How does a limited company file taxes?

Newly established limited companies usually receive their first tax return form issued by the tax authority within 18 months of incorporation, with a filing deadline of 3 months. Subsequently, for each tax year, the tax authority generally distributes tax return forms on the first working day of April, and the company needs to complete and submit it within 1 month.

Does a limited company need to hire an accountant to prepare financial statements?

The financial statements of an unlimited company do not impose restrictions on the preparer. If the owner or partners possess the relevant knowledge and skills, they can prepare the income statement and balance sheet themselves, thereby saving on the costs of hiring accountants and auditors.

What documents are required for a limited company to file taxes?

Whether the tax matters are handled independently or entrusted to an accountant, documents related to the company must be properly kept for future preparation and reference. Common documents include receipts received by the company, records of invoices issued by the company, monthly account statements, and asset lists.

Does a limited company need to apply for a license?

Some industries require additional applications for relevant licenses, such as education, food and beverage, etc. After the business registration certificate is issued, you should check the government website to see if the business you operate requires a license and the relevant application methods.

Do unlimited companies need to apply for a bank account?

Although a sole proprietorship is applied for in an individual's name and does not have an independent legal status, it is still recommended to open a company bank account. This can make financial and operational expenses clearer and help avoid unnecessary misunderstandings with the bank due to large or frequent fund transactions.

Hong Kong unlimited company registration process, costs, and FAQ guide

1. An unlimited company is the simplest and lowest-cost form of company in Hong Kong. This article explains the complete process, costs, and common questions for setting up an unlimited company.

Unlimited companies (sole proprietorship/partnership) only need to apply for a business registration certificate, and do not need to submit documents to the Companies Registry, making the process simpler than that of limited companies.
Starting from April 2026, the business registration fee is HK$2,350 (one year) / HK$6,170 (three years).
The owners of unlimited companies must bear the company's debts with personal assets, suitable for low-risk small businesses.
Unlimited companies cannot be directly converted into limited companies; if necessary, a limited company must be established separately.

Before starting a company, you first need to choose the type of company. If you are considering the differences between limited and unlimited companies, please refer to:Limited company or unlimited company? 3 aspects to help you decide quickly.》

This article focuses on the registration process, costs, and frequently asked questions about unlimited companies.

Definition of unlimited company

Unlimited companies are the lowest cost and simplest form of company, suitable for small businesses or individuals testing the waters.

An unlimited company is defined as a company with unlimited liability, whether it is a sole proprietorship or a partnership. If the company does not have sufficient funds to pay off its debts, the proprietors and partners have to assume unlimited liability to pay off the debts of the company out of their private property.

Benefits of registering an unlimited company

The advantage of unlimited company is that the start-up and operating costs are lower, you can start a company quickly, the owner can be responsible for the tax return, reducing the cost of auditing, the taxable profit of more than 2 million is only 15% tax rate is even lower than the limited company, in comparison, unlimited company is very suitable for small business.

Unlimited Company Process

The procedure for setting up an unlimited company is simpler than that for a limited company. Apply for business registration within one month from the commencement of the business, i.e.Business Registration CertificateIf you have not started your business, the business registration will not be granted, so there is no need to apply early, the following is the application method and process.

Business Registration Certificate Collection Process

Step 1: Choose the delivery method

There are three ways to file a BR application, namely online, by post or in person, with the fastest way being in person at the Business Registration Office.

Below are the points to note for different types of applications

Online application: The whole process can be done online, but you need to enter the following informationDigital CertificatesOr, you can use SmartCert + Account Verification to verify your identity and digital signature, but the absence of a digital certificate will delay your application for business registration.

By post: Business Registration Certificate Application Forms are required to be obtained by email (taxbro@ird.gov.hk), post or fax to 2824 1482 by the above means. As the forms have separate running numbers, applicants cannot obtain them directly online.

2. In-person submission: Submitting the application in person at the Business Registration Office is the fastest way, and the application form can also be obtained at the Business Registration Office. If submitting in person, you can go to the Business Registration Office on the 2nd floor of the Tax Centre at 5 Coordinating Road, Kai Tak, Kowloon, Hong Kong.

