| Owned | Partnerships | Private limited company |
Number of shareholders | 1 person | 2 to 20 people | 1 to 50 people |
Legal Status | There is no independent legal status, and only the proprietor can own assets and sign contracts in his private name | There is no independent legal status, and only co-ownership of assets and signing contracts in the name of partners | It is a legal entity with an independent legal status, and the company can own assets and sign contracts |
Debt Liability | The proprietor is liable and must be fully liable if the company becomes insolvent. | Except for the limited partnership partners, the rest of the partners are unlimited liability; If the company becomes insolvent, the partners must be fully liable. | All shareholders have limited liability, limited to capital contributions, and if the company becomes insolvent, the company is only required to be wound up, and the shareholders are not liable. |
Year-end taxes | No audit required, no deduction for personal expenses (including the salary of the proprietor and his/her spouse) | No audit, no deduction for personal expenses (including salaries of partners and their spouses) | Must be audited and all normal expenses of the company can be deducted (directors’ remuneration can be deducted by the company and converted to personal assessment tax) |
Other things to know | An annual business registration fee is payable. However, the business registration fee may be waived in certain circumstances. | An annual business registration fee is payable. However, the business registration fee may be waived in certain circumstances. | A business registration fee must be paid annually and an annual return and registration fee must be filed with the Companies Registry. |
