The Difference between Limited and Unlimited companies

Operating business in Hong Kong under Corporation must be better than under the personal name. It gives better image and more confidence for customers. Common company categories are limited companies and unlimited companies.

Unlimited Company
Refers to a company organized by one or more proprietors who are jointly and severally liable for the company's debts.
When the proprietor of an unlimited company does not have enough assets to repay the company's debts, all property in the proprietor's personal name shall be jointly and severally liable for the repayment. That is, an unlimited company guarantees not only the current assets of the company, but also all the personal assets of the proprietor.

Limited Company
A company organized by one or more shareholders, whose liability is limited to the amount of their capital contribution.
The shareholders of a limited company are responsible for the company up to the amount of their capital contribution; to put it simply, when the company suffers a loss, the shareholders’ losses are limited to the assets invested by the shareholders in the company. As for other assets under their personal names, will not be affected.

Details	Limited Company	Unlimited Company (Sole Proprietorship or Partnership)
Incorporation Fee	HK$ 3,920	HK$ 2,200
Incorporation Timing	1 day / 7 day	1 day
Annual fee
Business Registration Fee	$2,200	$2,200
Annual Return Filing Fee	$105	No need
Accounting	Yes	Yes
Auditing	Yes	No
Profit Tax Return	Yes	Yes + Financial Statement
Tax Rate	2 Million HKD or above: 16.50% Below 2 Million HKD: 8.25%	2 Million HKD or above: 15.00% Below 2 Million HKD: 7.50%