Economic Project

Contents

Introduction

Business Registration

~Meaning

~Registration Procedure for Sole Proprietorship and Partnership

~Registration Procedure for Limited Company

~Registration Procedure for Overseas Company

~Registration Fee and Levy

~Payment Methods

~Cancellation

Sole Proprietorship

~Definition

~Popularity

~Set-up process

~Advantages

~Disadvantages

~Reason of suitable for Small Business

~Examples

Partnership

~Definition

~Features

~Forms/Establish

~Liability

~General partnership

~Limited partnership

~Advantages

~Disadvantages

~Tax rate

~Dissolution and Termination

Limited Company

~Meaning

~Advantages

~Disadvantages

~Private limited companies

~Public limited companies

~Shares

~Procedures of Formation

~Taxes

Comparison

Conclusion

Working Table

Public Limited Companies

Meaning

Public limited liability companies, despite their name, are the best known forms of private company. They are corporations and obtain their share capital from members of the public. Profits are distribution as dividends to shareholders and the liability of members is restricted to their shareholdings.

A Public Limited Company can issue shares for sales to the public. In Hong Kong, all the shares of Public Limited Company must be listed on Stock Exchange of Hong Kong Limited.1

Advantages

1.  Easy to raise fund

The company can raise more capital because shares of Public Limited Company can be quoted on the Hong Kong Stock Exchange and sold to public.

2.  Shareholders have limited liability

Disadvantages

1.  Complex and high set-up fee

Every Public Limited Company should be started from Private Limited Company. After a period of time, when the company meets the requirement of becoming Public Limited Company (e.g. turnover, profitable, history, etc) , it can apply for listing.

Before listing, the company should prepare company prospectus and obtain an underwriter.

Once all the shares are fully subscribed to, the Stock Exchange Council will allow the company quotes its shares on the stock exchange.2

1 Teach Yourself Business Studies - Peter Fearns

   Hodder & Stoughton Ltd (1998) P.13

2 http://www.sgasc.com/Types%20of%20company%20in%20HK%20%28English%29htm

P.31