Hong Kong Company Ordinance prohibits the sole director to be the Company secretary.
Limited companies are companies with limited liabilities. From a legal perspective, a limited company is a separate legal entity and thus has the capacity to institute proceedings against others or vice versa. Since the liability of shareholders is limited to the nominal value of their shareholdings, the maximum possible loss of the shareholders could only be the total sum of their investments. Generally speaking, the directors and shareholders of the companies are not personally liable for the debts of the company.
Where the investors prefer to adopt other forms, such as sole proprietor or partnership, to run their businesses, the liabilities of the investors are unlimited. The creditors can hence institute legal proceedings directly against the investors. Where the investors cannot repay the debts, the investors are forced into personal bankruptcy. Nevertheless, incorporating and running a limited company is comparatively more costly.
The Profits Tax Return is a form issued by the Inland Revenue Department (IRD). The first one is issued 18 months after incorporation. If the company has profit in the first year, the form is issued on October yearly. If the company suffers a lost, then the form is issued after three to four years. If the company has profits but does not receive the form, it must inform IRD to issue the form. If the company conducts business, it must submit the Profit Tax Return form along with a financial statement audited by a Hong Kong Certified Public Accountant.
Except for some businesses such as banking, travel-related, insurance-related, etc. which require licenses, as long as the business is legal, there is no restriction as to what kind of businesses the company can conduct.