Hong Kong Unlimited Company Registration

An unlimited company registration only needs a business registration, and the establishment procedure is quick and simple. It basically only takes one to two working days to obtain the business registration.

An unlimited company is exactly what it sounds like. There is no upper limit on the liability of the proprietor and shareholders. Once the business ends, the proprietor and shareholders need to bear all the debts of the company. However, since the accounting fees are not too expensive, the tax filing process is also very complicated. Simple, just fill in the relevant items according to the tax return.

Moreover, the establishment of an unlimited company is simple. As long as two shareholders trust each other, the company can be formed, eliminating the need for complicated legal registration procedures.

Therefore, it is more suitable for businesses with simple business scale or small operations. For example: online store, checkered shop, etc.

In fact, unlimited companies have little protection for shareholders or members, because when the company faces liquidation, all shareholders will bear huge financial debts.

There is no limit to the losses they can suffer, and before a business can pay its bills, someone has to keep paying.

For many members and shareholders, the loss of an unlimited company threatens shareholders’ money and assets.

On the contrary, a limited company has fewer regulations. Basically, as long as the shareholders agree, the directors (executive business shareholders) are in charge of the operation, and the management responsibilities are relatively flexible.

Entrepreneurs should fully consider the forms of limited liability companies and unlimited companies, as discussed below.