Limited Companies that registered in Hong Kong are governs by Chapter 32 of the Hong Kong Company Ordinance. According to the company ordinance:：
| 1: | | There are two types of companies in Hong Kong, namely unlimited companies and limited companies. The business risks of limited companies will not affect the personal property and assets of the shareholders. |
| 2: | | For limited companies, there are legal documentation to protect rights and interests of each shareholder ( investor ). So it is easier to raise capital. |
| 3: | | Limited companies are successive and can be handed down through generations. While unlimited companies will be terminated after the decease of the owner and cannot be handed down to the next generation. |
| 4: | | The personal debts of the shareholder will not affect the property and assets of the limited company. |
| 5: | | Running business in the way of limited companies will enable you to give good impression to and win confidence of clients, bankers and suppliers. It is helpful for the business development. |
| 6: | | Purchasing property in the name of limited companies will enable you to avoid being checked by the Inland Revenue Department for the source of funds for purchasing property. |
| 7: | | Priority will be given to the Chinese, Taiwanese and foreigners who have established limited companies in Hong Kong when they apply to the Immigration Department for working visa in Hong Kong. |
| 8: | | The names of unlimited companies will not be protected by the laws, so many unlimited companies with the same names turn up. Those companies may be personated for frauds easily when doing business and heavy losses have been caused because of this. |
