approved charitable institution / non-profit organisation
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 limited by guarantee for such purpose.
Charitable purposes are :-
- relief of poverty;
- advancement of education;
- advancement of religion; and
- other purposes of a charitable nature beneficial
to the community not falling under any of
the preceding heads.
Governing instruments/documents must include :-
- clauses stating precisely and clearly its objects;
- clause limiting the application of its funds towards the attainment of its stated objects;
- clause prohibiting distribution of its incomes and properties amongst its members;
- clause prohibiting members of its governing body from receiving remuneration;
- clause specifying how the assets should be dealt with upon its dissolution; and
- clause requiring the keeping of sufficient records of income and expenditure (including donation receipts), proper accounting books and compilation of annual financial statements.
Some tax advantages to ACI :-
- exempted from tax;
- exempted from profts tax, if it carries
on a trade or business. If (i) the profits
are applied solely for charitable purposes,
and (ii) the profits are not expended substantially
outside Hong Kong, and either (iii-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 (iii-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
- exempted from paying business registration
fee unless a trade or business is carried
on
Application and Transformation
If you have your existing Hong Kong company, with
not-for-profit motive, and consider it as non-profit-organisation
("NPO"). You would like to apply for
approved charitable institution, we may assist in the company transformation and make application for approved charitable institution. During the process, we will prepare the documents and assist
on the issue.
Please refer our fees schedule for details.
Our aim is to provide a comprehensive service to our clients in both offshore
and Hong Kong operations. We tailor our services to client's individual
requirements. If you would like to take advantage of our experience, please
free to contact us.
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