Hong Kong offers various types of companies to cater to the diverse needs of foreign entrepreneurs, business owners, and investors. Nonetheless, foreign investors primarily opt for three company types, namely Limited Liability, Sole Proprietorship, and Partnership when establishing their business in Hong Kong.
- Limited Liability Company is a popular choice among business owners due to its owner-friendly benefits. As a separate legal entity, the company offers protection to personal assets from business risks and liabilities.
- The partnership allows two or more individuals to share ownership of a single company and raise funds as needed. However, partners also share the responsibility for the liabilities and risks associated with the actions of other partners.
- Sole Proprietorship is suitable for small-scale businesses with low risks. The setup process is fast and straightforward. However, this type of company does not provide separate legal entity status, and personal assets are not protected from business risks and liabilities.