Hong Kong company limited by guarantee is mainly established for the purposes of enhancement of education / training (like association or society), religion, relief of poverty, environmental protection, trust and foundation, and betterment for the community. Most companies fallen into this type is not for profit. Please note that it may not be a charitable institution, a group of members may form this type of company for pursuing their interests for or not for profit.
The basic and minimum structure of a Hong Kong company limited by guarantee is having:
The address of the registered office and secretary must be in Hong Kong. The company is obliged to file Annual Return annually with the audited accounts.
Generally speaking, for an institution or a trust to be a charity, it must be established for purposes which are exclusively charitable according to law. If the objectives of the company is not-for-profit and for charities etc.., we may assist for in the application for approved charitable institution (“ACI”) and incorporate the company for such purpose.
Charitable purposes are:
Some Tax Advantages to ACI:
1) the profits are applied solely for charitable purposes, and
2) the profits are not expended substantially outside Hong Kong, and either
3) (a) the trade or business is exercised in the course of the actual carrying out of the expressed objects of the institution or trust; or (b) the work in connection with the trade or business is mainly carried on by persons for whose benefit such institution or trust is established.
If you want to dispense to use “Limited” after the company / organisation name, we may assist in this application. It is normally for organisations like association, society, education, foundation, charitable fund, church and religious mission etc… The process takes over 3 months for existing ACI and over 12 months if application is with incorporation at the same time.