Company Hong Kong

Private Limited Company Vs Public Limited Company

Marketing INCORPORATION

Private Limited Company Vs Public Limited Company

A private company in Hong Kong is often set up for the purpose of conducting small business. A private company does not need to file its accounts with the Companies Registry, so that it may maintain confidence of the financial situation of the company. As defined by the Companies Ordinance of Hong Kong, it is a company that:

  • Restricts the right to transfer shares
  • Limits the number of members to 50 people
  • Prohibits any invitation to the public to subscribe for shares in the company

A public company, on the other hand, fails to obey the rules as stated above. A public company does not have the same financial privacy as a private company and must submit its annual accounts. When a public company submits its annual accounts, they are then put on public record for inspection. Beneath the spectrum of public companies, one may also find “listed companies”. A listed company is on the Hong Kong Stock exchange, meaning their shares are freely transferable by the public. A listed company not only obtains substantial finance by issuing shares to the public, but also enjoys better facilities from the banks.

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