This type of business is beneficial for two or more business partners who are willing to deal with the same commercial activities.
This type of business is beneficial for two or more business partners who are willing to deal with the same commercial activities and agree upon dividing the degree of responsibility between them: either limited or unlimited.
Normally, the general partners of this entity are pretty experienced business persons who are completely involved in the decision-making process and have unlimited liability for business debts. On the contrary, the limited partner can be the business or an individual who provides you with the financial resources to a limited partnership. A limited partner shall not during the continuance of the partnership, either directly or indirectly, draw out or receive back any part of this contribution, and if he does so draw out or receive back any such part, shall be liable for the debts and obligations of the firm up to the amount so drawn out or received back. A limited partner shall not take part in the management of the partnership business, and shall not have power to bind the firm. Provided that a limited partner may by himself or his agent at any time inspect the books of the firm and examine into the state and prospects of the partnership business, and may advise with the partners thereon.
However, for this business, the one who will act as the general partner has the freedom to run the business. The limited partners, who are not liable for the debts or wrongful acts of other partners, make it easy to raise capital. Therefore, this is the best option for people who want to act as a limited partner.
What are the characteristics of a Hong Kong Limited Partnership?
As soon as you get the understanding of what a Hong Kong limited partnership stands for, the next thing you should learn is the characteristics of this type of business entity.
Hong Kong Limited Partnership Key Features:
- Pass-Through Taxation
- Less Paperwork
- Business Liabilities
Hong Kong Limited Partnership Registration
There is no denying the fact that the Hong Kong limited partnership must be registered with the Companies Registry. And as soon as you register your business, then a certificate of registration of Limited Partnership is issued, and after that, the partners can easily commence their commercial activities. Well, the application for registration needs to be accompanied by a registration fee and an extra fee per each 1,000 HK$ contributed by the limited partners.
And for the sake of partner rights and obligations, the Hong Kong limited partnerships founders may select to conclude a limited partnership agreement or follow the general rules outlined in the Partnership Ordinance.
For instance: The partners are elected to equal shares in profits and capital, they may take part in the management of the business; however, the limited partners may choose not to do so and the introduction of any new member is made only by prior approval from the existing members.
Hong Kong Limited Partnership Registration with Startupr
Understood all the important information about Hong Kong Limited Partnership registration, right? Do you want to incorporate your business as a limited partnership? Then you will be amazed to know that in Hong Kong, the procedure of launching a limited partnership is quite straightforward than for other business entities.
In fact, it doesn’t require minimum share capital. If you are ready to operate this business, then hire a professional like Startupr. At Startupr, you can enjoy services like company registration, and incorporation services that include the utilization of their Hong Kong office address as your registered address, the filing of your company’s tax return, handling the issues of the government, incorporating the company,provide registered agent services, and a lot more.
You only need to pay the incorporation Price of Limited Partnership about $1534 USD and for renewal price of Limited Partnership, all you need $785 USD.
Are You Ready to form Your Limited Partnership Company in Hong Kong? Choose Startupr! And just incorporate your business with Startupr! With the help of our Back Office system, get round-the-clock access and fast company services through Startupr and the HK government Companies Registry (CR) office.