简 繁 EN Follow us
Commercial Organization Types

In General, a company in Hong Kong can be setting up by means of through the establishment of a new company or acquiring existing businesses or joining a franchise business. Hong Kong companies can be divided into sole proprietorship, partnership and Limited Company.

Hong Kong companies can be divided into Sole Proprietorship, Partnership and Limited Liability Co. three kinds of business, are outlined below:

Types of Commercial Mechanism Sole Proprietorship Partnership Limited Liability Co.
No. of Shareholders 1 Person 2 – 20 People 1 – 50 People
No. of Directors N/A N/A At least 1 person
Company Secretary N/A N/A At least 1 person
Legal Statue Ownership of assets & signing of documents can only be under the proprietors. No independent legal status, can be only own the asset and sign the contract under the name of partnership. Independent legal status, able to own asset and sign documents under the name of company.
Debt Obligation Proprietor has unlimited liability for debts of the company. If the company goes insolvent, the proprietor must sell his/her own assets to repay the debt of the company. In addition to the limited partners, the other partners are unlimited liability for the debts of the company. If the company is insolvent, the partners must sell off their private property to repay its debts. All shareholders of the company's liability are limited to their capital, if the company close down insolvent, simply wind up the company, and does not involve personal property.
Company Incorporation & Business Registration After commencement of the Business it is required to apply for the business registration certificate within one month and renew the business registration annually. Same as Sole Proprietorship Before to start of new Business, it must register the company details to Company Registry and is require to apply for the business registration certificate within one month and to renew the business registration annually.
Taxation The company is required to submit the tax return and financial report without audit to the Inland Revenue Department. Same as Sole Proprietorship The company is required to submit the tax return and audited financial report to the Inland Revenue Departments.