These are the types of companies available to be set up in Hong Kong:

  1. Company limited by shares: Members’ liability is limited to the unpaid amount on their shares.
  2. Company limited by guarantee: Has no share capital, and members’ liability is limited to their agreed contributions during winding up. Non-profit organizations are often registered as guarantee companies.

The type of company which is most commonly established in Hong Kong is the private limited liability company.

Limited liability companies enjoy separate legal status, liability protection for owners, positive reputation, and stable structure. They also make capital raising and ownership transfer easier compared to sole proprietorship and partnership. Foreign business professionals often refer to this type of entity as an offshore company in Hong Kong.