2021 Korchina TNC Webinar – The Solution Of Trade In Hong Kong

• 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 The 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

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. 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.  The 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 is incorporated, you will receive the official documents stating your company as officially incorporated.

If you are still not convinced with this information and looking for more detailed information on the set-up and the taxation system of non-profit organization in Hong Kong,, please contact us!

We are KORCHINA TNC and thank you for watching.