BLOG

Target Audience: 😋
🔴Limited Company🔴: Suitable for expanding businesses or attracting new investors, especially in high-risk industries.
🟡Unlimited Company🟡: Suitable for small-scale business operations that do not involve high-risk industries.

Responsibility Scope: 👥
🔴Limited Company🔴: Shareholders of a limited company have limited liability. Generally, their responsibility is limited to the issued shares. If the company has debt issues, shareholders' personal assets are usually not affected.

🟡Unlimited Company🟡: Shareholders of an unlimited company have unlimited liability. This means their personal assets may be affected if the company is unable to repay its debts.

Legal Status: 📝
🔴Limited Company🔴: A limited company has a separate legal entity and can enter into contracts, own assets, and engage in legal proceedings in the company's name.

🟡Unlimited Company🟡: An unlimited company does not have a separate legal entity. It is jointly owned by the proprietor(s) or partners in their personal capacity, and contracts cannot be signed in the company's name.

Maintenance Procedures:
🔴Limited Company🔴: Maintaining a limited company involves more complex procedures. It requires compliance with the company's articles of association. For example, a limited company needs to appoint a company secretary, submit regular filings, update company registration and business registration information, and prepare financial statements for auditing.

🟡Unlimited Company🟡: The maintenance procedures for an unlimited company are relatively simple. It only requires filling out business registration forms, updating business registration information, and submitting income tax returns.
(http://backend.clggroup.com.hk:1338/uploads/vs_4_85af3bdead.jpeg)
If you have any tax-related questions, feel free to ask us! 📞