Partnership 好d 定係Limited Company 好d ?

Limited Company will be a much better option.

Limited Company have several advantages over partnership:
1) Limited liability, hence, if your friends signed some agreements on behalf of your company and default on their payments, you won't be liable for their actions. But in partnership, if your partner has signed anything on behalf of the company and he/she default on payment and disappear, the creditors are allowed to go to you and demand for payment (i.s. personal liability). Very risky.
2) Limited Company is a separate legal entity, thus, if your friend wanted to leave the company, he/she simply have to resign as director or transfer their shares, the company need not be close down. But in partnership, if one partner dies, or decide he/she doesn't want to continue, the whole company have to be closed down and new partnership agreement will have to be signed.

An only advantage to partnership is that it is relatively easier to set up and cheaper than set up a limited company, as limited company have statutory requirements to fulfil such as Memorandum of Articles, Company Kit, filing annual return to the Companies Registry, etc. It costs around several thousand to find an accountant/ company secretary to do the filing for you each year, but if you want to save costs, you could try to do it yourself.

All in all, I think it is to you and your friend's benefit to set up a limited company, as it can protect you from personal liability which may lead to your own bankruptcy.

Hope this helps.

A. Partnership

Advantages
1. Strong Working incentive
2. Simple setting up procedure
3. Close contact with employees and customers
4. Lower profit tax rate
5. More sources of capital
6. Wider scope of specialization
7. Cost and risk sharing


Disadvantage
1. One partnererrs, all partners suffer
2. Possible delay in making decision
3. Inflexible organization


B. Limited Company

Advantages
1. Limited liability
2. More sources of capital
3. Last continuity
4. Greater efficiency in management
5. Shares easily transferable


Disadvantages
1. Longer decision-making time
2. Weaker incentive
3. More complicated setting up procedure
4. Higher profits tax rate
5. Disclosure of information

I just want to point out the main disadvantage of partnership..........it is very difficult to maintain a good relationship between partners ga.

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