"Limited Company" can be seen and heard everywhere in today's society. When it comes to your knowledge about "Limited Company" Are you also a "limited company"?
According to information released by the Hong Kong Companies Registry, at the end of 2023, there were 1.43 million limited companies in Hong Kong, with an average of one limited company for every 5 people; there will be 130,000 newly established limited companies in 2023, with an average of 500 people every working day. With the establishment of new companies, it can be seen that the application of limited companies is very extensive in Hong Kong.
What exactly is a "limited company"? Why is it called "Limited Company"? Basically, "limited" means that the shareholder's liability to the company or creditors is only limited (limited) to the company capital subscribed by him. The shareholder is not responsible for additional company debts.
Why use a limited company? What is the difference from unlimited company?
The main differences are as follows:
1. Control risks: As mentioned above, when a shareholder operates legally, his liability to the company and creditors is limited to his subscribed capital to the company, and he does not need to bear liabilities exceeding this amount. In this way, he can control the business risks.
2. Reputation: Most people think of a limited company as a relatively formal and large-scale company. Compared with unlimited companies, the perception is that of small-scale or individual operations;
3. Tax incentives: The Hong Kong tax regulations are relatively loose on the deductible expenses of a limited company, and more deductible expenses are available, especially expenses related to shareholders/directors.
In addition to companies registered in Hong Kong, companies in other countries/regions can also be used in daily business to match different business strategies.
Our company is a licensed "Trust and Company Service Provider" company in Hong Kong, which can assist in the establishment of various companies and provide comprehensive corporate services. If you have any questions about company establishment or company operation/maintenance, please feel free to contact us.
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