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

Features

  The partners provide the finance for the organization, and the profits and losses will normally be shared in an agreed proportion depending on the individual’s contribution to the partnership.1 A partnership is an association of two or more people who carry on as co-owners of a business. There are two basic kinds of partnerships: general and limited.2

Partnerships are particularly common in the financial service area, such as insurance and real estate agencies. They are also fairly common in retail trade and in the professions, such as law and accounting firms. Partnerships have several limitations that explain their relatively small share of business enterprise. Since partnerships involve an agreement between partners on the sharing of profits and the assets of the firm, the partnership agreement must be changed each time a partner dies or wants to sell her interest in the firm. Hence a new agreement is needed anytime there is a change in partners. This needs not be a serious problem for a firm with only few partners, but becomes cumbersome and hence impractical process.3

There are no requirements for a Hong Kong partnership to prepare audited accounts. However, audited accounts will be required if one of the partners is a company incorporated in Hong Kong since that partner has to prepare audited accounts every year. There are no foreign exchange restrictions on the outward remittance of the profits. An individual or company can freely remit its share of profits to other countries.4

1 Teach Yourself Business Studies - Peter Fearns

   London : Hodder & Stoughton (1998) P.13

2 Small Business Management: a planning approach - Joel Corman and Robert N.Lussier

 Times Mirror Higher Education Group, Inc. Company (1996) P.29

3 Exploring Economics (second Edition) – Robert L.Sexton

 South-Western, a division of Thomon Learning (2002) P.299

4 http://www.caa.com.hk/business/setup.html

P.18