Being an approved charitable institute (ACI) in Hong Kong offers several advantages:
These include exemption from tax on profits, provided that the profits are used solely for charitable purposes and not substantially spent outside Hong Kong.
Additionally, if the trade or business is related to the expressed objects of the institution or trust or mainly carried out by those who benefit from the trust, it is also exempt from tax.
Moreover, ACIs are not obligated to register their businesses unless they are involved in any trade or business. Upon request, an application form can be provided to fill in the details of the institution, such as the objectives, number of members, membership fee, classification, directors, and company secretary.
Finally, registering a “company limited by guarantee” follows the same process as registering a “company limited by shares,” which is the most common business entity type in Hong Kong.
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