Hong Kong: Types of Company
The law is contained in the Limited Partnership Ordinance. Limited partnerships have the following characteristics:
- The maximum number of partners permitted by law is 20;
- Limited partnerships consist of general and limited partners; there must be at least one general partner whose liability for the firms debts is unlimited; the remaining partners are limited partners whose liability is limited to the amount of their unpaid share capital;
- A limited partner cannot reduce or take out his share capital whilst the partnership continues in existence and is not allowed to take an active part in the management of the partnership nor bind the same vis a vis third parties in default of which provision he assumes the liability of a general partner;
- Limited partnerships must be registered at the Companies Registry under the Limited Partnership Ordinance in default of which they are deemed to be general partnerships with unlimited liability for each and every partner;
- All partnerships are required to obtain a business license under the provisions of the Business Registration Ordinance which license costs US$340 per annum.