A company limited by guarantee is typically established to support charitable initiatives in areas like education, religion, poverty relief, and community-beneficial foundations. Although many organizations with this structure operate on a non-profit basis, they are not automatically recognized as charities. To be considered a charity, an organization’s objectives must be entirely charitable as defined by law.
Assistance for Approved Charitable Institute (ACI) Status Application
Our team supports institutions seeking ACI status by helping them apply if they meet certain charitable criteria, including:
- Poverty Relief
- Advancement of Education
- Advancement of Religion
- Other charitable purposes beneficial to the community not covered by the
previous categories
Benefits of Becoming an Approved Charitable Institute (ACI)
Achieving ACI status offers multiple advantages, particularly in tax exemptions. Key benefits include:
- Tax Exemptions: Profits used exclusively for charitable purposes may be tax-exempt, provided:
- Profits are solely for charitable activities and not significantly expended outside Hong Kong.
- The exemption applies to trade or business activities that directly support the institution’s objectives, such as a religious organization selling religious literature.
- If the business activities are performed primarily by individuals for whom the institution was established, such as a society supporting the blind selling handcrafted items made by the blind.
- No Business Registration Requirement: If the organization does not engage in trade or business, it is exempt from business registration.
To apply for ACI status, we offer a streamlined process and provide an application form covering essential details about your organization, such as objectives, membership, directors, and company secretary information.
Registering a Company Limited by Guarantee in Hong Kong
The process for registering a “company limited by guarantee” aligns closely with that for registering a “company limited by shares,” Hong Kong’s most common business structure.
For further guidance on establishing a company limited by guarantee or assistance with the ACI application, feel free to reach out to us.
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