Guide to Establishing an Non-Profit Organisation in Hong Kong
- a22162
- Jun 6, 2024
- 3 min read
Updated: Jun 21, 2024
Guide to Establishing an Non-Profit Organisation in Hong Kong
Non-Profit Organisation
A non-profit organization (NPO), also sometimes referred to as a non-governmental organization (NGO), is an organization that prioritizes social good over financial gain. NPOs work on a variety of social issues, including:
Poverty alleviation
Environmental protection
Education
Healthcare
Human rights
Animal welfare
Arts and culture
Here are some of the key characteristics of NPOs:
Mission-driven: NPOs have a clearly defined social mission that guides their activities.
Non-profit distribution: NPOs don't distribute profits to owners or shareholders. Any surplus funds are reinvested back into their mission.
Public benefit: NPOs aim to generate a positive social impact for the community.
Volunteer involvement: Many NPOs rely on volunteers to help them achieve their goals.
NPOs can take on a variety of legal structures, depending on their location and specific goals. Here are some common types:
Charitable organizations: These NPOs typically provide direct aid or services to those in need.
Advocacy groups: These NPOs work to raise awareness about a particular issue and influence policy change.
Social enterprises: These NPOs use business models to achieve their social goals.
Setting Up a Non-Profit in Hong Kong
Hong Kong offers a supportive environment for non-profit organizations (NPOs). Here's a basic guide to get you started:
1. Choose Your Structure:
There are two main options for NPOs in Hong Kong:
Company Limited by Guarantee: This is the most popular choice. It limits the liability of members to a predetermined amount if the company dissolves.
Society: Societies are simpler to set up but lack the legal structure of a company. Office bearers have unlimited liability.
2. Gather Required Documents:
The specific documents will vary depending on your chosen structure. Generally, you'll need:
Application form
Identity documents for founders/directors
Proof of business address
Constitution or Articles of Association outlining your purpose and governance
Consent letters from relevant parties (e.g., office space owner)
3. Registration Process:
Company Limited by Guarantee: Submit the documents to the Companies Registry. The process typically takes around five working days.
Society: Register with the Registry of Societies. The processing time can be up to 12 working days.
4. Business Registration:
Once registered, complete business registration with the Inland Revenue Department (IRD) for tax purposes.
Additional Considerations:
Appointing Directors and Members: You'll need at least two directors and one company secretary for a company limited by guarantee. There's more flexibility with societies.
Naming Your NPO: Companies cannot have "Limited" in their name, while societies can.
Seeking Tax Exemption: Register with the IRD to apply for tax-exempt status for donations.
Resources:
For a more detailed guide and downloadable forms, consider consulting these resources:
The Companies Registry (https://cr.gov.hk/): Provides information on company registration.
The Registry of Societies (https://www.police.gov.hk/ppp_en/13_faqs/faq_so.html): Offers details on society registration.
Inland Revenue Department (https://www.ird.gov.hk/): Provides information on business registration and tax exemption for NPOs.
How Bestar can Help
Bestar can assist with NPO establishment in Hong Kong. Here are some areas where we are able to help:
Choosing the Right Structure: Bestar might be able to advise on the most suitable structure (company limited by guarantee or society) based on your specific goals and needs.
Document Preparation: We assist in preparing the necessary documents for registration, including the constitution or articles of association.
Registration Process: Bestar could help navigate the application process with the Companies Registry or Registry of Societies.
Business Registration: We facilitate business registration with the Inland Revenue Department.
Contact Bestar to inquire about our services related to NPO establishment in Hong Kong. We offer a consultation to understand your needs and provide a tailored plan.
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