無限公司 – Sino-aus.com

 

Unlimited companies, like sole proprietorships and partnerships, do not have separate legal status.

Therefore, a company cannot enter into contracts in vain but must use the names of the relevant sole proprietors or partners.

 

If an unlimited company goes bankrupt, the sole proprietor and the partners will face the risk of personal liability or even bankruptcy. In addition, unlimited companies do not have perpetual continuity, which means that when the owner or partner goes bankrupt or dies, the company must be dissolved. There is also a limit on the number of owners. A sole proprietorship can only have one owner. A joint venture can have up to 20 owners. Despite these disadvantages, unlimited companies also have certain advantages. Since unlimited companies do not need to register accounting, the proprietor only needs to settle accounting and tax returns every year, so the accounting and auditing costs are lower.

In addition, the tax rate of unlimited companies is lower. Since Hong Kong implements a two-tier tax rate, the taxable profits of unlimited companies do not exceed HK$200,000 and are subject to a tax rate of 7.5%. Any part of the taxable profits exceeding HK$2 million is subject to a tax rate of 15%.
For a limited company, if its taxable profits do not exceed HK$2 million, it shall be subject to a gradient suppression of 8.25% and any part of its taxable profits exceeding HK$2 million shall be subject to a gradient suppression of 16.5%.

Category: Unlimited Company / Limited Company.

Tax rates: 7.5% on first $2,000,000 of profit under two-tier tax system, 15% thereafter 8.25% on first $2,000,000 of profit under two-tier tax system, 16.5% thereafter

Eligibility criteria: Hong Kong residents or Hong Kong permanent residents, Hong Kong or non-Hong Kong residents. If the applicant is not a Hong Kong resident, the applicant needs to appoint a Hong Kong resident as the company agent. If the applicant is not a Hong Kong resident, the company secretary must be a Hong Kong resident or a limited company registered in Hong Kong.

Continuity: As long as the owner or partner goes bankrupt or passes away, the company must be liquidated or dissolved. Unless liquidated, it will exist forever.

Debt issues: The owner needs to assume unlimited debts for the company to protect the shareholders' personal finances, and the shareholders' liability is limited to the registered capital.

Legal status: Non-sole proprietor, the proprietor cannot enter into a contract with the company. Independent proprietor, the shareholders can enter into a contract with the company. Operating cost: Lower, only need to prepare accounts and file tax returns every year. Higher, need to prepare accounts and audit every year.