General Partnership in Hong Kong

General Partnership · Formation from $300

Last verified: June 13, 2026

Corporate Tax

15.0%

State Tax

0.0%

Formation Cost

$300

Annual Fee

$300

Comparison Scores

Privacy, remote setup, banking, and tax efficiency

Privacy4/10

Remote Setup6/10

Banking5/10

Tax Efficiency8/10

Overall Score5/10

Calculate full formation cost

Break down one-time filing fees and recurring costs for any supported entity type.

Who Should Choose This?

Profiles that typically benefit from this entity

Professional service providers (consultants, small accounting or design firms) who want a simple, low-maintenance structure.
Small family businesses or close-knit teams with a high degree of mutual trust.
Entrepreneurs testing a business idea who want to minimize initial compliance and audit costs.
Businesses that do not require significant external funding, venture capital, or complex equity structures.

Who Should Avoid This?

Scenarios where another structure may be better

Startups planning to raise venture capital or issue equity/stock options to employees.
High-risk businesses (e.g., manufacturing, heavy trading) where unlimited liability poses a severe threat to personal assets.
Founders who do not have a strong, pre-existing relationship of trust with their co-founders.

Advantages

+Easy and inexpensive to set up with no minimum share capital or complex incorporation process.
+Fewer statutory controls and compliance requirements compared to limited companies (no requirement to file audited accounts).
+Flexibility in internal structure and management, allowing partners to run the business via a custom Partnership Agreement.
+Profits are taxed at a lower rate for unincorporated businesses (7.5% on the first HKD 2 million, 15% on the remainder).
+Easier to dissolve or restructure compared to a formal limited company.
+Allows pooling of resources, capital, and expertise from up to 20 partners.

Disadvantages

-Unlimited personal liability for all partners; personal assets are at risk for business debts.
-Joint and several liability means each partner is fully responsible for the actions and debts incurred by other partners.
-No separate legal entity status; the partnership cannot own property or enter contracts in its own name.
-Limited to a maximum of 20 partners; exceeding this requires formal incorporation as a company.
-Harder to raise external capital or attract investors compared to a limited company since equity shares cannot be issued.
-The partnership may automatically dissolve upon the death, bankruptcy, or withdrawal of a partner unless the agreement states otherwise.

Formation Steps

Choose a unique business name that complies with the Business Registration Ordinance.

Draft and sign a comprehensive Partnership Agreement detailing profit sharing, roles, and dissolution terms.

Pay the Business Registration Fee and PWIF Levy (HK$2,350 for a 1-year certificate as of April 2026).

Obtain the Business Registration Certificate (BRC) and display it prominently at the principal place of business.

Open a corporate bank account in Hong Kong, which requires the BRC, partnership agreement, and KYC for all partners.

Apply for any specific industry licenses or permits required for your business activities.

Cost Breakdown

Detailed breakdown of formation and ongoing costs

Item	Type	Amount
State filing fee (Business Registration Certificate + PWIF Levy)	Annual	$300
Partnership Agreement drafting (Legal fees, optional but recommended)	One-time	$1,000
Virtual Office / Registered Address	Annual	$300
First year total		$1,600
Annual ongoing		$600

Real-World Examples

Typical use cases for this entity type

Small local retail shops or family-owned restaurants operating in Hong Kong.
Boutique consulting, marketing, or creative agencies formed by two or three trusted colleagues.
Local trading or service businesses that operate on a small scale before transitioning to a Limited Company as they grow.

Common Mistakes

Pitfalls to avoid during setup and operations

Operating without a formal, written Partnership Agreement, leading to severe disputes over profit sharing and roles later.
Failing to register with the Business Registration Office within one month of starting operations, resulting in fines.
Misunderstanding joint and several liability (assuming you are only liable for your 'share' of the business debt).
Not planning for the departure, death, or bankruptcy of a partner, causing sudden and forced dissolution.
Mixing personal and business finances, which complicates tax filings and exposes personal assets further.

Other entity types

Other formation options in Hong Kong

Private Company Limited by Shares

Primary

Tax: 16.5%
Formation: $499

Public Company Limited by Shares

Tax: 16.5%
Formation: $499

Company Limited by Guarantee

Tax: 16.5%
Formation: $321

Branch Office

Tax: 16.5%
Formation: $500

Representative Office

Tax: 16.5%
Formation: $300

Sole Proprietorship

Tax: 15.0%
Formation: $301

Limited Partnership

Tax: 15.0%
Formation: $345

Limited Partnership Fund

Tax: 16.5%
Formation: $389

Compare with Other Countries

Country / Type	Tax	Formation	Annual
🇭🇰 General Partnership(General Partnership)	15.0%	$300	$300

🇭🇰 vs 🇺🇸 United States 🇭🇰 vs 🇪🇪 Estonia 🇭🇰 vs 🇬🇧 United Kingdom 🇭🇰 vs 🇮🇪 Ireland All comparisons →

FAQ

Is a General Partnership a separate legal entity in Hong Kong?

No, it does not have a separate legal personality. Partners are personally liable for all business debts and obligations.

Do we need to file audited accounts?

No. Unlike limited companies, general partnerships are not required to file audited financial statements, which significantly reduces annual compliance costs.

