• Hong Kong Companies can be both limited liability companies as well as unlimited companies. Investors, however, rarely opt for an unlimited company.

    Private Limited Company
    This is the most common form of companies chosen by investors running small & medium sized business.  A company limited by shares has a share capital which is divided into a number of shares.  The value of the share capital is equal to the total contributions by all investors but the value of each share issued to each investor is not necessarily the same.  These shares are held by shareholders who are entitled to a share in the profits of the company and receive a dividend corresponding to their respective percentage of shareholding in the company.  Percentage of shareholding solely depends on the number (and the class, if any) of shares each shareholder holds instead of the values s/he has contributed.  In case of a loss, the shareholders will lose the amount limited to their investment only.

    Public Limited Company
    A public company limited by shares is a company in which the number of shareholders can be more than 50.  Most public companies are listed on a stock exchange.