering together the partners’ skills, resources, and knowledge;
- ● the fact that it can attract employees (by giving the incentive that they can become partners of the firm);
- ● easiness of raising capital, as the financing sources include extended bank loans (on the basis of combined financial power of all partners) and loans from the actual partners.
Our Hong Kong attorneys will provide you with complete input on the advantages of establishing a Hong Kong general partnership.
Limited partnership in Hong Kong
Limited partnerships are comprised both of general partners as well as from limited ones. General partners have unlimited liability for the firm’s debts, while limited partners cannot take part in the management of the partnership and the advantage is that they can leave and/or be replaced without the dissolution of the entire partnership.
Limited partnerships rejoice from having fewer compliance demands in comparison to other companies.
Feel free to contact our Hong Kong law firm who can counsel you through all the steps that need to be completed in order to establish a partnership in Hong Kong.