General Advantages
The continuance of running a limited company is guaranteed;
The personal liability of the shareholder could not affect limited company’s asset;
The legal document of a limited company protects the rights of the shareholder (investor), which means easier capitalization;
Buying/selling a property with a limited company can prevent the investigation of personal “money source” from the Inland Revenue Department;
A priority of consideration would be given by the Immigration Department to the foreigner when applying business visa to set up a limited company in Hong Kong;
Limited company with limited liability. The risks of running a business could not affect the private property and wealth of the shareholder (separate legal entity);
The name of the company is protected by law. It can stop other people to use the same company name for illegal purpose.
Running a business with a limited company can increase the confident and provide a better image to the client, banker and supplier of the company, hence helping the development of business.

Taxing benefits
The PR and travel expenses are completely deductible as the expenses of the company;
The salary of the director (owner) and his/her partner can be deducted as the company’s expenses;
The limited company’s profit from oversea is not included in the taxing system;
Save a fortune from Profits Tax, Stamp Duty and documentation fees of the lawyer when transferring a property with limited company;
The profits tax of a limited company in Hong Kong is almost the lowest in the world (17.5% of the net profits after deducting the expenses of the company);
People who migrated to overseas country (e.g. America/Canada) can use limited company to prevent double charging of tax from Hong Kong and the overseas country;
The interests of buying a property/car can be deducted as the expenses of the company. Moreover, the assets of the company would also depreciate, hence minimizing the tax of the company;
Businessman who invests in China can use a limited company to sign an agreement of local and overseas capitalization to exclude the profits earned from oversea, therefore paying lesser Profits Tax in Hong Kong;

Please contact (8621) 62476661 62476696, if you have any queries regarding other content of the newsletter.