A general partnership in Hong Kong is a collaborative venture where two or more partners unite resources and expertise for shared business goals. This business structure is easy to establish, offering advantages for founders, albeit with the trade-off of unlimited liability.
Hong Kong’s straightforward setup process and exemption from certain business registration requirements make it an appealing option for entrepreneurs. A general partnership can have 2 to 20 members, allowing them to pool resources for capital more efficiently. This structure benefits from relaxed reporting and statutory requirements, fostering a conducive environment for growth and potential employee attraction.
The Partnership Ordinance governs key aspects of general partnerships in Hong Kong, emphasising shared management responsibilities and income generation through salaries if partners assume managerial roles. Registration with the Business Registration Office is mandatory within a month of commencement, subjecting the structure to a 16.5% corporate income tax rate on worldwide profits.
While offering simplicity in management, general partnerships necessitate careful consideration of unlimited liability, exposing partners’ personal assets to business debts. Additionally, partners share profits and bear responsibility for co-partners’ actions. Investors must weigh these considerations alongside the structure’s benefits when opting for a general partnership in Hong Kong.
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To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
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Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
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A general partnership in Hong Kong is a collaborative venture where two or more partners unite resources and expertise for shared business goals. This business structure is easy to establish, offering advantages for founders, albeit with the trade-off of unlimited liability.