What are the private companies mentioned in Hong Kong law?

1. The private company mentioned in Hong Kong law refers to a company with less than 50 employees, who is not public and whose share transfer is restricted.

2. Private companies in Hong Kong are also called closed companies because they are not open. It should be noted that the private company referred to in Hong Kong law only emphasizes non-publicity and does not emphasize the limited liability of investors, so it is more inclusive and can include limited companies, unlimited companies, guarantee companies and limited companies with directors and managers bearing unlimited liability. Companies with the following characteristics:

1) The number of members (shareholders) is more than two and less than fifty;

(2) Not offering stocks and bonds to the public;

3) Strictly restrict the transfer of shares.

3. Private companies are also called closed companies, private companies, minority companies or unlisted companies. It is neither a private company nor a so-called wholly-owned company. Article 29 of the Companies Ordinance (1) stipulates that a private company refers to a company whose articles of association must contain appropriate provisions to restrict the following three aspects:

1) restrict its share transfer right;

2) The number of members of the company shall not exceed 50, excluding those who have been employed by the company and those who have been employed by the company before and remain members of the company during the employment period and after the termination of employment;

3) It is forbidden to invite the public to subscribe for any shares or bonds of the company.

There are differences in legal treatment between private companies and listed companies. Private companies can't disclose their business status to the outside world. When submitting the annual report to the Companies Registry, the balance sheet and audit report can be exempted, while listed companies cannot enjoy these privileges. Among the companies registered in Hong Kong, the number of private companies is the largest. The Company Law of Hong Kong does not pay much attention to the logical relationship when determining the types of companies, but provides as wide a choice as possible according to the actual needs to meet the requirements of a free economy. Pluralism itself is the embodiment of freedom. However, freedom is not arbitrary, and all free choices must be based on law. One of the significance of Hong Kong's company law is to provide a legal boundary for the free choice of companies.