Legal status and liability
A limited company has a separate legal identity, while sole proprietors and ordinary partners bear personal responsibility for business debts. Personal guarantees and other legal liabilities are considered separately.
Contracts, inventory, employees and potential claims also affect the choice of business structure and insurance.
Ownership and decisions
Company ownership is represented through shares and company records.
A sole proprietorship is run by its proprietor; partners should agree contributions, responsibilities, profits and exit terms.
Costs beyond setup
A limited company has ongoing costs for company secretary services, a registered address, annual returns, accounting, tax filing and any required audit.
Sole proprietorships and partnerships still need business registration, records and tax filing.
Company formation services
Company formation requirements depend on the business activities, ownership structure and operating budget.
WeCorp registers limited companies, sole proprietorships and partnerships, with formation documents, fees and ongoing administration set out for each business structure.
Related services and insights
Hong Kong limited company registration
A company limited by shares has a legal identity separate from its shareholders, whose liability is generally limited to any unpaid amount on their shares. Share ownership and defined management roles provide a structure for bringing in investors and continuing the business.
Hong Kong sole proprietorship and partnership setup
Sole proprietorships and partnerships are businesses run directly by an owner or partners. Their registration and administration are relatively simple, but the owners remain personally liable for business debts. This liability is an important consideration when choosing a business structure.
Hong Kong company annual administration
Company administration continues throughout the year. Annual returns, business registration renewal, statutory records, accounts and tax filings follow different dates and requirements, so an annual budget needs to allow for both recurring work and company changes.
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