Why More People Setup for Non-profit Organizations?
The goal of any nonprofit organization is to offer knowledge, services or research to benefit the broader community or general public using majority organization’s funds. These organizations do not keep their profits, but rather re-invest the funds into services, programs or research. Business owners operating nonprofit organizations experience has these various advantages including
• Legal Entity
• The satisfaction of helping people.
• Limited Liability
• The eligibility of public and private grants.
Before we dive deeper into the details, first you should know the difference between a charity and a non-profit making business.
Charity is not equivalent to the non-profit organization including non-governmental organization (NGO) and voluntary organizations and trusts. Hence, not all Non-profit organizations are charity. However, a charity must be non-profit making.
Regardless the objective of “non-profit making,” a qualified “charity” organization is a specific form of organization which must be enrolled and registered under the Welfare Department of Hong Kong and list in charitable donations and tax-exempt charities of Inland Revenue Department.
The charitable purposes for an organization are generally classified into four different categories. They are as:
• Relief of poverty
• Advancement of education
• Advancement of religion, and
• Other charitable acts beneficial to the Hong Kong community
3. Information required for resident director(s) and shareholder(s):
a. Hong Kong identity card copy
b. Proof of residential address copy
There is no requirement for the directors to also be shareholders or A director and shareholder can be the same person. A Hong Kong private limited company can have a minimum of 1 and maximum of 50 shareholders.
4. Information required for corporate director(s) and shareholder(s):
a. Parent company registration documents copy (i.e. Company Incorporation Certificate and Articles of Association)
The director /shareholder can be a company
Set up a Hong Kong Non-profit organization
It’s simple to set up a Non-Profit Organization. The entities follow the usual steps to register a company limited by guarantee instead of limited by shares, since there are no funds involved. Similar to a private company, a non-profit making organization has a board of directors, members (individuals or corporations) and a local or a social secretary.
A few basic steps for the company registration
The process takes around one month. When applying you will be required to write up the company’s mission, vision and target audience. These voluntary or non-profit organizations must qualify as a charity to benefit from a tax exemption from the Hong Kong Inland Revenue Department. Company registration process includes a few basic steps:
First of all, check the company name availability. After that, please prepare
• A photocopy of your passport
• A copy of an official certificate as a proof of your residency
• A questionnaire with standard questions such as your address
• Your passport no. and the name of the shareholders and directors
Once all the documents have been received and reviewed, the process will start to incorporate your company. After it’s incorporated, you will receive the official documents stating your company as officially incorporated.
Registered address of Hong Kong Company >>
[Hong Kong] Bank Account Opening
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