Accounting and tax collections are important in every country, and this is often no exception in Hong Kong. Each Hong Kong company will get to file the Profit tax return (PTR) for every respective year when conducting business, and this is often issued by the Hong Kong Inland Revenue Department (IRD).
The company would wish to arrange the company accounts and prepare them to be submitted to a licensed Public Accountant to be audited and filed to the government. After the accounts are prepared and audited, the audit report and tax computation are going to be submitted with the PTR to the Inland Revenue Department.
Since for setting up a company limited by guarantee, you want to have 1 founder member, a company secretary, a minimum of 2 natural person directors, and a registered office address.
In fact, all company directors must not be corporate. Members meanwhile are often either corporate or individual. While there's no restriction on the nationality and resident status of either directors or shareholders.
Setting up a limited by guarantee (as a non-profit organization) in Hong Kong, usually takes a minimum of one month to be officially incorporated.
In order to include your non-profit organization in Hong Kong, you would like to pay just $1294 USD for the method. We assure you to supply you with the absolute best or world-class services that will not only cause you to stand out but will take you and your business to new heights.
Moreover, let’s say in future if you would like to use your “Limited by Guarantee” Company as a Charity organization, then you'll get to apply with the Inland Revenue Department, and IRD will review individually (will not base on the approval of the Companies Registry).
If you would like to line a charity in Hong Kong, then you'll choose various ways. As mentioned above, to register a company limited by guarantee (a non-profit organization) in Hong Kong, therein case, you would like to think about the governing instrument. A charity must have a governing instrument that:
For applying to become a charity, you would like to get the assistance of professionals on document preparation. But still, the businesses Registry (CR) and Inland Revenue Department (IRD) will make decisions independently.
Under section 88 of the Inland Revenue Ordinance (Cap 112), the charity is often entitled to tax exemption. However, only charities under the jurisdiction of Hong Kong courts qualify for the exemption.
From moving forward, you ought to know that not all limited by guarantee, non-profit-making organization or voluntary are like charity, regardless of how worthy their causes would be. Moreover, as per the Inland Revenue Ordinance, there's no provision that exempts a “voluntary” or “non-profit-making organization” from tax.
The tax exemption will only tend to charities which are established in Hong Kong or Hong Kong establishment of overseas charities like those deemed to be established in Hong Kong under section 4 of the Societies Ordinance or registered under Part XI of the businesses Ordinance (Cap 32, Old CO) or under Part 16 of the Companies Ordinance (Cap 622, New CO).
They even have to organize and submit supporting documents of tax exemption with IRD. This process may take tons of your time.