Sole proprietor vs limited company invoicing in Hong Kong
Which name goes on the invoice and how income is taxed for each structure.
A sole proprietor and the business are one legal person. A limited company is a separate legal person. Invoice in the name that has the contract. Profits tax rates differ: unincorporated businesses pay 15% and companies 16.5% on profits above HK$2 million, with lower first-tier rates of 7.5% and 8.25%.
- Sole proprietor: invoice in your business name and keep it apart from personal money.
- Limited company: invoice in the exact registered company name.
- Both must keep records for at least 7 years.
- Pay the company account, not a personal one, when the company invoices.
How it works
Decide who signs the contract: you or the company.
Put that name, address and business registration details on the invoice.
Show bank details that match the invoicing entity.
Keep one numbering sequence per entity.
Legal framework
- Inland Revenue Ordinance (Cap. 112), section 51C — business records.
- IRD: Profits Tax (ird.gov.hk).
- Business Registration Ordinance (Cap. 310).
Frequently asked questions
Can I invoice from my personal name?
If you trade as a sole proprietor, invoice in the name you registered. Ask an accountant about your situation.
Does the invoice look different for a company?
Mostly the name and payment details. Use the full registered company name.
Can 4invoices handle two entities?
4invoices creates invoices with your details. 4invoices creates invoices with a tax rate per line, supports any currency with an exchange rate, and downloads a PDF. It does not connect to the Inland Revenue Department, file returns or keep legally validated archives. The 6-month free trial needs no card.