Although Hong Kong's economy is currently in a sluggish state, there are still many people starting their own businesses, including those who are proactive and those who are passive (unemployed and forced to start a business). Many entrepreneurial friends ask: I am just starting a business, and I am just doing a small business. Should I set up a company? (Or ask: Should I apply for business registration?)
According to the Hong Kong Business Registration Ordinance (Chapter 310), business registration is required for all businesses operating in Hong Kong (small businesses are exempted: the average monthly turnover of the service industry does not exceed 10,000 dollars, and other businesses do not exceed 30,000 dollars); including In some industries, such as piano teaching, tutoring, online trading, outsourcing, consulting, etc., it is actually illegal if they fail to apply for business registration.
Some friends also asked: Should I set up a company? In an informal way: there are two types of companies in Hong Kong, one is a "limited company" and the other is an "unlimited company". A limited company is a limited company registered and established in accordance with the Companies Ordinance (Chapter 622). It is an independent legal entity. The legal liability of shareholders is limited. Tax filing is done independently in the name of the company. An independent audit is required every year. The operating cost is relatively high. . The so-called "unlimited company" is a relative term to "limited company". It does not actually exist. It is just customary to refer to an individual operating a business. After applying for a business registration certificate, it is considered an "unlimited company" and is equivalent to the personal responsibility of the proprietor. , the liability is unlimited, tax returns are filed together with the owner’s personal tax returns, no audit is required, and operating costs are relatively low.
To summarize briefly: any business operating in Hong Kong (except for small amounts) must undergo business registration. You can apply for an "unlimited company" business registration certificate in your own name, or apply for a business registration certificate by setting up a limited company. There are big differences between the two in terms of legal responsibilities, tax responsibilities, risk management, etc. Entrepreneurs can choose to use one of these methods to apply for business registration according to their own circumstances.
Our company is handled by licensed senior accountants who can answer questions and establish various company structures for customers. If you have any questions about the company, please feel free to contact us.
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