Step 2: Prepare unlimited company registration documents

The documents required for the opening of an unlimited company are listed below:

Business Registration Application Form

The following is a sample of the application form, but it cannot be used for application purposes:

Form 1 (a) - Application for Business Registration for Individuals Conducting Business in Hong Kong

Form 1(C) - Application for Business Registration of a Partnership Carrying on Business in Hong Kong

Copies of identity documents of proprietors and partners
Proof of address of proprietor and partners
For proprietors or partners (all shareholders) who are not Hong Kong residents, a power of attorney for business agent is requiredForm IRBR177

Step 3: Submit and Pay Business Registration Certificate Fee

There are two types of Business Registration Certificates, one with a one-year validity period and the other with a three-year validity period. Except for local companies formed through the one-stop company registration and business registration services, their commencement dates may vary depending on the circumstances of the application for registration. For local companies incorporated in Hong Kong, the commencement date is normally the date of successful application for registration.

Latest business registration fees and charges.

The fee for registering an unlimited number of companies includes the business registration fee and the levy fee, which was increased in the latest year to

3. One-year certificate: Registration fee of HKD 2,350
4. Three-year certificate: Registration fee of HKD 6,170 (including registration fee HKD 5,720 and levy HKD 450)

The above fees are sourced from:the Business Registration Fee and Charge Schedule of the Taxation Bureau, effective from April 2026.

5. Exemption from business registration fee

6. An unlimited company may apply for exemption from the business registration fee if it meets the following conditions,7. (Limited companies do not apply):8. Service-type business: Average monthly turnover of less than HKD 10,000

9. Other businesses: Average monthly turnover not exceeding HKD 30,000
10. Applications must be submitted to the Business Registration Office using form IRBR61C one month before the certificate expires.

Applications must be submitted to the Business Registration Office one month before the certificate expires by filling out form IRBR61C.

Frequently Asked Questions

Unlimited Company Tax Returns

A newly established unlimited company will receive its first tax return from the IRD within 18 months, and the time limit for filing a return is three months. Then, for each subsequent tax year, the IRD will issue a tax return on the first working day of April, and the company has to complete and submit the return within one month.

There is no restriction on the preparer of unlimited company's financial statements, i.e. if you have the relevant knowledge and ability, you can produce your own profit and loss account and balance sheet without the cost of hiring an accountant and auditing.

Whether the tax is handled by you or you hire an accountant, it is important that company-related documents are kept in a safe place for future compilation and review, including:

Receipts received by the Company
Record of invoices issued by the company
Company Account Statement
Asset List

Unlimited companies applying for licences

Some industries, such as education and catering, will need to apply for additional relevant licences, which will be available upon the issuance of Business Registration Certificates.Government Web PageFind out if your business needs a licence and how to apply.

Do I need to apply for a bank account for an unlimited company?

Requirements after incorporation of a limited companyOpening a corporate bank accountAlthough unlimited companies are personal in nature and do not have the status of a separate legal entity, it is recommended that a company account be opened in order to have a clearer picture of the operating expenses and to avoid unnecessary misunderstanding by the banks due to large or frequent fund transfers.

Can an unlimited company be converted into a limited company?

Unlimited companies cannot directly apply to convert into limited companies. If necessary, the correct approach is to establish a limited company separately and then acquire the business assets of the unlimited company with the limited company. It is recommended to directly establish a limited company if you anticipate business expansion in the early stages, as it saves time and costs of restructuring later.

Conclusion

Unlimited companies have simple procedures and low costs, making them an entry choice for small businesses or individuals trying out business. Once the type is determined, you can start the application, and the entire process can be completed in as little as one working day.

If you have any questions about setting up an unlimited company or want to know if it is suitable for your business, feel free to contact the Longfeng Business Consulting Team. We provide one-stop company formation services to help you get started easily. Please click the WhatsApp button at the bottom right to contact us now!

Extended Reading:

Hong Kong Company Setup Guide: 6 Major Steps, Costs, Required Documents

Limited company or unlimited company? 3 aspects to help you decide quickly.

Top 3 things you need to prepare in advance to open a company in Hong Kong

Unlimited company tax filing guide: Profits tax calculation.