How to register a charity in HK?

Dear All,

I would like to set up a charity here in HK and I have read you could register either as a company or as a society.

What is technically the difference? What's safer? How long does it take before you're officially registered and can start raising funds or using your own time and energy to do what your charity is going to do?

Also, can I register it myself or do I need to use an agency (did this for my company, and I feel they try to rip me off at every opportunity...).

Thanks in advance for your help.

There are two options for registering a non-profit legal entity in Hong Kong:-


1. Register as a Company limited by guarantee-without a share capital under the Companies Ordinance, or

2. Register as a Society under the Societies Ordinance


Company limited by guarantee – without a share capital


To incorporate a Company, an organization must comply with Memorandum and Articles of Association. After that it can proceed to register with Companies Registry. Many charities and non-profit organisations option for this.


The entity follows the usual steps to register a Company limited by “guarantee” instead of limited by “shares”, because there is no capital involved. Similar to the structure of a private limited company, a non-profit organisation has a Board of Directors, members, and a local secretary. The members can either be individuals or corporations. The process of incorporating a Company is around 1 month for non-profit organisations.


Subjected to Companies Registries’ approval, a non-profit organisation can be incorporated without the word "Limited" (in its company name). However, the processing time can be very long, e.g. one year, depending on the case.


Society


To register as a Society, an organization must register with the Societies Office of the Police Department. Many less formal industry associations and social/recreational groups option for this.


Advantages


Cost - minimal. A society is free of the statutory controls which companies are subject to, and can be inexpensive to run. There is no fee for registering under the Societies Ordinance.


Simplicity – set-up process is simple and hassle-free. A registered society can be very simple to run. Minimal formalities are required and administrative complexity can be kept to a minimum.


Disadvantages


Unincorporated structure - One drawback of an unincorporated body is that if the organisation becomes inactive, great difficulties can sometimes be encountered in identifying the persons with the authority to take decisions as to the disposal of the assets, or locating a quorum having power to take decisions.


Personal liability - Both members of the management committee and sometimes the members of the association itself may incur personal liability.


Business Registration with the Inland Revenue Department


Whether a non-profit organization registers as a Company or a Society, it must also complete Business Registration with the Inland Revenue Department.


Tax Implications


Not all voluntary or non-profit organisations are charities, however worthy their causes may be. Only non-profit organisations that qualify for Inland Revenue Ordinance Chapter 112 Section 88 are charitable organizations, and as such, are entitled to tax exemption status in Hong Kong.


Please note that donations made to organizations without charitable status cannot be tax-exempt.


You could incorporate the charity by yourself but it is difficult for a layman to do. If you need help, please contact me. I am a corporate company secretary and my firm offers reasonable price.

That is word for word what I found doing a google search. Thanks