What is the maximum number of partners allowed?

A general partnership in Hong Kong can have a maximum of 20 partners. If you exceed this number, you must incorporate as a company.

How are profits taxed in a General Partnership?

Profits are assessed under the Profits Tax for unincorporated businesses: 7.5% on the first HKD 2 million and 15% on the remainder.

Can foreign nationals form a General Partnership in Hong Kong?

Yes, but non-resident partners must appoint a local agent to handle tax returns, and opening a local bank account may require a physical visit.

What happens if a partner leaves or passes away?

Unless the Partnership Agreement explicitly specifies otherwise, the departure, death, or bankruptcy of a partner can cause the automatic dissolution of the partnership.

How much does it cost to register?

As of April 2026, the 1-year Business Registration Certificate fee (including the reinstated PWIF levy) is HK$2,350 (approximately USD 300).

Do we legally need a written Partnership Agreement?

It is not legally mandatory to have a written agreement, but it is highly recommended to prevent disputes over profit sharing, liabilities, and management.

Detailed Tax Rates

Corporate Income Tax

From	To	Rate
$0	$2,000,000	7.5%
$2,000,000	No limit	15.0%

Hong Kong applies a two-tiered profits tax regime. For unincorporated businesses like general partnerships, the first HKD 2 million of assessable profits is taxed at 7.5%, and the remainder at 15%.

Personal Income Tax (Top rate: 17.0%)

From	To	Rate
$0	$50,000	2.0%
$50,000	$100,000	6.0%
$100,000	$150,000	10.0%
$150,000	$200,000	14.0%
$200,000	No limit	17.0%

Salaries tax is charged at progressive rates up to 17%. However, the total tax payable is capped at a standard rate of 15% on the first HKD 5 million of net income and 16% on the remainder.

Capital Gains Tax

0.0%

Hong Kong does not impose a capital gains tax. However, gains from the disposal of assets may be subject to profits tax if the Inland Revenue Department deems them to be trading in nature.

VAT / GST

0.0%

Hong Kong does not levy any Value Added Tax (VAT), Goods and Services Tax (GST), or general sales tax.

Withholding Tax

Dividends0.0%

Royalties5.0%

Interest0.0%

Hong Kong does not levy withholding tax on dividends or interest. Royalties paid to non-residents are subject to withholding tax at an effective rate of 4.95% for corporations (or up to 16.5% if paid to an associated entity).

Payroll & Social Security

Employer5.0%

Employee5.0%

Both employers and employees must contribute 5% of the employee's relevant income to the Mandatory Provident Fund (MPF), capped at HKD 1,500 per month each.

Other Taxes

Property Tax

Property tax is charged at a standard rate of 15% on the net assessable value of land or buildings situated in Hong Kong.

Stamp Duty

Stamp duty is levied on certain documents relating to the transfer of immovable property in Hong Kong and the transfer of Hong Kong stock.

Banking & Payments

Airwallex

Remote-friendly

A leading global financial platform offering multi-currency accounts, corporate cards, and fast remote onboarding for Hong Kong businesses.

Statrys

Remote-friendly

A popular fintech alternative in Hong Kong providing multi-currency business accounts, forex services, and dedicated account managers.

HSBC Hong Kong

One of the largest traditional banks in Hong Kong. Excellent for local operations but typically requires an in-person visit and extensive KYC.

Currenxie

Remote-friendly

A digital business account provider offering global virtual accounts and competitive foreign exchange rates for cross-border trade.

Payment Gateways

Stripe, PayPal, Airwallex, Checkout.com, Adyen, 2Checkout

Currency

HKD

Multi-Currency: Supported

Account Opening

Opening a traditional bank account in Hong Kong can be challenging for non-resident partners due to strict Anti-Money Laundering (AML) regulations, often requiring an in-person interview. However, digital alternatives like Airwallex and Statrys offer a fully remote and streamlined onboarding process. These fintech platforms are highly recommended for foreign founders to quickly access multi-currency banking.

Practical Information

Timezone

UTC+8

Business Language

English and Chinese (Cantonese/Mandarin)

Legal System

Common Law

Ease of Doing Business

IP Protection

Hong Kong offers robust intellectual property protection, operating under a separate legal framework from Mainland China. It strictly enforces patents, trademarks, and copyrights in accordance with international standards, making it a safe jurisdiction for IP holding.

Double Tax Treaties

57 countries

Notable treaties: Mainland China, United Kingdom, Japan, France, Canada, United Arab Emirates

Visa & Residency Options

Investment as Entrepreneurs (GEP)

A visa designed for founders who plan to establish or join a business in Hong Kong. Applicants must demonstrate that their business will make a substantial contribution to the local economy, such as creating jobs or utilizing local services.

Top Talent Pass Scheme (TTPS)

Aimed at attracting highly skilled individuals, this scheme is open to high earners or graduates from the world's top universities, allowing them to explore business and employment opportunities in Hong Kong.

New Capital Investment Entrant Scheme (New CIES)

A residency pathway for high-net-worth individuals who invest a minimum of HKD 30 million in permissible financial assets and non-residential real estate in Hong Kong.