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

Limited partnership

  Limited Partnerships are created in order to limit liability of the partners as well as to facilitate the contribution of capital without incurring unlimited liability. As the primary weaknesses of a partnership include unlimited liability, an inability to raise needed capital, and the difficulty of managing the partnership itself, another form of the partnership agreement was developed. The limited partnership allows people to carry on as co-owners where some of the partners have more responsibility and power in running the business. These partners (general partners), therefore, have the burden of more liability than other partners, whose roles are more limited (limited partners). In a limited partnership, at least one partner has unlimited liability and responsibility for the operation of the firm. Other partners in the organization are designated as limited partners. These limitations involve both liability as well as management obligations. Limited partners cannot take an active role in running the business. Naturally, the terms of the relationship should be specified in the partnership agreement.1

The features of limited partnership:

~ Some partners with limited liability, and at least one partner with unlimited liability.

~ Cannot manage the firm.

~ Is not allowed to withdraw his capital.2

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

 Times Mirror Higher Education Group, Inc. Company (1996) P.31

2 http://www2.hkedcity.net/sch_files/a/phc/phc-016112/public_html/unitproduction.htm

P.22