General Partnership
This is the more common types of partnerships. All partners share equally in:
Management responsibilities
Profits of the business
Unlimited liability for debts and obligations (meaning personal assets are at risk if the business can't cover its debts)
Registering a New Partnership Business in Hong Kong
Registering a new partnership business in Hong Kong involves registering with the Inland Revenue Department (IRD). Here's a general guide:
Before You Apply:
Choose a Business Name: Ensure your chosen name isn't already registered with the Companies Registry. You can conduct a free search on their website.
HKID or Passport: Have a copy of each partner's Hong Kong Identity Card (HKID) or passport for identification purposes.
The Registration Process:
1. Obtain the Application Form: Download and complete form IRBR194 "[IRD business registration hong kong]" from the Inland Revenue Department (IRD) website.
2. Complete the Application Form (IRBR194): Fill out the form with your business details, including:
Business Details:
Business name
Business address (principal place of business in Hong Kong)
Business phone number (optional)
Nature of your business (brief description)
Partners' Details:
Full name of each partner
HKID card number or passport details (residential address for non-HKID holders)
Contact details (phone number and email address) for each partner (optional)
3. Submission Options: You can submit the application within one month of commencing your business operations through:
In Person: Business Registration Office, 4/F Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong.
By Mail: P.O. Box 29015, Gloucester Road Post Office, Hong Kong.
Online: eTAX on GovHK (for registered users only). You'll need to register for eTAX beforehand.
Additional Considerations:
Business Registration Certificate (BRC): Upon successful registration, you'll receive a Business Registration Certificate (BRC) as proof of registration.
Tax Obligations: Registering your business with the IRD makes you liable for relevant business taxes. You can find information on business tax types and filing procedures on the IRD website [IRD business registration hong kong].
Licenses and Permits: Depending on your business activity, you might need additional licenses or permits. The government's Business Licence Information Service can help you determine these requirements [business license information hk ON GovHK [URL]].
Frequently Asked Questions about Partnership Business Registration in Hong Kong
Here are some commonly asked questions regarding partnership business registration in Hong Kong:
Do I need to register my partnership business?
Yes, any business operating in Hong Kong for profit must register with the Inland Revenue Department (IRD), including partnerships (both general and limited). This applies even for small-scale operations or online businesses.
What are the exemptions for business registration?
There are a few exceptions, including:
Charitable organizations (except those subject to profits tax)
Activities in agriculture, market gardening, or fishing (excluding companies incorporated under specific ordinances)
Specific hawker businesses with licenses
What type of partnership should I choose (general vs. limited)?
A general partnership is simpler to set up but comes with unlimited liability for all partners. A limited partnership offers some protection for limited partners (liability limited to investment amount) but involves a more complex structure. Consider your risk tolerance and level of involvement for each partner when deciding.
What documents do I need to submit for registration?
Completed application form IRBR194
Chosen business name (ensure it's not already registered)
HKID card copy or passport copy for each partner
Business address in Hong Kong
Brief description of your business nature (optional)
Partner contact details (phone number and email, optional)
How long does the registration process take?
The IRD typically processes applications within a week if everything is in order.
What happens after successful registration?
You'll receive a Business Registration Certificate (BRC) as proof of registration. This allows you to open a business bank account and operate legally.
What about taxes?
Registering your business makes you liable for relevant business taxes. The IRD website provides information on tax types and filing procedures.
Do I need any licenses or permits besides registration?
Depending on your business activity, you might need additional licenses or permits. Check the government's Business Licence Information Service for specific requirements.
Should I consult a professional?
For complex partnership structures, specific industry regulations, or general legal advice, consulting a lawyer or accountant is recommended.
Additional Information:
You can register your business within one month of commencement.
Further Resources:
Here are some resources to learn more about partnerships in Hong Kong:
Wikipedia: Partnership (Hong Kong) ON Wikipedia en.wikipedia.org
Bestar Asia: Limited or General Partnerships in Hong Kong Advantages and Disadvantages
Bestar: Types of Partnerships
IRD Business Registration: IRD business registration hong kong
GovHK Business Registration: business registration hk ON GovHK [URL]
How Bestar can Help
Bestar can be a valuable asset when registering a partnership business in Hong Kong, especially for navigating complexities or seeking specific guidance. Here's how we can assist:
Business Structure: Bestar can advise on the most suitable partnership structure (general vs. limited) considering factors like liability and partner involvement.
Tax Implications: We can explain relevant business taxes you'll be liable for and help you understand tax filing procedures.
Financial Planning: We can assist with financial projections and planning for the business, including bookkeeping and cash flow management.
Legal Compliance: Bestar can ensure your partnership agreement complies with Hong Kong business laws and regulations.
Contract Review: We can review and draft contracts with vendors, suppliers, or employees.
Here's a breakdown of when Bestar might be most helpful:
Consult Bestar for tax concerns, financial planning for the business, or choosing the most tax-efficient partnership structure.
Seek Bestar advice for drafting a partnership agreement, or navigating complex business contracts.
In conclusion:
While registering a partnership in Hong Kong can be done independently, Bestar can provide valuable guidance and ensure your business is set up correctly to minimize risks and maximize success. Consider your specific needs and the complexity of your partnership structure when deciding if professional help is right for you.
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