The general partnership is used by two or more partners who have the same business goals and are willing to unite resources and experience for the success of the business. This type of company in Hong Kong is easy to set up and has advantages for its founders but it also brings unlimited liability. This is an important aspect when choosing the right type of entity.
Investors who want to open a company in Hong Kong can request the services offered by our agents. We can help you choose between a general partnership or a limited partnership and also explore other business options in Hong Kong.
We invite you to watch a video about the characteristics of the Hong Kong general partnership:
The advantages of the general partnership in Hong Kong
The general partnership has a simple setup process. The partnership, along with the sole proprietorship does not have to comply with the business registration requirements with which corporations have to deal. There are also no minimum share capital requirements.
The general partnership in Hong Kong must have at least 2 members and a maximum of 20 members. Because all the partners can combine their assets, the partnership will be able to raise enough capital easier than other business structures. Also, the partnership benefits from more relaxed reporting requirements and statutory requirements.
The combined resources and efforts of the partners can guarantee the success of the new business. The partnership can even grow in time and attract employees in Hong Kong.
Special considerations when setting up a general partnership in Hong Kong
While considering all the benefits of the general partnership and easy management options, investors must also pay close attention to a particular trait: all the partners have unlimited liability for the debts of the partnership. The founding members have no protection for the personal assets they invest in the partnership and partners can also be held liable for the wrongful acts of their co-partners. Also, the profits are shared between all partners.
The partners at our Hong Kong law firm can answer any questions regarding liability and any litigations that may arise as a result of a dispute between partners.
Call us now at + 852 8191 3385 to set up an appointment with our company formation experts in Hong Kong. As a DM Advisory client, you will benefit from the joint expertise of local lawyers and consultants for opening an offshore company in Hong Kong.
- prompt response to your inquiry (maxim 24 hours);
- cost-efficiency: competitive company formation prices;
- free and complete legal information featured on our site, at your disposal.