| Comparison
of Legal Entities |
|
|
|
Sole
Proprietorship |
Partnership |
Limited
Company |
| Difficulty
and Cost to Form |
Low |
Low
to moderate |
High |
| Difficulty
and Cost to Maintain |
Low |
Low |
High |
| Risk
of Owner Liability |
High |
High
(partners are jointly and severally liable) |
Low
(shareholders have limited liability) |
| HK
Profits Tax Rate (2003/4) |
15.5% |
15.5% |
17.5% |
| HK
Profits Tax Rate (2004/5) |
16.0% |
16.0% |
17.5% |
|
Flexibility
of Ownership; Bringing In New Owners
|
Low |
Moderate |
High |
| Cost
of Terminating Business |
Low |
Moderate |
High |
